TEL: +27 (0) 11 622 0908
PHONE: +27 83 609 8064
sales@abexsteels.com
Please specify the group

hdpe

Trade Winds bimonthly update volume 49

Expected steel price increase, A small transport fee has been added to the price of steel coming from the mills to combat the ever-increasing price of fuel in the region of 2.5% with an expected steel increase on the horizon as well. As of now there is no formal notice from the mills, but the sector is bracing itself for the inevitable as the industry continues to battle with fuel and labour hikes as well as electricity cuts whether the increase is for December or January remains to be seen.

HDPE prices will also increase at the beginning of next year in the region of 6.5% on all HDPE products.

Border updates, for the first time, we can report no issues at any of our surrounding borders, seems that delays at Beitbridge really are a thing of the past.

New covid variant causing havoc in SA, the newly discovered covid variant B.1.1.529 has sent shockwaves throughout South Africa and the world alike, as countries like the UK, Germany and Italy have banned flights from South Africa as of midday today with the European Union considering banning all flights from South Africa as well. The UK has also banned flights from Namibia, Lesotho, Botswana, Eswatini and Zimbabwe.

Israel also announced it will ban its citizens from travelling to southern Africa, covering the same six countries as well as Mozambique and barring the entry of foreign travellers from the region.

The rand has taken a huge knock as the country has been placed on the UK’s red list further weakening an already struggling economy.

Fuel price driving inflation up, South Africa’s transport sector was the largest contributor to inflation in the country, the Bureau for Economic Research says in its latest weekly assessment.

With the headline Consumer Price Index measured at 5% year-on-year in October, it marks the sixth consecutive month that inflation has been above 4.5%, the Bureau says.

This is also the midpoint of the Reserve Bank’s target, hence last week’s 25 basis point increase in the repo rate.

The largest contributor to the annual inflation figure was transport, which climbed 10.9% year-on-year, adding 1.5% pts. This was mainly attributable to fuel prices which increased by 23.1% year-on-year, up from 19.9% year-on-year in September.

Local mines could invest R60 billion to combat load shedding, South African mining companies are poised to spend 60 billion rand ($3.8 billion) on renewable energy projects in hope to help ease the country’s electricity supply crisis.

The industry is planning 3,900 megawatts of solar, wind and battery energy projects, which could supplement supplies from state-owned utility Eskom Holdings SOC Ltd.

Earlier this year, President Cyril Ramaphosa raised the limit on companies producing power without a license to 100 megawatts from 1 megawatt, clearing the way for miners to start generating their own electricity.

South Africa experienced record outages this year, stifling an economic rebound from the pandemic in the continent’s most industrialized economy.

The industry, including the world’s top platinum and rhodium producers, is the country’s biggest user of electricity.

Sibanye Stillwater plans on adding 475 megawatts of solar and wind-power capacity, whilst Anglo American Platinum Ltd aims to start generating around 100 megawatts of renewable power at its Mogalakwena mine by the end of 2023.

Impala Platinum Holdings Ltd. is weighing options to have all its mines in South Africa and Zimbabwe use solar power.

SA Port costs too high considering turnaround time, South Africa’s private sector freight industry, for the most part, believes that the country’s port costs are too high.

Especially at congested ports like Durban.

Constant equipment failure, labour issues, and efficiency headaches contribute to widely shared criticism that the country’s ports are not being run as they should.

Looking at where the World Bank rated SA ports during a performance index released in May.

Not only were South Africa’s ports outperformed by the likes of the Port of Djibouti, but it also served to stoke fears that nearby ports like Walvis Bay, Maputo, Beira and even Dar es Salaam, were sniffing at a slice of the country’s ports’ pie.

Transnet National Ports Authority doesn’t seem to be sharing the view that the ports aren’t run properly.

In a media briefing, Transnet said that they were so efficient that the price was almost irrelevant, suggesting that they were worth the cost.

What exporters and importers pay to ship through South Africa’s ports, it said, translated into savings elsewhere along the supply chain.

Brace yourselves, Airfreight rates to rise further, Airports are under the whip as demand continues to exceed capacity and Covid-safe work practices and apparent labour shortages continue to place immense pressure on UK, EU, US and global air freight hubs, creating congestion from Heathrow to Azerbaijan.

According to UK-based logistics provider Metro Shipping which points out that while there are different situations at different airports, the demand for air cargo is exceptionally high. In addition, ground-handling operations are proving to be consistently ineffective at servicing the upturn in freighters, and passenger freighters, with problems at Heathrow, Amsterdam, Brussels and Frankfurt in Europe alone.

Metro believes that despite the congestion, the already exceptionally high airfreight prices will climb further as supply chain disruptions force ocean freight shippers to switch to airfreight.

The issue is however endemic as US, European and Asian hubs are experiencing the same problems. Metro believes it’s unlikely to improve any time soon as ocean freight is continuing to look at airfreight as a logistic solution.

Predictions are that the air cargo boom will continue well into next year, and possibly 2023, as it may take that amount of time for the passenger schedule to return to pre-Covid levels.

Zim economy on the right path, the Zimbabwean government has broken the shackles the economy has been in and is on the right path to start realising meaningful returns despite economic headwinds that have hindered its progress.

Mr. Holtzman, Chairman of CBZ Holdings, Zimbabwe’s biggest bank, expects a full turnaround by the end of this year after a challenging financial year.

The growth prospects for Zimbabwe come at a time where the IMF has upgraded its estimate for economic growth this year to 6 percent from 5.1 percent on the back of increased activity within the manufacturing and construction sectors.

Zimbabwe currently possesses potential which if exploited correctly can turn the country’s fortune around with agriculture being singled out as one sector which has gained a considerable amount of traction as farmers are now drifting towards high-value crops for the export market.

