Local news:Company FTL Shipping launchedThe FTL group expands its activities. In addition to freight forwarder FTL, a new company, FTL Shipping has been launched since last month to act as a shipping agent.The two companies will have different management teams and operate autonomously from each other. Furthermore, FTL Shipping will represent the roll on, roll off vehicle transportation vessels, Höegh Autoliners while the shipping agency Southern Marine will be used in the near future as a brand name. A spokesman from FTL Shipping told us that “we currently cater for bunkering services of vessels calling at Port Louis an on and off basis but also for vessels carrying grains for company Les Moulins de la Concorde. We are also looking forward to develop our line of business.” A sister company FTL Mada provides ship agency services in Madagascar. Trade union suggests aggressive marketing in ChinaThe trade union Port Louis Harbour and Docks Workers Union has expressed the wish that the government and the management of the Mauritius Ports Authority initiate an aggressive marketing action in China to reinforce the positioning of Port Louis as a regional hub for transhipment.The president of the trade union, Alex Marie is of opinion that the government should try to reap the benefits of the excellent political and trade relationships existing between China and Mauritius. Moreover, the trade union has started meeting political decision-makers in the government to sensitise them about the issues of concern raised by the venue of strategic partner in the port, stressing that any foreign company may attempt at monopolizing Port Louis harbour. The Port Louis Harbour and Docks Workers Union recommends that not only economic but also social aspects should be looked into since that a strategic partnership might axe jobs. Trade union suggests aggressive marketing in ChinaThe trade union Port Louis Harbour and Docks Workers Union has expressed the wish that the government and the management of the Mauritius Ports Authority initiate an aggressive marketing action in China to reinforce the positioning of Port Louis as a regional hub for transhipment.The president of the trade union, Alex Marie is of opinion that the government should try to reap the benefits of the excellent political and trade relationships existing between China and Mauritius. Moreover, the trade union has started meeting political decision-makers in the government to sensitise them about the issues of concern raised by the venue of strategic partner in the port, stressing that any foreign company may attempt at monopolizing Port Louis harbour. The Port Louis Harbour and Docks Workers Union recommends that not only economic but also social aspects should be looked into since that a strategic partnership might axe jobs. MFD undertakes 4th phase of its developmentThe Mauritius Freeport Development Company (MFD) plans to complete the 4th and last phase of its logistics platform by the year 2012. It has obtained 25 acres of land in the port area since the start of its activities in 1998 and has progressively extended the diversity of its warehousing facilities.The company has up to now achieved 70% of its logistics platform and it will cover a total surface area of 100 000 square meters in 2 years time. MFD is actively prospecting Freeport operators in Dubai especially those re-exporting goods to the African market, so as to attract them to Mauritius. Furthermore, the company expects that the forthcoming launch of the Jin Fei zone at Riche Terre will open it a new window of opportunities and have a positive impact on its turnover. Southern Marine exclusive representative of Höegh AutolinersSouthern Marine has been appointed as the exclusive representative for all operations of the shipping line Höegh Autoliners in Mauritius.Höegh Autoliners based in Norway, stands out as one of the leading global providers of roll on, roll off (Ro/Ro) vehicle transportation services. The company has a fleet of approximately 70 Pure Car and Truck Carriers (PCTCs) which transport cars, heavy machinery and rolling goods. One of its vessels Höegh Brasilia is expected to call at Port Louis on the 17th February. The shipping company launched by the Höegh family, is active in maritime transportation since 1927. It is now owned by Leif Höegh & Co. (62.5 per cent) and the Danish A.P. Moller - Maersk A/S (37.5 per cent). Höegh Autoliners welcomed A.P. Moller - Maersk in 2008 in its shareholding and at the same time, made the acquisition from A.P. Moller – Maersk of 18 car carriers (including six newly-built vessels). The company's fleet will reach 85 ships in 2012. Customs key performance indicatorsLast year, at the Customs, the Mauritius Revenue Authority (MRA) established targets for a number of key performance indicators and measured them.The MRA set a target of 3 days to issue a tariff ruling and managed to achieve it in 2.5 days on average last year. Furthermore, the average dwell time for sea cargo was of 3 hours in year 2009, an improvement of 1 hour compared to the targeted objective of 4 hours. Concerning air freight, the average dwell time was in line with the target set at the beginning of the year (45 minutes). Finally, according to MRA, the export clearance time last year for sea cargo was on average of 7 minutes, one minute better than the initial objective of 8 minutes. Port Louis may handle 800 000 TEUs by 2015According to the international consultants Halcrow, container traffic at Port Louis harbour will rise to 800 000 TEUs by 2015 and over one million TEUs are expected to be handled by 2030.In this context, to match the future change in vessel profile and to attract larger container vessels, the Mauritius Ports Authority will extend the length of the existing berth by about 150 metres and then, to strengthen the quays so as to increase the depth of the seabed to 16.5 metres. These changes will allow two large vessels of 8 000 TEUs to cast their anchor. Furthermore, the container stacking yard will be expanded to accommodate in the first phase about 750 000 TEUs. Additional future infrastructural developments include the extension of Quay 1 to cater for the growing traffic of coal required by electricity generating plants and the setting up of a fishing port near the Bulk Sugar Terminal to give a boost to the seafood hub. Finally, the consultants will also assess the impact of fully extending the berth at the New Container Terminal to 1000 metres. Port Louis may handle 800 000 TEUs by 2015According to the international consultants Halcrow, container traffic at Port Louis harbour will rise to 800 000 TEUs by 2015 and over one million TEUs are expected to be handled by 2030.In this context, to match the future change in vessel profile and to attract larger container vessels, the Mauritius Ports Authority will extend the length of the existing berth by about 150 metres and then, to strengthen the quays so as to increase the depth of the seabed to 16.5 metres. These changes will allow two large vessels of 8 000 TEUs to cast their anchor. Furthermore, the container stacking yard will be expanded to accommodate in the first phase about 750 000 TEUs. Additional future infrastructural developments include the extension of Quay 1 to cater for the growing traffic of coal required by electricity generating plants and the setting up of a fishing port near the Bulk Sugar Terminal to give a boost to the seafood hub. Finally, the consultants will also assess the impact of fully extending the berth at the New Container Terminal to 1000 metres. Port Louis may handle 800 000 TEUs by 2015According to the international consultants Halcrow, container traffic at Port Louis harbour will rise to 800 000 TEUs by 2015 and over one million TEUs are expected to be handled by 2030.In this context, to match the future change in vessel profile and to attract larger container vessels, the Mauritius Ports Authority will extend the length of the existing berth by about 150 metres and then, to strengthen the quays so as to increase the depth of the seabed to 16.5 metres. These changes will allow two large vessels of 8 000 TEUs to cast their anchor. Furthermore, the container stacking yard will be expanded to accommodate in the first phase about 750 000 TEUs. Additional future infrastructural developments include the extension of Quay 1 to cater for the growing traffic of coal required by electricity generating plants and the setting up of a fishing port near the Bulk Sugar Terminal to give a boost to the seafood hub. Finally, the consultants will also assess the impact of fully extending the berth at the New Container Terminal to 1000 metres. Mauritius Logistics Performance IndexIn its ‘2010 Logistics Performance Index’, the World Bank has ranked Mauritius at the 82nd place among 155 countries. Its overall score of 2.72 is equivalent to 55.3% of the highest performer, Germany.Mauritius has been ranked as the 127th country on the basis of ‘Frequency with which shipments reach the consignee within the scheduled or expected time’, 100th on ‘Ability to track and trace consignments’, 97th in ‘Competence and quality of logistics services’, 33rd on ‘Ease of arranging competitively priced shipments’, 96th in ‘Quality of trade and transport-related infrastructure’ and 50th for the ‘Efficiency of its customs clearance process’. The survey was conducted with 1 000 international freight forwarders. Somalia was last on the list. Uganda, along with Brazil, China and Bangladesh, moved up from their rankings compared to the first survey carried out in 2007 as part of an overall trend toward better trade logistics. One of the survey’s goals is to identify the weakest links in the logistics chain, so countries can fix them, says World Bank trade economist Monica Alina Mustra, a co-author of an accompanying report, “Connecting to Compete 2010: Trade Logistics and the Global