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chirundu

Trade Winds weekly update volume 14

Chirundu 24/7, One of, if not, the most problematic borders on the important North-South Corridor into the copper belt area of Zambia and the DRC last night, told the Federation of East and Southern African Road Transport Associations (Fesarta) that it was open on a 24/7 basis. This comes after previous investigations earlier in the year showed that the border could and should operate at 24 hours seven days a week.

However, the investigations earlier in the year were not actually meant for the border to operate at this level but rather to identify challenges preventing the Zambezi crossing between Zimbabwe and Zambia from returning to previously established OSBP (One Stop Border Post) systems and services.

Mike Fitzmaurice, CEO of FESARTA said the following: “We looked at what it would take to make things work and spoke to officers and customs officials. We found that there’s enough will to make it work and received commitment from all parties concerned to solve Chirundu’s congestion issues.”

The 24/7 decision is effective immediately – and while 24/7 operations were still at a tentative stage, the remainder of the year would be used to fine-tune legal-technical aspects of the OSBP.

Fitzmaurice said it was reassuring that the recommendations made to Zimra and the ZRA following January’s fact-finding mission had been taken to heart, and that it was hoped Chirundu would in time be restored to the OSBP it used to be about 10 years ago.

Congestion strikes Beitbridge again, earlier in the week queues stretching around 8kms formed again south of Beitbridge as ZIMRA has ramped up their game on preventing groceries bought in South Africa being smuggled north across the border. The queue had reduced a bit as earlier in the week it was reported to be around 12Kms however frustrations are still mounting, according to reports ZIMRA officials are searching each and every truck.

There has also been reports of police taking this opportunity to exploit drivers of a reported R500 to jump the queue.

In addition to Zimra’s decision to tighten up on truck checking, staff working for the revenue authority also decided to embark on a go-slow for reasons unexplained.

Another growing concern is the safety of the drivers and in fact other road users, the drivers don’t get to sleep for around 2 days as the queue slowly crawls and once they have been released the drivers are extremely tired and exhausted from not having a good nights rest, thus putting potential dangers to themselves and other road users.

Federation of East and Southern African Road Transport Associations (Fesarta) has been in contact with ZIMRA officials in a bid to clear the congestion.

“There are better ways to deal with smuggling. Checking each and every truck causes massive delays and forces drivers to sit in their trucks for days waiting to get through the border. By the time they finally get through they’re unfit to drive.” Fitzmaurice said.

This is just adding further pressure to all parties involved, drivers are missing deadlines, hauliers are being charged demurrage and projects on the receiving end are being delayed.

JUST IN! following yesterday’s announcement of the 6pm-6am curfew, the slow chug of traffic through Zimra’s facility has been slowed even more, especially because the Documents Processing Centre (DPC) is only working 12 hours a day.

“In other words you have a 24-hour border with the DPC only running for half that,” said Mike Fitzmaurice, chief executive of the Federation of East and Southern African Road Transport Associations (Fesarta).

Earlier Fitzmaurice said Zimra was currently only managing about 30 trucks and hour, yet around 1000 trucks head to that border every day.

At the going rate it means only some 360 trucks are processed and cleared daily, while more and more trucks join the growing queue.

Zimra has just advised that the situation at the DPC centres was being addressed with government. But in view of the curfew introduced yesterday as an emergency restriction to curb the spread of the virus they had no choice but to comply.

They are appealing the ruling to allow DPC to continue working 24 hours but can give no time frame to the resolution of the situation.

Freight industry on its knees, As the industry continues to battle the full extent of Covid-19, the South African Association of Freight Forwarders (Saaff) has provided stats that reveal the extent of the damage.

Saaff estimates that local importers are facing around R1.4 billion in storage and demurrage costs accumulated during level-5 lockdown and more than 20 000 containers piling up in storage facilities whilst continued border congestions add to this burden.

“Road freight in this country is on its knees,” says Marcus Ellappan, director of road freight for Bidvest International Logistics (BIL). “There’s a regional imbalance of freight due to the decline in the economy, which means hauliers are battling to generate revenue, let alone operate profitably, especially on return loads. The protests by truck drivers against the hiring of foreign nationals are impacting utilisation of assets, which also impacts negatively on profitability. Some hauliers are now downsizing fleets as trucks stand idle, and with that jobs are being lost.”

