Local news:Expected growth in trade with SADCMauritian importers and exporters trading with Southern African Development Community (SADC) countries will benefit from the exoneration of customs duties and quotas with 12 out of the 14 member states as from the 17th August.The Free Trade Area covers a regional market of 170 potential consumers in Botswana, Lesotho, Madagascar, Malawi, Mauritius, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. However, each of the each country has reserved the right to protect 15% of products it considers as ‘sensitive’. In 2007, Mauritius imported Rs 10.5 billion worth of products from SADC countries and exported for Rs 6.1 billion. Mr. Bert Cunningham has put an end to his contract of employmentMr. Bert Cunningham has put an end to his contract of employment in mutual agreement with the Board of the Mauritius Revenue Authority (MRA) on the 8th August 2008. Mr. Bert Cunningham, a Canadian citizen, acted as Comptroller of Customs on contract with the Government of Mauritius for 4 years before being appointed on contract as Director of Customs by the MRA since its launch in July 2006.Both the board of the MRA and Mr. Bert Cunningham have kept confidential the terms under which the employment came to an end. The MRA has completed its internal investigation into the importation of a TV set by the Director of Customs in his name and the MRA Board has concluded that Mr. Bert Cunningham had committed no wrongdoing in this matter; he has not committed any act or malpractice warranting any internal disciplinary action. The MRA will at the earliest select and recruit a Director having acquired international experience in Customs Administration. In a press statement, the MRA pointed out that this will in no way detract the MRA or impede it in its proven relentless efforts to monitor effective and efficient administration and operation of the revenue laws, to deliver to stakeholders and the general public, the high standard of service they deserve, and to combat corruption, fraud and tax evasion. Port security enhancedTo heighten control and surveillance at the port, a Memorandum of Understanding (MoU) has been signed between the Commissioner of Police, Dhun Iswur Rampersad, and the acting Director General of the Mauritius Ports Authority, D. Suntah for the management of the cameras of the closed circuit television system that is operational in the port premises since a month.The monitoring of all the surveillance cameras has been allotted to the police officers and the National Coast Guard while the five entrance and exit gates giving access to the port installations are jointly under the control of the police force and of the customs services round the clock. Furthermore, in the near future, a Security Unit will be set up by the Mauritius Port Authority and which will be called upon to assist the police in controlling the movement of people and vehicles inside the Port security limits. This Security Unit will also undertake regular patrols to detect and deter unlawful acts with the assistance of the police. Port security enhancedTo heighten control and surveillance at the port, a Memorandum of Understanding (MoU) has been signed between the Commissioner of Police, Dhun Iswur Rampersad, and the acting Director General of the Mauritius Ports Authority, D. Suntah for the management of the cameras of the closed circuit television system that is operational in the port premises since a month.The monitoring of all the surveillance cameras has been allotted to the police officers and the National Coast Guard while the five entrance and exit gates giving access to the port installations are jointly under the control of the police force and of the customs services round the clock. Furthermore, in the near future, a Security Unit will be set up by the Mauritius Port Authority and which will be called upon to assist the police in controlling the movement of people and vehicles inside the Port security limits. This Security Unit will also undertake regular patrols to detect and deter unlawful acts with the assistance of the police. Changes in sea freight pricesShipping agents in Mauritius expect that in August, the ‘bunker surcharge’ will be lowered. It is currently around 750 US dollars per 20 feet container but varies according to shipping lines and routes. A drop due to the dampening of fuel price on the world market.Furthermore, as from the month of August up to the month of December, some shipping lines servicing Mauritius will introduce a ‘peak Season surcharge’ amounting to 200 US dollars on average for a 20 feet container. 