Economy.” Freight Rebate Scheme will be abolishedThe Freight Rebate Scheme introduced in 1991 to subsidise freight costs of fruits exported by Mauritian producers, will be abolished this year. The Ministry of Agro-industry feels that it has not contributed to achieve the set objective of boosting the volume of fruits exported. Furthermore, the World Trade Organisation has also recommended that the production of fruits for export should be a viable enterprise without any financial help.Since 1991, the plan has not attracted new operators. About only ten firms were enjoying the subsidy totalling Rs 10 million each year and during the last 3 years, the amount ear-marked under the Freight Rebate Scheme was around Rs 4 million a year. Exported litchis and mangoes were granted a 25% subsidy on freight and pineapples 50%. The fruits were freighted mainly to European countries but also to Russia and Dubai. Several laws amendedSeveral laws including the Customs Act, Excise Act and Mauritius Revenue Authority Act have been amended to ensure that the trade tax policies of Mauritius are fully compliant with World Trade Organisation requirements.Provision has been made to enable the Director General of MRA to cancel a Bill of Entry in the Customs Management System in the event a declarant fails to make an application for cancellation for non-realisation of a transaction within the time limit. In accordance with Article 7 of the WTO Valuation Agreement, provision has also been made in the Customs Act to disallow the use of minimum value for valuation of goods for duty purposes. Furthermore, the reporting of ship’s stores by incoming vessels, will now to be done to the Director-General of MRA instead of the Director of shipping. In the same vein, vessels leaving for fishing campaigns on the high seas will be issued with ship’s stores. And provisions have been made for imposing fines on vessels returning to the port or airport in Mauritius due to unforeseen circumstances such as bad weather, with an unreasonable deficiency in their stores. The law now provides for the introduction of a “Customs-Approved Storeroom” (CASR) system for aircraft supplies, similar to a bonded warehouse that enables airlines to store goods for sale to passengers on aircrafts, without payment of duty, excise duty and taxes. The objective is to bring the control of aircraft supplies in line with internationally accepted practice. Finally, the law has been amended to simplify the procedures for transfer of excisable goods from one place to another within the country. A growth rate of 6% expected in the logistics sector in 2010The outlook for the logistics sector of Mauritius during year 2010 looks bright. A growth rate of 6% is expected this coming year for activities related to transport, storage and communications. This rate will be higher than the 5.3% growth rate achieved in 2009. The tourism sector and the forthcoming World Cup Football competition in South Africa will be the main driving forces behind the demand for more logistics services.According to the Central Statistical Office, the Gross Domestic Product of Mauritius will increase by about 4.3% this year compared to 2.8% in 2009. Furthermore, during 2009, imports of goods measured on an f.o.b. basis, fell by 8.4% while in 2008, a growth of 1.3% was recorded. On the export side too, an 8.2% decline was also noted. New certification standards for import of foodstuffsThe Ministry of Consumer Protection and Citizens Charter has expressed the wish to take appropriate actions without delay to ensure national health and security.The certification standards and norms, according to which Mauritius imports foodstuffs, will be reviewed so that essential phytosanitary and usability standards are implemented in line with European norms. This change in strategy has been triggered by the introduction of new products on the market coupled with the changing buying habits of both local consumers and tourists who are in quest of innovative foods and drinks. 4th Indian Ocean Ports and Logistics Exhibition and ConferenceThe 4th Indian Ocean Ports and Logistics 2010 Exhibition and Conference will be held in Mauritius at Hilton Resort and Spa on Thursday 25 and Friday 26 March 2010.Thirty world-class conference speakers spercialised in global transport and logistics will be present at this conference organised by the Malaysian company Transport Events. Furthermore, 250 senior executive delegates from companies involved in freight, shipping, logistics and related activities in the United States, Europe, Africa, the Middle East and Asia, are also expected to attend. In addition, an exhibition area is planned to enable 35 exhibitors and sponsors to showcase their latest products and services so as to create awareness or to attract new customers. New warehouse to be erected in the FreeportThe state-owned company, BPML Freeport Services Ltd has initiated tender procedures for the construction of a new metallic warehouse that will cover a surface area of 9 000 square meters.The new warehouse will have two office blocks situated at both extremities near the loading bays. Furthermore, an existing warehouse of 5 000 square meters will be relocated near the forthcoming one in the Zone 6 of the Freeport area. By locating the warehouses close together, the authorities hope that such a strategic move will enable Freeport operators to save time when handling their containers. Moreover, the new premises will also allow them to show case the products they re-export. BPML Freeport Services Ltd already manages several buildings including the Trade & Marketing Centre, as well as warehouses in the Freeport of Port Louis. Re-exports through Freeport drop by 19.9%From the 1st January to the 30th September of this year, the value of total imports of the Freeport Zone increased by 10.8% compared to the corresponding period in 2008, to attain Rs 4 219 million.Fish and fish preparations topped the list with a CIF value of Rs 1 714 million representing 33 561 tons, followed by ‘Chemicals and their related products’ (Rs 1 140 million) and ‘Textile yarns, fabrics and made-up articles’ (Rs 189 million). However, re-exports through the Freeport amounting to Rs 5 282 million, showed a 19.9% decrease compared to the first nine months of last year. It is worth noting that re-exports of ‘Machinery and transport equipment’ especially mobile phones, which reached Rs 1 755 from January to September 2008, dropped to Rs 225 million during the first 9 months of 2009 while ‘Beverages and tobacco’ fell from Rs 318 million to Rs 211 million during the same period. Port performance at the National AssemblyIn a statement in the National Assembly this week, the Deputy Prime Minister, Minister of Tourism, Leisure and External Communications, Honorable Xavier Luc Duval said that crane productivity has now reached 21 moves per hour and the waiting time of ships has fallen from a high of 48 hours to 3 hours.He also pointed out that Government recently increased the stevedoring and the shore charges “because we were ridiculously cheap that is why we did it. Even with this increase, we are the cheapest port in the region. In fact, we are not only the cheapest but we are by far the cheapest port in the region even with this increase and we are by far the most secure port in the region and we are upgrading and waiting for the upsurge to be able to service a whole new range of trade ships that come to Mauritius.” “This increase of 18% is good and, as I said, it is going to have a very minimal impact on the cost of living. A small fraction of the percentage in terms of increase in the cost of living in Mauritius; and would you believe it, for the last 30 years there has been no increase in port charges as far as the shore charges are concerned and 10 years as far as the stevedore charges were concerned.” Bigger container vessels to come to Port LouisThe Mauritius Ports Authority intends to increase the depth of the quay of the ‘New Container Terminal’ and also extend the area devoted to the container park by six acres.The dredging works will enable bigger vessels of a capacity of 8 000 containers to cast their anchor at Port Louis in the near future. Currently, ships carrying 5 000 containers or less, can berth at the harbour. The new developments will require investments estimated at Rs 3 billion. The contract following a public tender is expected to be allocated in August 2010 and the works to begin early 2011 and completed by the end of 2012. Cargo Handling Corporation increases its tariffsThe Cargo Handling Corporation Ltd will increase its handling charges as from Monday 16th November 2009.The charges include rates for labour and equipment as well as all supervisory costs, travelling, overtime and other allowances. Stevedore charges for the handling of containers (from ship to ondock storage area or vice versa) will be revised for a laden container from 60 to 74 US dollars per TEU or less and from 120 to 148 US dollars for containers of more than 20 feet. In the case of empty containers, the tariffs will be raised from 35 to 43 US dollars per TEU or less and for containers of more than 20 feet from 67 to 82 US dollars. Furthermore, shore charges for imported laden containers, will be Rs 2 100 per TEU or less instead of Rs 1 620. For more than 1 TEU, the shore charges will go up from Rs 3 240 to Rs 4 200. CHC will apply the same tariffs on exported laden containers. A bulk sugar carrying vessel called at Port Louis for the last timeMV Poseidon SW was the last the bulk sugar carrying vessel to call at Port Louis to take its consignment of 42 000 tonnes of raw sugar. The ship left the harbour on November 5 for its journey to Great Britain.The Bulk Sugar Terminal (BST) of Mauritius, the third largest in the world, will now close down after nearly 30 years of operation. The construction of the BST on the South Western