Local news:Two new members on the board of Air MauritiusAt Air Mauritius annual general meeting held this week, Kamal Taposeea has been reappointed as Chairman of the national carrier.Furthermore, two new directors now hold a seat on the board of Air Mauritius: Francois Woo, director of one of the leading textile factories, CMT and Dominique Patry, the new representative of Air France, one of the shareholders of Air Mauritius with an effective 8.5% of the total shares. Kamal Taposseea pointed out that the prospects are good for the company to achieve profits during the current financial year 2010/ 2011 and pay a dividend to its shareholders. “If you think you have got your forecast right in respect of petrol price, an unplanned global event occurs that sends all predictions on the side and if you think you have got it right about the euro, Greece suddenly creates a storm in your exchange rates and if you think you have been able to weather these storms, a volcano erupts somewhere in Europe. I think that all this shows that you have to be constantly ahead of the game and must be quick to react”, he said. On his part, the Chief Executive Officer Manoj Ujoodha stated that Air Mauritius will have to face market volatility due to the exchange rate, fuel prices and the Eurozone turmoil. Strategic partner for Cargo Handling CorporationThe International Finance Corporation (IFC), the private sector arm of the World Bank, is acting as the Lead Transaction Advisors to assist the government in the selection of a strategic partner for the Cargo Handling Corporation.IFC is currently in the process of finalizing the documents for the launching of the second phase of the project, the Request for Proposal and a recommendation regarding the labour issue will be made to the Government subsequently. A Steering Committee under the responsibility of the External Communications Division of the Prime Minister’s Office, has been set up to oversee the successful implementation of the strategic partnership project. The Government will keep the majority shareholding in the Cargo Handling Corporation. The strategic partner for Cargo Handling Corporation Ltd will be selected with a view of capturing substantial benefits both in terms of container traffic growth as well as foreign direct investment as a result of the window of opportunities unfolding in the region. New regulations for the importation of toysSince Thursday 8th July, importers of toys no longer have to submit the original certificates of conformity of toys to obtain their customs clearance but a few conditions have to be satisfied.The copies of the certificates certified by an accredited body in the country of origin have to be submitted to the Mauritius Standards Bureau. Furthermore, the importer has to provide all details and give the contact persons so that the Mauritius Standards Bureau (MSB) can verify any information. It is only after the MSB has carried out this verification exercise that the toy can be sold in Mauritius. The importers will also have to satisfy European and Mauritian standards. In case that the sample does not meet the norms, the shipment will not be allowed to enter our island. Mauritius Freezone Logistics Ltd in receivershipThe Commercial division of the Supreme Court has approved the decision of the Board of Investment not to renew the Freeport Certificate of Mauritius Freezone Logistics Ltd (MFL) as this company is in receivership.The Mauritius Freezone Logistics Ltd, the fifth Freeport Developer to operate in Mauritius, is located at Arsenal, near the Northern motorway. The site was classified as Zone 14 by the Mauritius Freeport Authority. Its warehouses were used by customers operating in industries such as aluminium, plastic, garment, automotive manufacturing, motorcycle, tiles, consumer electronics, food etc… The Mauritius Freezone Logistics Ltd premises have a surface area of 37 892.93 square metres. The first phase of its development consisted of two blocks: A and B. The warehouses at Block B covered 2 200 square metres for B4, 2 160 square metres for B5, 2 375 square metres for the first level B6 and an equivalent area on the ground floor. The height of the warehouses varies from 3 to 9 metres. Rs 16 billion to be invested in a new waterfront at Port LouisForeign Direct Investment estimated at Rs16 billion will change the waterfront of Port Louis harbour at Les Salines over the next five years.The development will take place on 25 hectares of reclaimed land in the port area belonging to the Mauritius Ports Authority and leased to the Ministry of Housing and Lands for eventual sublease for a period of 99 years to Les Salines Development, the promoter of the project. It is a company wholly owned by Patel Engineering Limited of Mumbai, India, which is involved in infrastructure development and construction since 1969 and ranked among the top 5 in the construction sector in India. The ‘Neotown’ project will comprise mainly of hotels, commercial outlets, residential complexes, office buildings, a luxury condominium complex, marine gardens, leisure parks and tourist attractions. Works, including site development, have already started. The project is in line with the guidelines of Les Salines Master Plan prepared by Messrs Stauch Vorster Architects, commissioned in December 2002 by the Mauritius Ports Authority, and which submitted its report in 2004. Air Mauritius latest financial resultsAir Mauritius has released this week the results for its last financial year which ended on March 31, 2010.The national carrier recorded a loss of 6.9 million Euros. Without the fuel hedge losses (38.5 million Euros), Air Mauritius operational results (31.6 million Euros) would have been positive. During the financial year 2009/ 2010, Air Mauritius implemented a series of measures to stimulate revenue, reducing capacity to demand, improve efficiencies and reduce costs. The Chief Executive Officer of