COVID compliance is another nail in the coffin for the freight industry whilst the increase of PPE hijackings adds more pressure.

Light at the end of the tunnel, DRC announced that the state of emergency has been lifted, people in the Democratic Republic of Congo are slowly resuming normal activities in the wake of Covid-19 health emergency.

President Tshisekedi has ordered a three-stage reopening of business activities, schools, and borders.

In a televised address late on Tuesday, President Felix Tshisekedi announced an end to the Covid-19 health emergency enforced since 24 March.

This involved closing DRC’s borders with nine neighbouring countries, as well as shutting down schools, bars and restaurants.

Tshisekedi said that, from Wednesday 22 July, all shops, banks, restaurants, cafes, firms and bars would be allowed to reopen. Public transport can resume, and large gatherings will be permitted.

Back on Track, The Port of Cape Town is making headway in addressing its congestion challenges and is well on track clawing back lost ground.

Following staff shortages, lockdown congestions and backlogs, rough seas and stormy weather the port is back on track. 

Information shared earlier revealed that at the Cape Town Container Terminal (CTCT) five vessels were in roadstead and that there were six vessels waiting to be worked. That figure is at least half of what it once was, when up to 12 vessels could be seen at anchorage, waiting for much-delayed berthing slots.

There are still gangs serving the terminal and the target of 2500 moves per day was smashed yesterday when at least 3200 moves were recorded. This is great news for the port.

The Multi-Purpose Terminal (MPT) too is doing well, with two mobile cranes and six straddle carriers in full operation.

At the time of this morning’s stakeholder session, three vessels had been worked and delays are said to be only two days.

“A champion is defined not by their wins but by how they can recover when they fall.”

Trade Winds weekly update volume 5

The “Dar Corridor” which connects Zambia to the Port of Dar es Salaam in Tanzania has come to a grinding halt after Zambia authorised the closure of the Nakonde border indefinitely to curb the spread of COVID-19 infections.

The decision was made after a surge in infections which blamed has been placed on truck drivers coming from Tanzania who themselves have seen a rise in infections.

Chitalu Chilufya, Zambia’s health minister advised that the border would remain shut until further notice, during this time health workers will be retrained with regards to the screening process in hopes of speeding up testing.

Fears are mounting that this will negatively impact and already struggling economy, however President Edgar Lungu announced last week Friday that certain measures will ease, he had this to say “We have experienced reduced revenue and if the status quo remains the same, our economy will plunge into the worst crisis, I have therefore seen it inevitable to reopen cinemas, restaurants and gymnasiums,”

 There is still much confusion with regards to Zambia’s lockdown as there is conflicting reports whether the country is or isn’t in a lock down.

Producing at a loss, South African Miners are becoming more and more concerned as the effects of COVID-19 are negatively impacting deep level mining in the country, last month government allowed deep level mines to operate at half capacity, this is however is not sufficient according to mining giant’s CEO of Sibanye Neil Froneman, he said “Labour intensive mines cannot continuously operate at these levels, so they will either have to restructure or shut down, you can’t keep on producing at a loss”

“We are causing more harm by constraining the economy than we are impacting positively on Covid-19,” said Froneman. “We have gone too far now; we now need to get the economy to start up.”

South Africa produces 75% of the world’s platinum and about 40% of palladium.

Sibanye which is the world’s number one platinum miner and Harmony Gold Mining Co. have ended guidance, whilst the likes of Anglo American Platinum Ltd. and Impala Platinum Holdings Ltd. have slashed their output forecasts.

Chirundu delays have seemingly come to an end, just last week Zimbabwean officials were instructed to move down south and inspect vehicles sitting at truck stops in order to combat potential smuggling, by the weekend this resulted in a 27km queue and drivers further down were being robbed of their possessions at gun point, Zambian officials acted swiftly and came to assist in the control zones on the Zimbabwean side and by the beginning of this week the queue had been reduced to a 7kms, processing of drivers is now moving smoothly and its business as usual.

“Life isn’t about waiting for the storm to pass; it’s about learning how to dance in the rain”.