part of the harbour over a surface area of about 24 acres, started in 1977 and was completed in August 1981. Its two sheds had a storage capacity of 175 000 tonnes each. Raw sugar transported by lorry, was unloaded at the rate of 1 440 tonnes per hour. Approximately 14.4 million tones of raw sugar had since been exported from Mauritius. Sugar is now refined in Mauritius and the centralization of sugar factories into larger units has made them move from a sugar production base to a cane production base with other by-products like ethanol. FOA intends to erect a warehouse in the FreeportThe Freeport Operators’ Association has initiated talks with the Board of Investment and Business Parks of Mauritius Ltd, for its project of constructing a warehouse in the Freeport area. A strategic location near the former building of the Mauritius Freeport Authority has already been selected.The members of the Freeport Operators’ Association have expressed their willingness to participate in the construction costs of the new warehouse through the build, own and operate mode. In addition, the project will comprise a number of offices and a showroom to promote the products they market. Mauritius, the first country to implement N-CENMauritius has been designated by the World Customs Organisation as the first country to implement the National Customs Enforcement Network (N-CEN).N-CEN can be defined as a national database on persons, companies, means of transport, courier and seizures. The system also includes communication, comprehensive system management and analysis tool. Furthermore, the Mauritian customs will also participate in the operation geared towards addressing the threats and challenges of commercial fraud in the region posed by South Africa which will be hosting the FIFA World Cup next year. Transshipment activities hit peakTransshipment activities at Port Louis harbour during financial year 2008/ 2009 hit a never reached before peak of 127 251 containers, a 17.5% growth compared to the previous financial year (2007/ 2008) when 108 321 containers transited.The competitive tariffs and the strategic positioning of Mauritius in the Indian Ocean as a gateway to Africa for Asian companies, have contributed to the rise in the volume of containers transshipped here. However, during the last financial year, the global economic crisis impacted negatively on the imported and exported goods. Imported containers coming mainly from south-east Asian countries and Europe, dropped by 7.4% compared to financial year 2007- 2008. On the export side, the fall was around 0.6%. Nevertheless, the transshipment and cruise sectors contributed heavily to Rs 514 millions profits generated by the Mauritius Ports Authority during financial year 2008- 2009. Refined sugar exported in containers from Mauritius to Europe15 000 twenty feet long containers of refined sugar will be exported to Europe each year.The refined sugar produced by the refineries situated at Savannah (Compagnie Sucriere du Sud) and at FUEL, will be placed in specialised containers and transported by lorries to the container terminal in Port Louis. The refined sugar will be commercialized by Sudzucker, the largest sugar distributor in Europe for an initial period of 6 years, from 2009 to 2015 with possibility of renewal of the contract. Mauritius produces approximately 500 000 tonnes of sugar yearly out of which 80% will be refined. According to the latest estimates, the Mauritius Chamber of Agriculture expects that 490 000 tons of sugar will be produced for the crop year 2009. The balance (up to 120 000 tons) will be marketed as special sugars. Trade inflows from China expected to growThe Mauritius Jinfei Economic Trade and Cooperation Zone which will be constructed at Riche Terre, is expected to attract around Rs 20 billion of foreign direct investment over the next five years.The Chinese investors aim at seizing the preferential market access that Mauritius offers especially to COMESA and SADC countries and will use it as a hub to do business with Africa. The project is driven by 3 companies: the Taiyuan Iron and Steel Co. Ltd, the Shanxi Coking Coal and the Tianli Group with the China Africa Development Fund as equity partner. The project will consist of two phases. The first phase due to be completed by 2012, will be developed over 70 hectares of land and will comprise a road network and utilities infrastructure, an industrial zone, a business and hospitality centre. The 2nd phase which will be initiated by the end of 2010 on 141 hectares of land, will be devoted to firms involved in the import or production of solar power generation equipment, ocean products processing, medication and medical instrumentation, stainless steel product processing… Stronger trade ties between Mauritius and PakistanTrade relationships between Pakistan and Mauritius are expected to boost following the forthcoming 8th Session of the Joint Working Group between the two countries which will be held from the 5th to the 7th October in Mauritius.Several trade issues pertaining to information and communication technology, education, research, technology and health services, are on the agenda. Furthermore, the Free Trade Agreement between our 2 countries will be discussed so that these preferential exchanges in the future cover all trades. It is worth pointing out that a Preferential Trade Agreement between Mauritius and Pakistan was signed in July 2007. Restrictions on the movement of heavy goods vehiclesHeavy goods vehicles will no longer be able to use the main roads of Mauritius between 6h30 and 9h as from Monday 21st September.Lorries of more than 3.5 tons will be severely impacted especially those transporting containers. Five zones have been delimited. The motorway M1 between Phoenix roundabout and that of Quay D is concerned as well as the section of the old A1 road stretching from St. Jean roundabout to the Government House in Port Louis via Rose Hill, Beau Bassin or Coromandel and vice versa. Furthermore, the traffic restriction on heavy goods vehicles will also apply in both directions on the A14 road which links Rose Hill and the M1 motorway as from Vandermersch roundabout but also on the part of the road known as the B1 road from the Rose Hill Police Station and which gives access to the M1 motorway at Reduit. Finally, the fifth zone that limits the crossing of vehicles of more than 3.5 tons, is road B120 namely Martindale road near the State House between the roundabout of the University of Mauritius and the M1 motorway. Re-exports through Mauritius Freeport fall by 16%Re-exports through the Freeport of Mauritius have suffered a 16% drop over one year. During the first semester of 2009, Rs 3.3 billion worth of freight transited through the Freeport compared to Rs 4 billion during the same period the previous year.A sharp decrease due to the fall in the re-exportation of mobile phones but also, owing to customers switching to the Freeport of Dubai. Some Mauritian Freeport operators complain that regional buyers experience difficulties paying in cash, local banks being reluctant to accept cash deposits exceeding Rs 300 000 unless they become aware of the funds sources in accordance to the Anti- Money Laundering Act. During the first semester of 2009, re-exports of telecommunications equipment amounted only to Rs 37 million while they reached Rs 749 million in the first six months of 2008. Industrial machines and parts also faced a similar downturn from Rs 934 million to only Rs 132 million. Moreover, re-exports of textile products and accessories have shown a fall of Rs 200 million from one year to another during the first semester from Rs 1 billion in 2008 to Rs 844 million from January to June of 2009. On the other hand, re-exports of chemical products and fishes have gained momentum this year. Europe and Asian countries remain our main markets. Freight transport by road statistics unveiledAccording to latest statistics on business activities undertaken in Mauritius, a total of 8 762 licences have been granted in all the districts of Mauritius for the transportation of freight by road.The registered lorries and vans are based mainly in Port Louis (1 764 licences), followed by the district of Pamplemousses (1 624) and the Plaines Wilhems (1 610). The lowest numbers of operators are located in the districts of Black River (119) and Savanne (381). MFD turnover on the up for the first 6 months of 2009Freeport developer Mauritius Freeport Development (MFD) has recorded a 15.3% growth in its financial turnover during the first six months of 2009.From January to June of this current year, MFD achieved a turnover of Rs 182.8 million compared to Rs 158.5 million generated in the first semester of year 2008. The rise of activities linked to the seafood industry, stands out as one of the contributory factors of this performance. Furthermore, during that period, operational profits of MFD rose from Rs 25.6 million to Rs 47.9 million. 