Air Mauritius, Manoj Ujoodha said that in the global aviation industry, cargo dropped by 9.8%. For the coming financial year, he told the press that although IATA forecasts an improvement in cargo revenue, Air Mauritius remains vulnerable both to the crisis in the Eurozone and the mismatch due to the costs of the carrier being mostly denominated in US dollars and revenues mainly in Euro. To mitigate the impact of those factors, the airline company is strengthening its presence in the regional, African and Asian markets by increasing its capacity while containing costs. Rise in air freight capacity on Air MauritiusAir freight capacity will increase on Air Mauritius as from next month. The national carrier will resume its weekly flights to Sydney, starting the 5th July. An Airbus A 340 aircraft will service that route, departing on Monday from SSR International airport and with a stopover at Melbourne.Furthermore, during the months of July and August, Air Mauritius will increase the frequency of its flights to India and Singapore/ Malaysia. The number of flights to Bombay will rise from 3 to 4 per week as from the 1st July while to Singapore and Malaysia, from 2 to 3 flights per week starting the 14th July. Analysts estimate that on average this year, the national carrier will increase its capacity by over 15% compared to last year as the world economy recover and the sourcing of goods from the Far East grow. A new impetus to the FreeportRs 300 million have been invested in the setting-up of two new Freeport zones during the first quarter of 2010.Other projects estimated at around Rs 500 million are in the pipeline. 25 new comers are expected to start their operations in the Freeport in activities related to cement, petroleum and air cargo. They will take advantage of the strategic location of Mauritius between Asia and the Eastern as well as Southern parts of Africa. To enhance the smooth flow of goods in the Freeport, a post monitoring system for the tracking of containers will be implemented this month. Furthermore, to attract new Freeport operators, an investment promotion mission is planned by the Board of Investment in the Middle East in July. Troubled times for Mauritian companies in MadagascarMauritian freight forwarders specialized in logistics from Mauritius to Madagascar, may face uncertainties in the coming months. Since Madagascar no longer benefits AGOA advantages of duty-free and quota-free access to the United States, an increasing number of textile factories are closing down. The latest is Cosmos Knits, a textile factory belonging to a Hong Kong businessman holder of a Mauritian passport and which had a workforce of 1 752 employees.Furthermore, according to the news agency APA, several Mauritian companies with subsidiaries in Madagascar are considering relocating to other southern African countries due to the political instability and the recent coup bid. The United Basalt Products (UBP) has during the last nine months ending March 2010 reported a loss of some US $ 300 000. The Mauritius Stationery Manufacturers Limited (MSM) has incurred a loss of US $ 2 million during the last nine months, most of which from its operations in Madagascar. Moreover, Phoenix Beverages Limited (PBL) also has recorded a loss of US $ 1.2 million in Madagascar in nine months and is still waiting clearance from the Malagasy government to launch its activities. Mauritius Freeport Development to raise fundsThe freeport developer, Mauritius Freeport Development, may make a rights issue to raise a total of Rs 150 million. The transaction is expected to be completed before or at latest on the 1st of October 2010.The rights issue price and the number of new ordinary shares to be issued will be determined by the board of directors of the Mauritius Freeport Development. During the first quarter of 2010, the freeport developer has recorded a loss of Rs 8 million despite a 6.9% increase in its revenues which attained the level of Rs 97 million. The losses were attributed to operational charges, administrative and marketing expenses, which exceeded the growth in revenues. Container traffic on the rise at Port Louis71 000 TEUs have been handled at Port Louis harbour during the first three months of 2010, a 5% growth compared to the corresponding period last year. Three tug boats acquired by the Mauritius Ports Authority to facilitate the berthing of larger capacity 4th and 5th generations container-carrying vessels, are having a positive impact on tariffs.Moreover, it is expected that the number of vessels calling at Port Louis especially for transshipment of containers will increase due to the rising costs charged by other ports of the region including South Africa. Furthermore, the seafood hub witnessed a 37% rise during the first quarter from year 2009 to year 2010. During the first three months of 2010, 31 629 tons of fish products have been unloaded against 23 069 tons last year. MPA has ambitious project for Port MathurinThe Mauritius Ports Authority has the project of developing the existing infrastructure and carrying out dredging works to increase the quay depth at Port Mathurin. This will enable container-carrying vessels to call directly there to unload their cargo destined for Rodrigues island.Recently, the steel piles supporting the quay at Port Mathurin which had been exposed to corrosion over the years, have been reinforced. Moreover, works have been completed at Rodrigues for the safe mooring of the Mauritius Ports Authority’s craft during cyclonic weather. New Cargo and Freeport Zone at SSR International AirportThe President of the Professional Freight Forwarders Association (Association Professionnelle des Transitaires), François Lan attended a meeting on Thursday 29th April at the invitation of the Department of Civil Aviation to discuss issues pertaining to the finalization of the project of setting up a new Cargo and Freeport Zone at SSR