Transcript FRESH PRODUCE TERMINALS - Department of Agriculture
THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI)
AGRICULTURE TRADE AWARENESS CAMPAIGN Date: 17 JULY 2008
2008 –BRENDA HORNE – CEO of MCLI
1. MAPUTO CORRIDOR BRIEF OVERVIEW Re-established proven transportation route for regional trade as well as to international markets for SA, Zimbabwe, Swaziland, Botswana through Mozambique.
SOUTH AFRICA Tzaneen Palabora
MAPUTO CORRIDOR
1 OF AFRICA’S PROMINENT ECONOMIC HUBS Steelpoort Johannesburg Middleburg Secunda Belfast Nelspruit Ermelo Komati poort Piggs Peak SWAZI LAND Maputo
WHAT IS THE MCLI
VISION To become the leading corridor stakeholders’ coordinator, contributing to the aims and objectives of the Maputo Development Corridor. This will be achieved by working towards a Logistics Corridor based on excellence – a cost-effective, continuous, reliable logistics route with positive returns for all stakeholders. MISSION To support the development of the Maputo Corridor into a sustainable, highly efficient transportation route, creating an increasingly favorable climate for investment and new opportunities for communities along the length and breadth of the Corridor.
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STRATEGIC OBJECTIVES OF MCLI
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To coordinate the views of investors, service providers and users of the Corridor to engage with public sector to promote development and change, making the Maputo Development Corridor the first choice for the region’s importers and exporters alike.
To inform the market about the Corridor and to market the strategic benefits and opportunities offered by the Corridor GOAL “Maputo Corridor the first choice for the Corridor Region’s Stakeholders”
MPDC SHARE HOLDING As from Jan 2008
Portus Indico -Private Sector 51%
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DPW 48.5%
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Grindrod – 48.5%
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Mozambique Gestores 3%
24.735% 24.735% 1.53% Public Sector 49%
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CFM 33%
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Government 16% 33.000% 16.000% 100.00%
THE NEW BOARD OF MPDC- MAR 2008
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Port Master Plan - ensuring that the Port is armed with a business strategy that is farsighted and robust enough to weather the inevitable peaks, while remaining flexible and nimble enough to make the most of the opportunities which presented themselves.
In the context of regional development and growth, Port Maputo would be moving towards building the various business entities at the port into a single unified enterprise which would ensure that regional standards are set and which would service, with increasing efficiency, the growing volumes through the Port. Regarding new investments - investments would be made in supporting operations such as depots, warehousing, packing and unpacking facilities, amongst others. “Our goal is to build a unified “Port Maputo” where every user and operator will have a voice and be an integral part of its growth and future success as the best service provider in the region.” said Ferraz the new Chairman of MPDC -
PORT OF MAPUTO TRANSIT CARGO
TOTAL TRANSIT TOTAL TRAFFIC Linear (TOTAL TRAFFIC) 8,000,000 6,000,000
T H R OU GH P U T T ON N E S
4,000,000 2,000,000 0
19 9 7 19 9 8 19 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 , 0 16 , 4 0 0 2 , 0 5 2 , 0 0 0 2 , 0 5 4 , 10 0 1, 6 6 3 , 2 0 0 1, 9 2 3 , 6 0 0 T OT A L T R A N S I T T OT A L T R A FFI C 3 , 10 9 , 0 0 0 3 , 0 16 , 4 0 0 3 , 10 1, 6 0 0 3 , 0 3 5 , 9 0 0 PORT POTENTIAL 26 MILLION TONS 2007 – Total 6,70mt transit 2.833mt
2007 – Road traffic in/out of Port = 2.25M Tonne 2007 – Rail traffic in/out of Port = 1.7M Tonne 2007 – SA Exports = 59% of all Port Exports 2007 – SA Transit = 77% of all Port Transit Cargo 4 , 0 0 1, 6 0 0 1, 8 0 4 , 4 0 0 4 , 4 2 3 , 6 0 0 Y E A R S 2 , 0 6 2 , 8 0 0 5 , 0 3 6 , 0 0 0 2 , 3 0 9 , 9 3 5 5 , 5 5 4 , 0 3 6 2 , 8 3 3 , 2 6 5 6 , 3 8 1, 7 2 2 2 , 7 10 , 5 2 2 6 , 6 0 8 , 6 5 5 2 , 8 3 2 , 7 6 1 6 , 7 0 3 , 0 0 0
MIPS Container Terminal Throughputs in TEUS – 1996 - 2007
90000 80000 70000 60000 50000 40000 30000 20000 10000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Total Local Transit '8865 8865 '13508 '20439 '25875 '31729 '32425 '35010 '39486 '44349 '54088 '62516 '80347 13508 20439 25875 31729 27460 30199 33485 38121 4965 4811 5641 6228 45140 52506 64683 8948 9914 15485 29% Increase over 2006 – 56% Increase in Transit Exports 103% Increase Since MCLI Inception – 2003 806% Increase since MIPS Concession - 1996 Total Local Transit
FPT Maputo Redevelopment Needs Volume Commitment
Is a Fruit Export Terminal required in Maputo by the Southern African Fruit Industry?
Location
Historical Issues
Maputo is much closer to the source areas and will obviously result in lower transport cost. Why was Durban chosen as historical site for investment in logistic facilities?