24.6% fall in cargo uplifted for Air MauritiusAir Mauritius has recorded a sharp decrease of 24.6% in the amount of cargo it uplifted during the first quarter of its current financial year 2009- 2010 as compared to the corresponding period last year.During April to June 2009, 6 049 tons of cargo were uplifted by the planes of the national carrier, a trend also experienced by other air companies. Furthermore, the Air Mauritius group made a loss of 13 million euros while the company registered a loss of 13.2 million euros, after accounting for the loss of 4.8 million euros arising from the unwinding of 5 % of the hedge portfolio and an amount of 12.2 million euros on fuel hedge payments. The turnover of the company was 19.5% lower than during the first quarter of the previous financial year. The drop in revenue is attributable to the reduction in demand both passenger and cargo due to the combined effects of the global economic downturn and of the influenza H1N1 pandemic. A National Strategic Plan for Mauritius Shipping SectorA group of international consultants from Fisher Associates is preparing the National Strategic Plan the shipping sector of Mauritius for the period from 2009-2015. A first draft will be issued by the second week of August.This Strategic Plan will contribute to develop a sustainable and viable national approach to the sector. A validation workshop was held last month at the Mauritius Maritime Training Academy at Pointe aux Sables. Stakeholders, from both public and private sectors, shared their views on strategic issues and gave their comments or expressed their proposals. The National Strategic Plan also aims at coming up with different strategies to achieve the right focus and balance of services for the shipping sector. Among the topics that will be covered: the scope and extent of the shipping sector, a maritime administration for Mauritius, the flag policy of the country, the development and marketing strategies for the Mauritius Register of shipping, policies and development, maritime cluster development and training. Boost to Freeport operatorsThe Finance (Miscellaneous Provisions) Bill No. XVI of 2009 has amended the Freeport Act. The power given to the Board of Investment to grant authority to Freeport operators to undertake paper trading activities, has been removed. Authority already granted will be made to lapse on 30 June 2011 so as to give ample notice to these operators. Until that date, paper trading activities carried out, will be exempted from income tax.The Freeport Licence and the Freeport Certificate have been combined into a single authorization, a Freeport Certificate which now allows Freeport operators to sell on the local market up to 50% of their total transactions instead of 20% previously. Furthermore, the Customs Act has been amended to enable motor vehicles entering in bonded warehouse up to 31 December 2009, to remain there up to 31 December 2010. This measure is aimed at relieving importers who are unable to sell their vehicles during the current difficult period. Exports from Mauritius pick upExports by Mauritian enterprises are picking up. From January to June 2009, goods worth a total of Rs 17 533 million had been exported, a 4.9% growth compared to the corresponding period last year (Rs 16,715 million).A break down of data indicate that manufacturing companies in the Textile and Clothing sectors have exported 3.4% more than in 2008, an increase from Rs 11 467 million to Rs 11 861 million. The highest rise has been recorded by firms producing optical goods, the value of these items has increased by 58.1% followed by the export of fish and fish preparations which have registered a growth of 31.2% while the exports of pearls, precious and semi-precious stones showed an increase of 2.8%. Although the United Kingdom, France and USA remain the main export markets, exports from Mauritius to the United States from January to June 2009 have witnessed a remarkable growth of 31.9% as compared to the same period in 2008. A study on boosting the competitiveness of the Freeport of MauritiusA study has been undertaken by Cofinter, a firm specialised in logistics, with the objective of making the Freeport of Mauritius the leading logistics platform in the Indian Ocean and to create a mutually beneficial synergy between the different players of the Freeport.Confinter has made several recommendations evolving around a better strategic outlook for the sector, how to ensure the smooth movement of goods, competitive regulations and new logistic services especially those promoting value addition in a very short time frame and consolidation of the flux. Furthermore, during this week, a workshop has been held by the Board of Investment with the active participation of different Freeport operators so as to define an action plan for the next six months and implement the strategic proposals of Cofinter. Among the barriers to the competitiveness of the Freeport of Mauritius, the current legislation which has set that 40% of goods of the operator, must transit through the Freeport and the application of the 15% corporate tax that has been deferred. Transhipment on the rise at Port LouisTranshipment traffic at Port Louis is on the rise. During the first six months of this year, 54 113 TEUs have transited through the harbour, a 15% growth as compared to last year (47 000 TEUs).The containers of the two shipping lines which use Port Louis as a hub, Maersk and Mediterranean Shipping Corporation were routed to East African ports as well as to the neighbouring islands of Reunion and Comoros and even to Australia. The two additional travelling gantry cranes and greater depth of quays have attracted vessels of greater capacity, some of more than 5 000 TEUs to Port Louis, enabling the shipping lines to reap the benefits of economies of scale. The Mauritius Ports Authority estimates that revenues of around Rs 250 million have been generated by the transhipment business from January to June 2009. Mauritius Ports Authority plans to extend container terminalThe Mauritius Ports Authority (MPA) intends to extend the berth of the Mauritius Container Terminal by 150 m in the first phase, strengthen the existing quay so that the available depth moves from 14 to 16.5 m and finally, increase the surface area of the container yard.The MPA is inviting experienced engineering consultancy firms to provide services for the study, design, and preparation of bid documents as well as for the management and supervision of the project. The selected consultancy firm needs to be associated or in joint venture with a local firm. The preliminary planning and designs will have to be submitted including sub soil investigations, review of wave and model studies. The overall project is expected to last about 30 months. A loss of 40 million Euros expected by Air Mauritius in 2009/ 2010The profitability of Air Mauritius will depend primarily on three factors: its operational performance, the price of fuel and the exchange rate of the Euro compared to the US dollar as a significant proportion of revenue is generated in Euro while most of the national carrier expenses are incurred in US dollars.For the current financial year which started on the 1st April 2009, a careful matching of cost with revenue, a favourable rate of exchange between the Euro and the Dollar and the price of fuel trading around US$ 72.5 per barrel as compared to a low US$ 37 in December of last year, are having a positive impact on operational results and on the overall debt. According to Air Mauritius, the current price of fuel and the Euro Dollar exchange rate will lead to a projected hedging loss for the financial year ending on the 31st March 2010, of 40 million Euros. Furthermore, the sale of non-core assets such as the Paille en Queue Building, has been postponed since the economic crisis has impacted negatively on assets values. A second runway at Plaisance airportCompany Airports of Mauritius has issued an invitation to tender for the construction of a second runway at SSR International Airport, Plaisance.Moreover, the Environment Impact Assessment report has already been submitted to the Ministry of Environment. The new runway will greatly contribute to increase the frequency of flights. In addition, five aprons are planned as parking slots to cope with the increasing number of airlines that are expected to service Mauritius. The different zones will be in line with the international norms of civil aviation. Four of these areas will be able to accommodate big, long haul aircrafts such as Airbus A 340, Boeing B 747 and B777 while the last apron will be designed to suit an Airbus A 380 plane. The construction works are expected to begin in September. In the last country budget, Rs 1 billion has been earmarked for the extension project of the airport. A double-hull tanker vessel to be acquiredThe Government has made an agreement in principle with company Betonix Ltd in partnership with Executive Ship Management Private Limited of Singapore. The joint venture will operate and register in Mauritius a double-hull tanker vessel, subject to a commercial contract is entered between the State Trading Corporation and the promoters for the transportation of petroleum products to Mauritius for a period of 15 years as from August 2010.The 15-year duration has been motivated by the fact that the investment is very heavy, about 15 million US dollars. Through this move, the Government expects to achieve 12.6 million US dollars savings and a greater control over pricing, delivery, timing and volume of imports. Furthermore, for the STC to enter a contract with the promoters, the freight rates to be charged in connection with the transportation of the petroleum products, will have to be jointly agreed upon by the STC and the promoters, based on rebates available with regard to indicative market rate. Betonix and Executive Ship Management will finance the purchase of the tanker vessel from their funds. MFD turnover on the riseThe turnover of Mauritius Freeport Development (MFD) has increased by 23% this financial year to reach Rs 90.9 million compared to Rs 73.5 million last year.Moreover, the operational profits are also on the rise, having attained Rs 24.8 million this financial year against Rs 11.4 million in 2008. This 116.8% growth has been achieved through the restructuration of the company initiated last year as well as the aggressive marketing to attract foreign operators to use the transformation zone of MFD and local distribution companies to store their products in its warehouses for bulk-breaking to retailers throughout the island. However, on the exchange front, losses of Rs 18.9 million have been recorded this year due to the unfavourable exchange rate of the Mauritian Rupee towards the United States Dollar. Major future