International Airport.The advisers of Airports of Mauritius Ltd, Lufthansa Consulting were also present at this final consultation meeting. The new Cargo and Freeport Zone will cover a surface area of 67 hectares in the long term as the plots of land are progressively identified and acquired. The first phase of the Cargo Zone will initially extend over 17 hectares with warehouses and docking areas to load and unload air freight pallets. Backlog of cargo to UK will be clearedCargo due to be on board Air Mauritius planes taking off to London, had been grounded at SSR International Airport as a result of the cloud of volcano ashes that covered the Northern part of Europe.The backlog will be airlifted as from Saturday 24 April as Air Mauritius resumes traffic to the United Kingdom. However, due to the difficulties in obtaining the necessary slots clearances at London Heathrow airport, Air Mauritius will re-route four of its next flights to another airport of London, Stansted. The MK 046 flight initially scheduled for the 21 April will be replaced by the MK 3046 flight of 24 April which will depart from Mauritius at 2h30 and land at London Stansted airport on 24 April at 12h00. The freight that was due to be uplifted by the MK 042 flight on 22 April will now be loaded on the MK 4242 flight that will leave Mauritius on the 24 April at 14h30 before arriving at London Stansted at 23h59. The third flight is due to take off on 25 April at 08h00 to arrive at London Stansted at 17h30. The next flight on the programme will take off from Mauritius on 26 April at 08h05 to land at London Stansted airport at 17h35. Mauritius as an important bunker stationThe Mauritius Ports Authority expects that container traffic will double by year 2015, last year it was around 320 000 TEUs and that figure to reach over 1 million TEUs by year 2030, with shipping lines mobilising larger container vessels to service the trades routes between Asia and South Africa.In this perspective, the Mauritius Ports Authority is studying the project of making Port Louis becoming an important bunker station for ships in the Indian Ocean region. Exports from Mauritius on the upExports by the 413 enterprises belonging to the export oriented enterprises sector have increased by 13.5 % during the months of January and February 2010 compared to the corresponding period last year.Rs 5.26 billion worth of goods have been exported. Encouraging growths have been registered in the following product items: Textile and Clothing (+5.1%), Clothing including Pullovers, Cardigans, T-shirts and Trousers (+5.1%), Textile Yarns and Fabrics (+4.3%), Fish and Fish Preparations (+14.4%), Pearls and Precious Stones (+19.6%), Jewellery and Toys (+275.9%) and Games and Sporting Goods (+155.6%). Export figures to our principal markets indicate increases to United States of America (+35.8 %), France (+30.6 %) and the United Kingdom (+11.3%). World Bank mission in MauritiusA mission from the World Bank was recently in Mauritius for a pilot project about collecting data on Non-Tariff Measures (NTM) which can be disguised protectionism trade policies or special technical requirements that hinder trade and prevent achieving cheaper flow of goods. Five other Eastern and Southern African countries are taking part in this initiative.According to the Senior Economist of the World Bank and Task Team Leader of the project, Mr. Olivier Cadot, “while many of the NTMs, for example, product standards or labelling requirements, are imposed for legitimate purposes, such as protecting public health or the environment, if poorly designed can become an obstacle for firms”. To reduce NTM, the Government will set up a joint Public-Private Sector Standing Committee to monitor the implementation of measures aiming at improving the trade regulatory environment and promoting a systematic approach to assess trade-related regulations and administrative procedures based on the recommendations of the World Bank. Furthermore, the building of a harmonised dataset on NTM will enable Mauritius to facilitate its exports by improving information on NTM about the markets to which the goods are exported. Free trade area between Mauritius and Turkey in the pipelineNew opportunities may arise if the discussions pertaining to a Free Trade Agreement (FTA) between Mauritius and Turkey are finalised in the near future. Turkey is expected to grant duty free access on all industrial products once negotiations are concluded.Mauritius exports mainly denim fabrics, T-shirt and plain weave cotton to the Turkish market. Recent trade figures show that our country’s exports amounted to a share of only 0.01% of Turkey’s imports and totalled 10 million US dollars. On the other hand, Turkey exports to Mauritius iron and steel bars, leather articles, machinery items as well as rubber tyres for an annual value of 30 million US dollars. Products from that country represent about 0.02% of Mauritius imports. Turkey is bound by the Customs Union Agreement with the European Union and must align itself progressively to the preferential customs regimes that the European Union has African Caribbean and Pacific (ACP) countries including Mauritius. A waterfront planned at Les SalinesThe port area near Les Salines will be the site of a new waterfront if the project of private promoter Patel Engineering is implemented. A lease of 99 years duration has already been granted to that firm which intends to invest Rs 20 billion in the near future.The forthcoming Les Salines Waterfront will be five times larger than the current Caudan Waterfront and comprise retail outlets, conference centres, 3 hotels, leisure parks, a maritime museum, art galleries and a marina. The Ministry of Lands and Housing has offered the 36 acres on the condition that all developments integrate the cruise jetty and the various projects contained in the Port Master Plan. 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. |