3rd Indian Ocean Ports and Logistics 2008 Exhibition and ConferenceThe Professional Association of Freight Forwarders (APT) has been appointed as the official trade organisation for the 3rd Indian Ocean Ports and Logistics 2008 Mauritius Exhibition and Conference which will be held at Hilton Resort on Thursday 30 and Friday 31 October. That event is organized by the Malaysian company Transport Events Management.The conference will be graced by 25 world-class speakers who will give the latest changes and trends on global transport and logistics. Furthermore, 300 senior executive delegates from the world’s leading shippers, cargo owners, shipping lines, freight forwarders, logistics companies, importers/exporters, ports, terminal operating companies, railway operators, port equipment and services suppliers from the USA, Europe, Africa, the Middle East and Asia, are expected to attend. An exhibition space is also planned to accommodate 35 companies which will be able to showcase their products and services. As the official trade organisation of the international conference, our association, APT will have its logo on the event’s official website and printed on the front cover of the conference programme which will be distributed worldwide. APT will be allotted a distribution point at the event registration desk and in addition, all our members will obtain a special 15 % discount off the delegate registration fee. Changes at CustomsMauritius has adhered to the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures.The objectives of this convention are to simplify and harmonise customs procedures and practices among the contracting parties with a view of facilitating international trade. Furthermore, the convention has established best practices in various areas of customs operations, such as risk management, audit based controls, coordinated intervention and appeals on Customs matters. Mauritian traders will benefit from the improved flow of goods and reduced costs; freight forwarders and shipping lines from uniform customs controls and the faster movement of cargoes while the Government will be able to reduce revenue leakages through more effective controls. Another major change has occurred in customs regulations. According to the rules governing the trade of textile and apparels in the SADC Trade Protocol, the Customs Department of the Mauritius Revenue Authority has been designated as the authority to verify, approve and stamp the SADC Declaration of Origin Form (DA-59) which certifies that the finished product is of Mauritian Origin so that the Mauritian exporter can take advantage of preferential tariff entry into the markets of South African countries. Decrease in Freeport activitiesAccording to the latest statistics, during the first quarter of 2008, the FOB value of re-exports through the Freeport, totaled 1 925 million rupees compared to 2 562 million rupees for the same period in 2007.The Freeport operators attribute this 24.9% decrease to a drop in the volume of trade of mobile phones. Apparel articles and clothing accessories still make up the biggest share (524 million rupees) followed by telecommunications equipment and parts (376 million rupees) and fish (351 million rupees). On the other hand, total imports of the Freeport Zone operators stood at Rs 1 192 million during the first three months of 2008, a 21.7% fall over a year. The Mauritius Cargo Community System will be implemented in phasesThe Professional Association of Freight Forwarders of Mauritius (APT) will invest in the shareholding of the Mauritius Cargo Community System (MCCS) as approved by its members during a special general assembly.The MCCS will be implemented in several phases. As from the 15th September for manifests and transshipments; the 15th December has been set as the target date for imports while changes to exports are planned to be brought on the 17th April of next year. The MCCS will contribute to facilitate trade and the smooth movement of cargo, with improved control in line with the European Union and United States regulations. Tracking of containers will also be achieved in real time. Under the forthcoming system, the shipping companies will still send the master manifests at least 24 hours before the arrival at Port Louis of the vessels but the validation will be made by the MCCS instead by the front-end system as it is currently done. Moreover, itemization will be carried out by MCCS and the freight forwarding agent will only have to send the unloading report electronically to MCCS for reconciliation. The MCCS will update and validate the house manifest against the report before submitting the complete and final house manifest to customs through Mauritius Network System. In addition, customs services will define the unstuffing time to the freight forwarding agent before the latter sends any discrepancy report to MCCS to finalise the house manifest. Furthermore, any amendment to manifests will be paperless without any physical submission to customs. Strategic partnership for Airports of Mauritius LtdFrench operator ADP (Airports of Paris) has entered into a strategic partnership with Airports of Mauritius Ltd (AML) to launch a new company with AML as major shareholder, to