development at MCTAn invitation to tender will be launched in the near future for the extension of the Mauritius Container Terminal of Port Louis harbour.The terminal and the space behind the container park will be expanded over more than 150 metres. The total cost of the project is estimated at Rs 3.5 billion. The construction works are expected to be initiated in 2011 and would be completed in 2013. Construction of a flood wall at Port LouisThe construction works of a flood wall to protect the Container Terminal, will start as from the beginning of June and are expected to be completed in 5 months time.Rs 83 million will be invested in this project. The contract has been awarded to firm Rehm Grinaker. The flood wall 2 metres high will protect the container parc against the rise in the level of sea water. Furthermore, three tug-boats will be acquired by the Mauritius Ports Authority. The first that has already been ordered for around Rs 300 million from Dutch company Damen, is near completion in Vietnam. The towing vessel will leave Vietnam in a week time to head towards Port Louis. The two other tug-boats of a smaller capacity, will be manufactured in India at firm Spartek of Chennai and will be operational as from August. Up to 7 cargo flights per week between Switzerland and MauritiusA Memorandum of Understanding has been signed on bilateral air services between the aeronautical authorities of Switzerland and those of Mauritius.Under this MoU, each country can designate airlines to operate up to a total of seven cargo flights per week and to operate passenger services up to the same frequency with any type of aircraft. Furthermore, provision has also been made to allow the designated air carriers of Switzerland or Air Mauritius to enter into cooperative marketing actions such as code-sharing, and even with an airline of a third country. Currently, Air Mauritius schedules a weekly flight to and from Switzerland and it may in the near future take advantage of its strategic alliance with Air France to offer more flexible freight services to Swiss market and use the Charles de Gaulle Airport in Paris as a hub. MCCI invites Government to review idea of zero-rated import dutiesThe Mauritius Chamber of Commerce and Industry (MCCI) has submitted a memorandum to the Government, in conjunction with the preparation of the 2009/ 2010 budget.According to the MCCI, the Government should review the idea of bringing down all import duties to zero and seriously consider to maintain duties on a limited number of products which are of strategic importance to the economy of our island. Members of the MCCI have noted with concern that the reduction of import duties has led to a decrease in the competitiveness of local enterprises which export. Furthermore, they raise the point that the expected results, new products to be manufactured in Mauritius and exported, have not yet materialised. The MCCI adds that the concept of duty-free island be revisited and not used as a blanket measure to cover all activities, but looked at in its true perspective, aiming at developing Mauritius as a shopping centre for tourists. Furthermore, in its memorandum, the MCCI points out that Enterprise Mauritius was working on a project of regional warehouses to promote export. However, the concept as proposed by Enterprise Mauritius, did not appeal to private organisations because it required financial contribution from them and which was beyond their means. The MCCI suggests that the project be revived with total funding from Government since that the Government will afterwards be able to derive revenue in terms of commission and tax on profits when the exporters using these warehouses, start to sell through them. Trade unions say no to port privatisationThree trade unions of employees of the port, the Port Louis Harbour and Docks Workers’ Union (PLHDWU), the Stevedoring and Marine Staff Employees’ Union (SAMSEA) and the Docks and Wharves Staff Employees Association (DAWSEA) are opposed to the project of privatisation of the port.José François, president of the PLHDWU, expressed the wish for a national debate to be held before any a final decision is taken about the port privatisation. He also pointed out that the Cargo Handling Corporation Limited (CHCL) was set up through the joint efforts of the government and of trade unions. On his part, the president of SAMSEA, Gerard Bertrand made several proposals including the invitation to the government-investment arm, the State Investment Corporation to inject additional funds in the capital of the Cargo Handling Corporation Limited (CHCL) and to acquire the shares belonging to the Mauritius Ports Authority in the CHCL. He added that if a private operator is called to manage the port, the social aspects of workers may be neglected and in case a foreign company takes over, profits may be repatriated, which will not benefit Mauritius. COMESA-EAC-SADC Training Workshop on Non-Tariff BarriersA one-day workshop has been held this week at Ebène Cybercity by the COMESA-EAC-SADC on Non-Tariff Barriers.The acting President of the Mauritius Chamber of Commerce and Industry (MCCI), Mr. M. Venkatasamy said that non-tariff barriers such as import licensing and technical regulations could act as a serious hindrance to trade. He added that the non-tariff barriers have always been an issue of concern for the private sector as they have considerable potential of decreasing or even nullifying the benefits of market access following tariff liberalisation. The workshop gave the participants of the online Non-Tariff Barriers reporting, monitoring and elimination mechanism. The online system has been devised in collaboration with the Eastern African Community (EAC) and the Regional Hub for Trade Facilitation. The Minister of Foreign Affairs, Regional Integration and International Trade, Dr. Arvin Boolell pointed out that due to the current financial crisis and global economic downturn, opportunities that exist within the region cannot be missed out due to unnecessary restrictions to trade. He stressed the importance for the Government and the private sector to adopt a synergistic approach to identify and prevent the emergence of Non-Tariff Barriers. In Mauritius, freight forwarders can obtain relevant information on matters pertaining to Non-Tariff Barriers in COMESA and SADC countries at the Ministry of Foreign Affairs, Regional Integration and International Trade as well as at the MCCI. Electronic Certificate of Origin to be introducedThe Mauritius Chamber of Commerce and Industry (MCCI) plans to introduce the electronic Certificate of Origin at the end of July. According to an official of the MCCI, prior meetings will be held before the launching with the major stakeholders including the Professional Freight Forwarders Association (APT, so as to create awareness.The new electronic system will be managed by Mauritius Network Services. Freight forwarders will be invited to rent a software that will be installed at their premises so that the request for an electronic Certificate of Origin can be filled and sent electronically to the MCCI together with the supporting scanned documents of bills and invoices. The MCCI intends to clear the submitted documents within 3 hours before issuing, whenever appropriate, a printed version of the Certificate of Origin and remitting it to the Freight forwarder against payment of a fee to be determined. Currently, members of the MCCI pay a sum of Rs 25 plus VAT for each Certificate of Origin produced. Workshop on Exporting to the U.S. under the AGOAThe Ministry of Industry, Science and Research organised during the week a workshop on Exporting to the United States under the Third Country Fabric Derogation of the African Growth and Opportunity Act (AGOA) so as to help manufacturing Mauritian companies seize opportunities that arise.Although the AGOA covers up to 6 400 product lines, exports from Mauritius to the US have been mostly textile products and apparels. Duty free access is also available to non-textile products under the Generalised System of Preferences (GSP) scheme, which has been extended up to the 30th September 2015. In addition, the list of products originating from sub-Saharan Africa including Mauritius, under that programme, has been expanded. The U.S Congress approved the eligibility of Mauritius for the Third Country Fabric provision until 2012. This provision can contribute to mitigate the effects of the global economic crisis on our textile factories by providing an opportunity to increase their exports to the United States market. Under the third country fabric derogation,firms involved in only single transformation of fabrics into apparel products, can enjoy duty free access. 