Political Issues (War, etc.) Bad condition of road to Maputo Border issues Shipping opportunities Access and draft limitations in Maputo Port Lack of cold stores in Maputo No sterilization facilities in Maputo Long rail journey due to delays on Mozambique side No market for rejected fruit
Historical Issues
Political Issues (War, etc.) Bad condition of road to Maputo Long rail journey due to delays on Mozambique side Border issues Shipping opportunities Access and draft limitations in Maputo Port No market for rejected fruit
Current Situation
Political stability New N4 toll road CFM invested in new rolling stock FPT achieved 16 hour transit time Letsitele to Maputo in 2007 Waiting time at border reduced Working hours extended 06h00 – 22h00 Introduction of direct container shipments in 2008 MOL – Far East service MAERSK – Middle East service MPDC invested in new tugs and widened the access channel to accommodate larger vessels FPT repacking service
Competitiveness
Logistics Cost
Production area
Distribution Controlable Influence (distance, etc) Uncontrolable
Current Market
Highly Competitive
Production area Future Markets
Benefits of Using Maputo Port
• Shorter landside transit time • Landside and freight cost benefits • No congestion (unlike Durban) and subsequent transport delays • One stop cold storage and terminal handling service – FPT (do not have to deal with multiple service providers) • Handling services for container and specialized reefer cargo • Full stock visibility • Simplified planning processes for exporter • Quality benefits of cold chain integrity
100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2002
Terminal Volume Throughput
TOTAL
2003 2004 2005 2006 2007
60,000 50,000 40,000 30,000 20,000 10,000 0 2005
Volume by Market
2006 2007
EU/UK MED ME RU
36%
Production Areas
2005 2% 0% 62% Mpumalanga Limpopo Maputo Other
Hinterland Production Volumes
Crop (All) 45000 Sum of Volume 40000 35000 30000 25000 20000 15000
5,5% per annum 2005 - 2010
10000 5000 0 2005 2006 2007 2008 2009 2010 2011 2012 Year 2013 2014 2015 2016 2017 2018 2019 2020 Region Tshipise/Musina Swaziland Senwes Onderberg Nelspruit Letsitele Hoedspruit
Source - CGA
New Plantings
Total 2001 - 2006 Limpopo Province Mpumalanga 13.4 m 5.4m
1.6 m 40% 12%
Distances to Maputo North Prov: 600Km Mpum: 200Km Swazi: 150Km Distances to Durban North Prov: 1000Km Mpum: 600Km Swazi: 350Km Maputo is definitely a more competitive option as far as road/rail transport
Logistical Cost Competitiveness
Cost Chain Element Durban R’ Pallet Maputo R’ Pallet
Transport - Road 400 – 580 220 - 480
Differential R’ Pallet R 53-R188
45 - 180 Transport - Rail 207 – 440 378 – 485 45 - 171 Cargo dues 84 0 84 Container scanning Freight surcharge 0 0 6 70 (6) (70)
Centre of Gravity Analysis
Volumes assumptions 2008
Volume Pallets
Projection 2007 Additional volumes for 2008 UK/NW Continent Far East Mpumalanga volumes to Russia Mpumalanga volumes to Middle East
Total
68 000 7 000 5 000 10 000 9 000
99 000
Lease agreement
• • • • • FPT operates fruit terminal facilities on premises belonging to the Port Authority – Maputo Port Development Company (MPDC).
FPT is required to construct facilities and increase volumes handled through Maputo inline with the expectations of MPDC.
New lease agreement to be long term due to investment requirements.
FPT will be allowed to handle all perishable cargo.
FPT to provide a minimum throughput guarantee.
Current Intake Area
Building G4
Project scope
Convert G5 building to cold store capable to handle sterilization cargo.
Upgrade cold room configuration in building G3 and G4.
Add container loading bays to building G3.
Upgrade plant: Replace compressors, add seawater condensers, coolers, NH3-tanks Upgrade electrical works, switchgear, etc.
Build new forklift battery charging and technical workshop
Proposed layout Phase 1
MGC INDUSTRIAL PROJECTS MGC INDUSTRIAL PROJECTS (PTY) Ltd FPT - MAPUTO NEW COLD STORE FACILITY GENERAL SITE LAYOUT - PHASE 1 IP06 0005 JPDT 08/12/06 1:500 400 N/A DEK DEK R00 A1
Future phases
MGC INDUSTRIAL PROJECTS MGC INDUSTRIAL PROJECTS (PTY) Ltd FPT - MAPUTO NEW COLD STORE FACILITY GENERAL SITE LAYOUT - PHASE 1 IP06 0005 JPDT 08/12/06 1:500 400 N/A DEK DEK R00 A1
MGC INDUSTRIAL PROJECTS MGC INDUSTRIAL PROJECTS (PTY) Ltd FPT - MAPUTO NEW COLD STORE FACILITY GENERAL SITE LAYOUT - TOTAL IP06 0005 JPDT 08/12/06 1:500 402 N/A DEK DEK R00 A1
Competitiveness
Logistics Cost
Production area
Distribution Controlable Influence (distance, etc) Uncontrolable
Stakeholder Commitment
For this investment to be feasible volumes through the terminal need to increase substantially over present volumes, this can only be possible if you the exporter and shipping line give your commitment to exporting fruit through Maputo.
We are fully aware of the many unknowns but we trust that today’s workshop addressed all those.
FPT requires an intent from you as to the volumes per market you will commit on a continuous basis to Maputo in future.
FPT will ensure that the following are in place at all times:
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Terminal remains competitive
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Service levels maintained and improved
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Enough space allocated to handle your fruit
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Ability to handle all shipping modes (Container / Specialized Reefer)
www.mcli.co.za
[email protected]
Tel +27828022338
ACKNOWLEDGEMENTS: ; MPDC; MIPS; FPT