erect and manage a new terminal to cope with the planned 4 million visitors per year as from 2010 and the growth in airfreight traffic.For example, during 2007/2008, Air Mauritius planes have carried 36 809 tons of goods compared to 33 649 tons the previous financial year. The construction works of the new airport terminal are expected to begin by the end of this year and will be completed in 2010. Furthermore, the ADP Master Plan up to year 2025 makes provision for five remote plane parking stands and greater airport capacity through the extension of the taxiway. Multifaceted strategy to increase productivity at Port LouisTo improve the level of productivity at the Mauritius Container Terminal (MCT) and the Multi-Purpose Terminal, the Cargo Handling Corporation has adopted a multifaceted strategy.The services of a team of experts from Maritime Logistics and Trade Consultants of France, has been enlisted to co-manage operations at the MCT. Furthermore, the implementation of a productivity bonus scheme based on performance and the procurement of additional yard equipment are in the pipeline. New heavy land equipment at Port LouisA tender has just been launched inviting bidders to quote for 4 ‘RTG’ land cranes to handle the increasing volume of boxes at the Container Park of Port Louis.Furthermore 14 truck trailers and 4 reach stackers have been ordered. These are expected to be in operation in about six months. It is estimated that Rs 750 million will be invested in these heavy equipment by the Cargo Handling Corporation. Changes in transshipment at Port LouisShipping line MSC (Meditteranean Shipping Corporation) has taken the decision to shift part of its transshipment activities for the Eastern African ports from Mauritius to Oman due to the irregular productivity at Port Louis.In a statement to the press, the Managing Director of MSC, René Sanson said that the improvement in productivity at Port Louis noted since the beginning of the month of May, came too late. Furthermore, the shipping line wanted to obtain firm commitments from Port Louis that their vessels would be handled as soon as they cast their anchor in the harbour or the number of days required to unload the containers. About 15 000 containers were expected to be transshipped this year. An agreement has already been reached between MSC and the port authorities of Salalah in Oman. However, MSC will start to transship at Port Louis containers from Mozambique and due for Far-east ports, a throughput of 6 000 to 7 000 boxes per year. In addition, depending upon the positive evolution in productivity, CGM-CMA is studying the opportunity of increasing the volume of containers originating from Europe, Asia and the Far East, it transships at Port Louis for the ports of the Indian Ocean. Between 5 000 and 6 000 additional containers are in the pipeline. Virgin Atlantic plans to increase its flight frequency to MauritiusDuring his visit to our island this week, Sir Richard Branson, Chairman of Virgin Atlantic stated that six months only his air carrier has started operating between London Heathrow Airport and Mauritius, he is planning to increase the frequency from 2 weekly flights to 3 or 4 in the near future and even, schedule a daily service in the long term.This will lead to an increase airfreight capacity on the route between United Kingdom and Mauritius. Virgin Atlantic fleet consists of nine Airbus A340-300, 13 Boeing 747-400 and 7 Airbus A340-600 (18 additional planes of this type have already been ordered). Sir Richard Branson told the local press that he launched Virgin Atlantic because he “hated” flying other airlines. Productivity improves at Port LouisThe three shipping companies, Maersk, CGM-CMA and MSC have postponed to the end of July 2008, their plan to increase their freight rates if the Cargo Handling Corporation does not take corrective action to improve the productivity at Port Louis.Maersk, CGM-CMA and MSC initially set the deadline on the 15th May. Brajen Hazareesingh, the President of the Professional Association of Mauritian Shipping Agents (APAMM), told us that “the shipping lines have noticed an upward shift in the productivity, raising from 10 movements per hour to 15 for the time being and this tendency is expected to gradually move up in the near future.” Customs clerk and agent exams to be held in NovemberThe Director of Customs, Mr. Burt Cunningham had recently a meeting with the members of the managing committee of APT, the Professional Freight Forwarders Association of Mauritius.He said that through such meetings, the MRA customs aims at strengthening partnership with all stakeholders in view of combating fraud and ill practices. He stressed the need to professionalise the sector and the people involved: brokers, customs agents and clerks, adding that their knowledge and skills would have to be tested at one time or the other, through exams but made it clear that he does not