27 sub-Saharan countries, including Mauritius, have obtained the AGOA Visa System which prevents illegal transshipment. It is worth noting that last year, around 40 main export oriented enterprises exported goods worth Rs 3.46 billion to the United States, compared to Rs 4.21 billion in 2007. Total value of exports by all companies that amounted to Rs 4.78 billion in 2007, decreased to Rs 3.98 billion in 2008. Fall in container traffic at Port LouisThe volume of containers handled at Port Louis has fallen during the first two months of this year. In January 2009, 21 000 containers have been exported or imported, a 23% drop compared to January of last year when 28 000 boxes were handled. In February 2009, the container throughput was only 18 000 while in February 2008, there were 21 000 boxes.Several factors contributed to that trend: the drop of export of textile products and of the importation of raw materials by the sea mode but also, the fall of tourist arrivals which had a negative impact on imports of fruits and vegetables by suppliers of hotels. It is worth noting that a five-star hotel can order 20 tons of fruits and vegetables per day. A new Executive Committee for APTMembers of the Professional Association of Freight Forwarders (APT) have elected a new Executive Committee for 2009-2010.Julien Audibert, Country Manager at Freight & Transit Limited, is the new President. The former President, Varen Andee, Director of Multicargo, will continue to put his experience at the service of the association, by acting as Public Relations Officer. François Lan of World Freight now occupies the vice-Presidency while Alain Lo Hun, Manager at Rogers Logistics, has been appointed as Secretary. Amil Emamdin, Director of Freightnet Cargo Services, who held last year office as Treasurer, has been reconducted for 2009-2010. He will be assisted by Robert Hungley, the new Manager of Indian Ocean Logistics. Furthermore, Noel Pointu of DHL, has once again been elected by the members of APT on the board of the association. Finally, among the APT Council members, there are two new comers this year: the Assistant Secretary, Patrick Mayepa of GLS and Percy Lamy of Cargoways Services, who has been elected as board member. MEXA in quest of export subsidiesThe Mauritius Exporters Association (MEXA) has asked for an export premium for textile companies during a meeting held between the Minister of Finance, Rama Sithanen and the association this week.MEXA has made a parallel with India and China, which have increased export subsidies to their textile industry, giving manufacturers of these countries a competitive edge.India offers interest subvention of 2% on pre-shipment and post-shipment credits. The performance-based proposal of MEXA aims at helping to keep the performing industries afloat and safeguard employment. Moreover, MEXA expects export revenues will drop by 10% by July of this year. The Cargo Community System training has startedThe training sessions relating to the use of the Cargo Community System (CCS) have started this week. CCS is an internet-based platform that will contribute to improve the safety and efficiency of the logistic chains by enabling all the operators (customs, freight forwarders, shipping lines and air carriers) to have access in real time to information on the movement of cargo both during import and export.Furthermore, the CCS will give Mauritius a competitive edge as a regional hub, being the first country in Africa to invest in such a technology that is in line with the forthcoming international customs exigencies in the United States and Europe. The Customs regulations of Mauritius have been amended since 2008 so that all imports, exports and transshipments are carried out through the CCS. The new platform will be implemented in phases according to a time frame that will be communicated by the MRA. The first stage will focus on maritime transshipment before rolling out with imports as well as exports by sea and culminating with airlines operations. Moreover, CCS will streamline administrative procedures and reduce costs related to logistics by minimizing dwelt time during import or export. About a hundred employees of shipping agents are following the ten CCS training sessions of 3 hours duration. The personnel of freight forwarders, of customs services and of customs house brokers will then be exposed to the new concepts. A strategic partner for terminal operations at Port LouisThe Ministry of Tourism, Leisure & External Communications has initiated an official ‘Request for Pre-Qualification’ (RPQ) process so as to identify a potential strategic partner to the Cargo Handling Corporation. The applicants will be evaluated on their technical and managerial experience as well as financial capacity.The strategic partner is expected to contribute to the development of Port Louis harbour as a major hub for transshipment in the Indian Ocean region. It will enhance productivity at the terminals through the optimum utilisation of existing port infrastructure, substantially increase container handling capacity, help to the quick turnaround of container vessels, reduce waiting time of ships, offer international class terminal services, provide technical expertise to the Cargo Handling Corporation and enable cost effective port services. The Government of Mauritius will divest its 40% equity interest in the Cargo Handling Corporation to the strategic partner, which shall be required to invest to improve operations, performance and service levels at the port terminals. The International Finance Corporation, a member of the World Bank Group, will act as the lead transaction advisor of the Government of Mauritius. The closing date for the RPQ has been scheduled on the 6 April. Only pre-qualified applicants will be eligible to participate in the subsequent and final stage of the selection process by responding to the ‘Request for Proposals’. Comair reduces flight frequency to MauritiusComair Limited, the company that operates British Airways regional service, will suspend as from the 1st May its Wednesday and Sunday flights between Mauritius and Tambo International Airport in Johannesburg, South Africa. As a result, airfreight capacity to and from South Africa will be reduced.The company’s Executive Manager of Sales & Route Development, Stuart Cochrane, said that they “have assessed the current performance of these flights and believe that better opportunities currently exist to deploy the aircraft on other routes.” Comair will continue to operate only one flight per week, on Saturdays. The company operates a fleet of six Boeing 737-200s, nine Boeing 737-300 aircraft and ten more technologically advanced Boeing 737-400s, which enable fuel saving of over 15%. A Boeing 737-200 can carry 15 545 kg of cargo in its hold. Air Mauritius cargo tonnage dropped by 17.5%Air Mauritius has released its interim financial statements for the first nine months (April to December 2008) of its current financial year which will end on the 31st March 2009.The results of the national carrier had been affected by high fuel prices up to August of last year and subsequently by the fuel hedging activities. In addition, the global financial crisis has resulted in a fall of cargo and passenger traffic. Between October and December 2008, Air Mauritius suffered a loss of 7.2 million euros (Rs 299 million), its cargo tonnage dropped by 17.5% compared to the same period the previous year. In the light of falling demand and to reduce its operational costs, the company will be reviewing its network and fleet utilisation. It will also maximise opportunities by turning to various ‘code sharing’ agreements with other airlines. Developments at Port LouisA number of projects will be initiated in the port in the near future. The construction works for a terminal for cruise ships will start as from the month of March and are expected to be completed by September of this year. Rs 443 million have been budgeted for this projectThe Mauritius Container Terminal will be fitted with a floodwall so as to protect vessels calling at Port Louis and enable them to berth despite relatively adverse wave conditions. Furthermore, to minimize the dwelt time of ships and to cope with increasing number of container vessels calling at Port Louis harbour, especially following the forthcoming closure of the Sugar Bulk Terminal and the export of sugar in containers, which will increase the number of boxes by 20 000 containers, additional new tug boats will be operational as from April. The biggest tugboat will bear the name of Da Patten. Mr. Stephen John Mendes, the new Director of CustomsThe new Director of Customs has taken his duty this week. Mr. Stephen John Mendes, a British of 45 years old, has acquired a vast experience in the customs environment, having contributed to various projects in a number of countries namely the United Kingdom, Latvia, Mozambique, St Vincent & the Grenadines, Syria, Guyana and Ukraine where he took an active part in the modernization and reform of the customs services.He also previously reviewed customs functions and procedures at St Vincent & the Grenadines in his capacity of Customs Modernization Adviser for the Commonwealth Secretariat, an organization based in the United Kingdom. His last assignment was in 2006, working as Standard & Training Coordinator for the European Union Border Assistance Mission to Moldova and Ukraine. Mr. Stephen Mendes holds a Certificate in Business Studies as well as an MSC in Development Management. CHC reduces its operational costsThe Cargo Handling Corporation (CHC) has taken corrective action to reduce its operational costs after the recent salary review. Overtime will be minimised and seasonal workers more judiciously used. In their survey, the consultants of the firm Core Services pointed out that overtime and allowances amounted to 162% of the total salary base which they viewed as not a sustainable and healthy state of affairs in the long run.The CHC had recourse to employees willing to do overtime, to replace workers who did not turn up during their shifts. Nowadays, only the available workforce will be deployed to cope with the exigencies of the service so as not to incur additional costs. The CHC pay scales have been aligned with those of the Mauritius Ports Authority. The salary reviews recommended by the consultants Core Services, have increased the annual budget for salaries by 26% from Rs 578 million to Rs 728 million. During 2007/ 2008, the Cargo Handling Corporation ended the financial year with profits before tax of Rs 2.2 million compared to Rs 4 million during 2006/ 2007. Import of vintage and classic motorcars will be authorisedThe government will amend in the near future the Consumer Protection (Control of Imports) Regulations so as to allow the importation of vintage and classic motorcars.However, the freight forwarders and their customers will have to produce documentary evidence that the old vehicles they want to import, have been manufactured before the 31st December 1948. Furthermore, there would be no restriction about the number of such imported vehicles. The vintage and classic motorcars will have to be registered at the National Transport Authority once cleared by the Customs Department. Regional Integration CouncilThe government has revamped the Regional Cooperation Council, a high-level public-private sector forum which was set up in 1996. The Council will be renamed as the Regional Integration Council with the objective of boosting regional trade following the recent tripartite SADC-COMESA-EAC Summit.The new Council will comprise Ministers, members of the National Assembly, representatives of the public and private sector. It will adopt a participatory approach from all segments of the Mauritian society on bilateral issues so as to achieve a deeper regional integration. The Council would meet on a quarterly basis. The SADC has united forces with other economic blocs, the COMESA and the East African Community (EAC) to form the African Free Trade Zone. The member states of the three trading blocs have agreed to create a single free trade zone, the African Free Trade Zone, consisting of 26 countries with a GDP estimated at $ 624 billion. It spans across the whole African continent from Cape to Cairo. The African Free Trade Zone has contributed to eliminate duplicative membership and the problem of countries participating in other regional economic cooperation schemes undermining each other. Fall in the value of Freeport importsLatest data indicate that during the first nine months of 2008, total imports through the Freeport Zone reached Rs 3,806 million (CIF value), 14.9% lower than the corresponding period of the previous year.Fish and fish preparations, textile yarn, fabrics and made up articles followed by telecommunications equipment, parts and accessories, were the main products imported through the Freeport. 64, 992 tonnes had been re-exported to overseas markets during the first nine months were valued at Rs 6,720 million (FOB value), with Madagascar topping the list of destinations (Rs 1.463 million) tracked by the re-exports of mobile phones to the United Arab Emirates (Rs 1,414 million). Furthermore, it is estimated that for the third quarter of 2008, 42% of Freeport exports were sourced locally. New terminal at SSR International AirportA new terminal will be constructed at SSR International Airport with new aircraft parking stands.The design stage of the project will be completed by next month. Airports of Mauritius Limited has already submitted an application to the Export and Import (EXIM) Bank of China to obtain a loan of 195 million euros for the financing of the project. The construction works will be initiated by July of this year and are expected to be completed within two years. Acquisition of a tanker vesselThe Government of Mauritius will purchase a tanker vessel for the transportation of petroleum products. This strategic move will contribute to stabilize freight rates and reduce the country’s dependency on foreign operators.According to official sources, actions have also been taken to heighten security in the port area. A detachment of 10 members of the Special Mobile Force will be permanently posted at the Capitainerie Building to respond to any emergency. The National Coast Guard carries out regular search on vessels on the basis of reasonable suspicion. In addition, no filming or photo shooting of the port and airport will now be allowed. Strategic partner for the Cargo Handling CorporationThe International Financial Corporation has submitted to the government its recommendations about the implementation of a strategic partnership project for the Cargo Handling Corporation Ltd.The firm has already drafted its ‘inception report’. The strategic partnership will contribute to transform Port Louis into a major transshipment hub attracting increasing container traffic, optimizing port infrastructure and with a view of improving productivity of the Cargo Handling Corporation Ltd. New BAF surcharge for DelmasShipping company Delmas (CGM-CMA) has revised the BAF (Bunker Adjustment Factor) surcharge.The new tariffs will be implemented as from the 1st January 2009, ‘Bill of lading’ date. On the route between East Mediterranean countries, the Black Sea, the Northern part of Africa and the Indian Ocean islands, the BAF on a container will amount to US $ 330 per TEU. However, for southbound containers from Atlantic Europe to the Mediterranean and the Indian Ocean islands, the BAF surcharge will be 254 Euros per TEU. The same surcharge will apply on containers moving in the reverse direction. New Customs House operational in March 2009The new Customs House at Mer Rouge is expected to be operational in March of next year. The new building wrapped in light blue colour, covers a surface area of 11 000 square metres and will be structured around an open space. The building will make an optimum use of natural light from sunrays, enabling electricity savings.Furniture and data cables will be installed in the coming weeks. The transmission of data will be boosted through the fiber optic network. The ground floor of the new Customs House has a wide-open space with a zone for enquiries from the public while the offices are located in the three upper levels. The filing sections found in the basement and at the different floors, will be fireproof. Furthermore, dedicated counters will be set up to cater for the different needs of importers. A one-stop window for Customs stakeholders is also planned. A total of Rs 400 million will have been invested in the construction and fittings of the new Customs House. Mauritius hosted SADC Sub-Committee on Customs CooperationMauritius has hosted the SADC 17th Sub-Committee on Customs Cooperation (SCCC) from 22 to 28 November at Le Victoria Hotel, Pointe aux Piments.The event jointly organised by the Mauritius Revenue Authority and the SADC Secretariat, aims at facilitating regional integration of SADCV member countries. Participants have shared best practices and experiences in matters of Customs Modernisation, Trade facilitation and Customs Co-operation. A Customs Union will be established among SADC states by 2010, a Common Market by 2015 and a Monetary Union by 2016. Some 50 delegates from member countries (Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe), have attended the meeting. Several projects are in the pipeline at the MRA to improve trade facilitation and aiming at positioning Mauritius as a regional hub. With the Cargo Community System (CCS), import, export and transshipment procedures will be streamlined. The implementation of this project will make Mauritius the first country in Africa to exchange advanced manifest and export declaration data with the EU and US Customs. Furthermore, the new Customs House at Mer Rouge, will be operational around March 2009, providing a single window for other government agencies requirements. Major projects at Port Louis harbourThe strategic plan of the Mauritius Ports Authority for the next 20 to 25 years will be completed by the end of this year. Several recommendations will be formulated regarding the extension of the container terminal so as to increase its capacity to 1 million TEUs and the dredging works to increase the depth of the navigation channel to accommodate vessels of more than 8 000 TEUs.According to the Mauritius Ports Authority, during financial year 2007/ 2008, 576 container vessels called at Port Louis, a 0.7% rise compared to the previous financial year. However, the number of fishing vessels dropped by 22.8% to fall to 631. The captive container market has increased by 21.5% to reach 215 072 TEUs while the volume of transshipped containers has moved up by 4.9% to attain 108 321 TEUs. 323 393 TEUs handled at Port Louis in 2007/8The Mauritius Ports Authority has recorded during financial year 2007/ 2008, a 9% growth in traffic compared to the previous financial year.6.4 million tons of goods have been handled. Imports for the local market have increased by 23.4% over one year while the number of containers transshipped has risen by 4.9%. Container traffic at Port Louis harbour has reached a record level of 323 393 TEUs. However, from one financial year to another, the turnover of the Mauritius Ports Authority has dropped slightly by 2.5% mainly due to the unfavourable rate of exchange of the Mauritian rupee against the US dollar. Rs 955 million have been generated in 2007/2008 with a net surplus of Rs 516 million. Tough time for Air MauritiusAir Mauritius has published its financial results for the first six months of its current financial year 2008/2009.From April to September 2008, the performance of the national carrier has been negatively impacted by high oil prices and the global financial crisis. The price of an oil barrel peaked at US dollars 147 in July, increasing the fuel bill for Air Mauritius by 32 million euros during the half year, a 49% increase compared to the first semester of the financial year 2007/ 2008. It was noted that as from mid-August, cargo traffic in most of markets has fallen due to the global financial crisis. During the first semester of the financial year 2008/09, the Air Mauritius Group recorded a loss of 13.4 million euros (Rs 560 million) while a profit of 2.5 million euros (Rs 106 million) was generated for the first six months of last year. In 2007/ 2008, 11.3% of Air Mauritius revenue came from cargo activities and 85.7 % from passenger traffic. 