have the intention to throw anyone on the street. He asked the APT to take the responsibility of holding courses for both agents and clerks. The definitions of the work of customs agents and clerks, the strategy, together with a draft proposal of the curriculum, will be dispatched by MRA Customs to the APT for study and approval. The syllabus will then be finalised by a joint committee APT/Customs. The courses are tentatively scheduled from June to October. It has also been agreed that the Creole language could be used during exams for customs clerk to allow those who do not have a very good academic background, to be at ease. These exams will be run by Customs and might be held in November at the New Customs House and for those not succeeding, another examination session will be run in May of next year so that by July 2009, the Customs can officially appoint the customs agents and clerks. Moreover, due to the progression between the profession of customs clerk-customs agent and that of customs broker, in the future, those wishing to be appointed as brokers, will have to undertake the different stages of the profession beginning as clerk. In addition, regular refresher courses will be held in favour of those who are already licensed to keep them abreast about the latest changes. The renewal of their licence will also depend on the number of hours of training attended and their participation in the refresher courses. CHC improves its financial performanceThe Cargo Handling Corporation has been able to achieve a financial turnaround in 2007, ending 2006-2007 with a profit of Rs 16 million while the previous financial year 2005-2006, it incurred losses amounting to Rs 38 million.The recent taking over and management of the Empty Container Depot by the Cargo Handling Corporation from the Mauritius Ports Authority, will contribute to enhance its profit level. Travelling gantry crane to be repairedThe second new travelling gantry crane is expected to be operational by the end of the month of April. This would bring the number of traveling cranes at Port Louis harbour to five since the other new one has already started handling containers since the 15th March.Furthermore, as soon as the fifth travelling gantry crane will start its operations, one of the 3 ‘old’ cranes bearing the code name of ‘crane 102’ will be stopped for repair and maintenance. Crane 102 was damaged in year 2003 by strong gusts. Its bridge which moves over the container vessel to hoist boxes, will be fixed. The repair works are expected to take about 21 days. Moreover, depending upon the lead time that would be required and the volume of containers to be handled, the Mauritius Ports Authority may implement the project of upgrading the ‘old’ traveling gantry cranes to improve their number of movements per hour. Airport cargo warehouses need to be extendedThe number of flights to and from Mauritius is expected to grow annually by 9.5% if the objective set by the government of 2 million tourists by year 2015, is reached.Currently, SSR International Airport is serviced by more than 100 international flights each week. Statistical projections indicate that the total number of regional and long haul flights will attain 45 176 in 2015 compared to 19 926 in 2006. The extension of cargo warehouses and logistics facilities in the airport area should be rapidly considered to enable the efficient flow of airfreight. Moreover, new cargo sheds would give the opportunity to new air carriers landing at Plaisance airport, to store cargo to be transported according to the availability of space in the hold of the planes. The deferred uplift of cargo will contribute to curb down airfreight tariffs and contribute to boost trade. Mauritius to improve its logistics performance indexRs 5 billion will be invested in the port during years to improve port facilities through the extension of the Mauritius Container Terminal, the development of a fishing port and further dredging works for large container vessels.According to economic analysts of the Mauritius Commercial Bank, it is essential that reforms towards infrastructure enhancement be coherently designed and rapidly executed. They recommend that “strategic alliances with renowned port operators should also be pursued in order to exploit the highest level of expertise and skills to improve the competitiveness of the port, alongside raising the investment capacity.” They are of opinion that models or hybrid options of Public-Private Partnership and common risk-sharing arrangements between different port entities could be envisaged so as to enhance port efficiency and to provide a basis for much-improved trade and economic growth patterns. According to the World Bank, in 2007, Mauritius was ranked 132 out of 150 countries on the basis of the logistics performance index. On a scale of 5, its infrastructure was rated 2.29 compared to 4.27 for the No. 1 country, Singapore, 