35,959 tons of cargo were carried across the network. Public-Private Sector Committee on trade agreementsA joint Public-Private Sector Committee on trade agreements has been held this week at the Labourdonnais Waterfront Hotel, Caudan, under the aegis of the Ministry of Foreign Affairs, Regional Integration and International Trade.This Committee has been set up to maximize the benefits arising out of the different trade agreements and to cope with the challenges brought by liberalization. Issues that will impact on the business of freight forwarders. The Ministry of Foreign Affairs, Regional Integration and International Trade is currently involved in a number of trade negotiations such as the ‘Economic Partnership Agreement’ with the European Union as well as with SADC and COMESA countries at regional levels. The government aims at safeguarding and enhancing our market access, diversifying our current exports as well as deepening trade links with emerging economies (India, Pakistan, Brazil, China, Turkey). Strategies on how to maximize benefits and cope with the unfolding challenges, have been discussed during the meeting. Delmas new Mascareignes Express serviceFrench shipping line Delmas will launch as from the 15th November, a new service dedicated to the Indian Ocean ports, the Mascareignes Express. Four vessels each of a capacity of 1 700 TEUs (Twenty feet equivalent units) will be unrolled on the new service each week.The Delmas vessels of Mascareignes Express services will load the containers at Djibouti and call at the ports of Port Victoria (Seychelles), Pointe des Galets (Reunion island), Port Louis, Tamatave and Logini (Mayotte) before sailing back to Djibouti. From the North Continent, containers will be loaded on board the vessels that service the CMA CGM EPIC line. These container-carrying ships call at the ports of Southampton, Hamburg, Antwerp, Le Havre and Djibouti. Furthermore, from the Mediterranean countries, the containers will be loaded on board the vessels of the CMA CGM MEX line, that cast their anchor at Valencia, Barcelona, Fos sur Mer, Genoa, Malta, Damiette and Djibouti. Both services offer weekly departures. EPIC, MEX and Mascareignes Express services will use Doraleh, the new container terminal of Djibouti as a hub where the CMA CGM group will rely on its own teams for a fast and reliable service. Enhancing security in the port areaAccording to governmental sources, the Mauritius Ports Authority plans to set up in the future a Security Unit so as to provide assistance to the police force in controlling the movement of people and vehicles inside the security limits of the Port premises.The Security Unit will undertake regular patrols to detect and deter unlawful acts with the help of the policemen. Furthermore, the United States government will donate to the Port authorities a fast patrol boat in April of next year and an offshore patrol vessel will be acquired under the Indian Line of Credit. These vessels will enable the National Coast Guard to perform more effective search and patrol in and outside the port area. 3rd Indian Ocean Ports, Logistics and Shipping Conference25 international speakers specialized in global transport and logistics will attend the ‘3rd Indian Ocean Ports, Logistics and Shipping Conference and Exhibition’ which will be held on the 30th and 31st October 2008 at Hilton Hotel, Flic en Flac. The event hosted by the Mauritius Ports Authority, is organized by the foreign company Transport Events.Furthermore, more than 350 delegates of Mauritius and other Indian Ocean countries are expected, coming from different organizations (freight forwarders, shipping companies, port operators, suppliers of port equipment, importers and exporters…). Furthermore, an exhibition will showcase the products and services of 35 companies. The Conference will unveil thought-provoking issues such as ‘Evaluating the demand and growth of regional logistics players’, ‘Maintaining profitable operations whilst meeting customer service standards’, ‘Logistics Performance Index: optimising and measuring performance’, ‘Achieving greater cargo visibility, security and tracking in ports’… Mauritian delegates will be charged Rs 31 995 for the whole conference. Air Mauritius to extend its e-freightAir Mauritius has started e-freight process with a Mauritian freight forwarder on a pilot basis and on the corridor between our island and London. The national carrier plans to implement it afterwards with a sample of freight forwarders as from January of next year.By year 2010, all local freight forwarders will be expected to be e-freight compliant by Air Mauritius and the whole network of 28 destinations will be covered. Airway bill data will have to be sent electronically through the internet. The paperless environment will contribute to save time and money. Furthermore, according to an official of Air Mauritius, tests have already been undertaken with the support of IATA, the International Air Transport Association, to undertake the ‘message improvement programme’ so as to ensure the quality and integrity of data transmitted. In the meantime, the State Law Office is working on the legal and regulatory framework of the system of e-freight. New oil jetty operationalThe new oil jetty of Port Louis is operational since Thursday 25th September. A tanker under Panamanian flag, the ‘Prinkipo’ took its shipment of 4.5 million litres of ethanol produced by local distillery Alcodis, before heading towards Spain.The dedicated oil jetty which has required investments totaling Rs 560 million, is equipped with pipelines that link tankers to the heavy oil, liquid petroleum gas and fuel cistern located on shore at Mer Rouge. The oil jetty 55 metres long, can accommodate vessels up to a length of 250 metres and with a capacity ranging from 5 000 to 55 000 DWT. Previously, tankers of petroleum products had four different berths. The new oil jetty has been constructed by company Afcons. It will contribute to enhance safety in the port. Freight Rebate SchemeIn line with the Government policy to export agro-industry and non sugar cane agricultural products, the Freight Rebate Scheme is being revisited in consultation with concerned stakeholders.The Scheme is aimed at exporters of fruits and vegetables, enabling them to obtain the partial refund of freight costs incurred. It has contributed to boost up the export of a few selected horticultural products to several markets including long haul destinations such as Dubai, Singapore and Japan. The funds are disbursed under Programme 481 (Policy and Strategy for Agro Industry and Fisheries) Item ‘Food Security Fund’. An amount of Rs 50 million has been earmarked for the current financial year. The exporters need to provide documentary evidence, such as bill of entry and EUR1 certificate. Fifteen exporters are registered. Pineapples constitute the main export followed by litchis, mangoes, breadfruit, chillies and green. 4 RTGs delivered to CHC in June 2009To cope with the increasing volume of containers handled at terminals, the Cargo Handling Corporation Ltd has initiated action for the acquisition offour additional Rubber Tyred Gantry cranes (RTGs). The tender has already been awarded by the Central Procurement Board to Shanghai Zhenhua Port Machinery Co. Ltd., a company which submitted the lowest bid of US dollars 5,750,000, VAT inclusive. Furthermore, the funding agency, the European Investment Bank gave its clearance. The manufacturing works are currently being carried out at the site of the contractor, and delivery of the four RTGs is expected in June 2009. The procurement of the new machines is line with the strategy of the Cargo Handling Corporation to modernize yard operations. MFD attracts new operatorsSeveral new companies will start their operations in the premises of the Mauritius Freeport Development in the coming months.Alpha group, a multinational company based in Uganda and active in the trade of fish products and milk the Eastern part of Africa, is planning to launch a seafood treatment plant at the beginning of next year. Moreover, a Mauritian company having entered into a joint venture with investors from Madagascar will begin to prepare pre-cooked bread, which will then be frozen and exported to regional markets including Madagascar. Another company having points of sale in Madagascar and Reunion island, will prepare its orders of beauty care products especially perfumes and carry out value-added services such as packaging in the MFD processing zone. The Freeport facilities of Mauritius have also attracted a foreign company for the set up solar panels. A small percentage will be sold to the local market. A tanker vessel for MauritiusThe government has initiated procurement procedures for a tanker vessel for the transportation of petroleum products for Mauritius. The Shipping Corporation of India has already expressed interest in the implementation of the project.Furthermore, a Memorandum of Understanding has been signed with the Aeronautical Authorities of the Sri Lanka to enable passenger and cargo flights between the 2 countries for designated air carriers on a frequency of three flights per week. The agreement makes provision for the use of any aircraft type not exceeding the capacity of a B747- 400 aircraft. Freeport trade drop“The Mauritian Freeport has seen stagnation in terms of trade volume generated”, said Mrs. Danielle Wong, director of the Mauritius Export Association (MEXA) in its publication, The Exporter.She added that the decision to impose a 15% corporate tax on Freeport operators as from July1, 2009, will definitely widen the gap in terms of competing with Dubai to attract investors. Currently, Madagascar tops the list of Mauritius Freeport markets with 25.2% market share while the other Indian Ocean islands including Comoros and Mayotte, make up 12.5% of the total market. During the first quarter of 2008, total imports of the Freeport Zone had been 21.7% lower compared to the first quarter of 2007. The main items imported through the Freeport were fish and fish preparations, textile yarn, fabrics and telecommunications equipment and parts. Re-exports to overseas markets stood at Rs 1.925 million, a 24.9% decrease with regards to the corresponding quarter of last year. 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. |