2.2 for its international shipments (4.04 for Singapore), 2.67 for its domestic logistics costs while it is 2.7 in Singapore and 2.33 for the timeliness in our island (4.53 at Singapore). Container traffic on the upContainer traffic at Port Louis is growing fast since the beginning of this year. According to latest statistics, during the month of February 2008, the number of containers unloaded or transshipped by the 37 container vessels that cast their anchor at Port Louis, amounted to 21 855 TEUs, a 48.66% rise compared to February of last year when 14 700 boxes were handled in the harbour.Out of these figures, 6 015 TEUs transited through Mauritius while in February of last year, 4 488 TEUs were transshipped. The two new travelling cranes that are now in operation in addition to the three existing ones, will contribute to increase the handling capacity of containers. A strategic partner to upgrade the portThe web site of the Professional Association of Freight Forwarders (‘Association Professionnelle des Transitaires’) was officially launched by the Deputy Prime Minister and Minister of Finance, honourable Rama Sithanen at Labourdonnais Waterfront Hotel on Wednesday 26th March.He stated that discussions have already been initiated on the best way to bring in a strategic partner to upgrade the port. Furthermore, he highly commended the initiative of APT to create a web site to foster communication and expressed the wish that this tool is efficiently used to improve the quality of services. A Memorandum of Understanding, the first with a stakeholder in Mauritius, was also signed by the Director of Customs, Bert Cunningham with our association for greater cooperation and to remove any red tape that may hinder the movement of goods. The Director of Customs told that new Customs House will be operational before the end of this year and that his services will implement in the near future a web site so that traders of reconditioned vehicles could determine at distance whether in Mauritius or abroad, their value before ordering them. 74.4 % of container traffic held by MSC and Maersk in 2006/7According to statistics on container traffic, during financial year 2006/7, out of a total of 280 380 TEUs, shipping line MSC had a market share of 43.6 %, having carried 122 211 TEUs. Maersk holds the second position on the log with 30.8 % of the total volume of containers, 86 411 TEUs were loaded on its vessels.These figures cover both captive (imports and exports) as well as transhipped containers. Among the other shipping companies calling at Port Louis, French Line CGM-CMA managed to break through at 6.1 %( 17 016 TEUs) followed by Mitsui OSK Lines (4.6%), Coraline (4.2 %), Delmas (3.9 %), PIL (3.8 %), DAL (1.4 %)... Port Louis, second sub-Saharan Africa container portPort Louis has become the second container port in sub-Saharan Africa where 5th generation container vessels can be handled.Ships with a draft of up to 13 metres can cast their anchor at the Mauritius Container Terminal. Dredging works have been undertaken to increase the depth of the navigational channel and turning basin to -14.5 metres and -14.0 metres at berth. New transshipment tariffs in AprilThe rise in transshipment tariffs will be implemented in April when the two new travelling gantry cranes will be fully operational. The transshipment of a 20 feet container will cost Rs 1440 whereas it currently amounts to Rs 840 for a laden container and Rs 660 for an empty one.The future uniform tariff will contribute to curb down the transshipment of empty containers at Port Louis. Moreover, to attract high volume, a 5% discount will be offered to shipping lines transshipping between 1000 and 10 000 containers a year, 10% to those totaling between 10 000 and 20 000 boxes; the price cut will reach 20% for those exceeding a throughput of 20 000 containers. According to the Cargo Handling Corporation, the tariffs stand out as the lowest in the Indian Ocean. During 2006-2007, 100 798 containers had been transshipped at Port Louis, a 25% growth compared to the previous financial year. Future changes in NEMO serviceShipping line CMA CGM plans to relocate its NEMO service from Port of Auckland and consolidate on the Port of Tauranga in New Zealand. The NEMO service of CMA CGM covers the route North Europe - Mediterranean Sea - Red Sea - Indian Ocean - South East Asia - Australia / New Zealand. The vessel calls at Port Louis 28 days after leaving the port of Tilbury in Great Britain.The Port of Tauranga Chief Executive Mark Cairns stated to the press that "CMA CGM has recognised the Port of Tauranga as a major North Island distribution hub, serving the Auckland market through a unique rail partnership with a rail linked inland terminal (MetroPort Auckland) in the centre of Auckland's manufacturing and distribution centres.” This new service will commence next month and add an additional 52 vessel calls per year. |