Excluding the agriculture sector, Zimbabwe currently has huge nickel and lithium deposits, minerals whose importance is increasing given the global trends in technology where economies are moving towards the use of electrical cars and cleaner energy.

DRC looking to develop domestic battery manufacturing, DRC mines the majority of the world’s cobalt, an ingredient in lithium-ion batteries, and is Africa’s leading producer of copper. Demand for the minerals is rising to power electric vehicles and electronic devices.

However, on the flipside DRC, which ranks among the world’s least developed countries, exports its minerals for only a fraction of the final cost of the batteries, which are mostly manufactured in Asia.

Prime Minister of DRC, Sama Lukonde announced a series of measures aimed at speeding the development of a battery manufacturing industry which includes the creation of a “Battery Council” with the aim of driving the government’s policy to develop a regional value chain around the electric battery industry.

Minister Lukonde did not provide specific details about how long these initiatives would take to set up or how they would be funded, although several development banks, including the African Development Bank, has signed a pledge to help develop Congo’s battery industry

President Hakainde Hichilema of neighbouring Zambia, Africa’s second-largest copper producer has said that his country is ready to work with Congo and others in the region to develop Africa’s industrial capacity.

Bureau Veritas hit with cyberattack, Bureau Veritas (BV), detected an attempted cyber-security breach last week, forcing the company to take its data and servers offline.

Earlier this week it was reported that BV had decided to immediately institute the necessary preventative measures.

The attack comes after BV recently warned that it had become aware of increased risk to global supply chain interests, especially against the backdrop of ongoing pandemic challenges.

The disruption caused to supply chains the world over by the virus, risk assessors say, is playing into the hands of cyberattackers wanting to exploit existing conditions of instability.

Please note all BV inspections have been halted for now and we will continue to monitor the situation.

World’s first electric container ship sets sail, The world’s first electric and self-propelled container ship, Yara Birkeland, has set sail.

The self-propelled container ship departed from Horten in Norway on the morning of November 18 and arrived in Oslo in the early evening.

A joint venture between chemical production firm Yara and maritime technology company Kongsberg, the vessel is expected to cut 1 000 tonnes of CO2 and replace 40 000 trips by diesel-powered trucks a year.

It will be used to transport fertiliser between Porsgrunn and Brevik.

Plans for the construction of the vessel were announced back in 2017.

Its launch marks the start of a two-year testing period of the technology that will make the ship self-propelled, and finally certified as an autonomous, all-electric container ship.

The 80-metre-long vessel has capacity for 120 TEUs and the cost of construction is estimated at $25 million.

In parallel with the project, Yara has initiated the development of green ammonia as an emission-free fuel for shipping, through its newly launched Yara Clean Ammonia.

Yara, the world’s largest producer of fertilisers, relies on ammonia to make fertiliser, and to help feed an ever-growing population. At the same time, current ammonia production represents 2% of the world’s fossil energy consumption. This corresponds with about 1.2% of the world’s total greenhouse gas emissions.

 

 

 

 

“Nothing in the world is ever completely wrong. Even a stopped clock is right twice a day”

Trade Winds bimonthly update volume 48

Steel price increases on the way? After our last Trade Winds update advising of a steel increase of R1200.00/Ton set for next week, rumour has it that the two other major steel mills are increasing their prices as of next month.

Prices are increasing, demand remains high but with ArcelorMittal’s care and maintenance closure at their Newcastle Plant, supply has dipped and is expected to continue to be low throughout Q4 and into Q1 next year.

The care and maintenance is expected to start from 22nd November 2021 and run into early next year.

Whilst the strike remains in place at the Vanderbijlpark plant there is little to no disruption at the moment.

Plastics, HDPE, Rubber and PVC have once again climbed in pricing due to international force majeures as well as the rising price of oil which directly fuels the raw material price of the abovementioned products.

Border updates, Beitbridge is currently recording preclearance times that have not been seeing in decades.

According to the latest GPS data received from the once heavily congested transit, it is now taking less than 12 hours for a truck to pass through the border with the latest on-average processing times as follows:

  • Four hours from Zimbabwe into South Africa.
  • Eight hours from South Africa into Zimbabwe.

To put it into perspective, at the Kazungula Bridge across the Zambezi between Botswana and Zambia, processing still takes longer than 24 hours on average however, the difference is that Kazungula is a single-window one-stop border post compared to Beitbridge which isn’t.

Closer comparison reveals that at Kazungula it takes up to 25 hours for northbound trucks entering Zambia.

Where week-long waiting queues had been the norm up until early October, the speed in which cargo is now being processed at Beitbridge, is simply due to transporters adhering to preclearing procedures. If trucks arriving at the border with documentation not being in order, they are then set to a truck yard where they are then marshalled towards a holding area.

Fines of R20 000 had been recently introduced by the SA Revenue Service for non-compliance with clearing procedures.

This is great news for importers, exporters and everyone involved at the border as the notorious congested border crossing is now a free-flowing port.

Truck drivers’ strike struck off the roll, the imminent truck driver struck has been cooled as government has stepped in.

The South African Transport and Allied Workers Union (Satawu) has welcomed government’s plans to crack down on foreign drivers who are working in the country illegally.

The Departments of Labour, Transport, Police and Home Affairs recently announced that they may change legislation to make it tougher for non-South African workers in the sector which includes the prohibition of foreign nationals from operating South African registered trucks using foreign professional driving permits.

It follows last month’s blockading of several national highways by striking truck drivers.

Load-shedding to be eased by energy investments, as new electricity generation capacity comes online, energy investments are said to help overcome the debilitating load-shedding that the country is currently experiencing.

Cyril Ramaphosa has said that energy continues to be an area of growth in South Africa as the 25 preferred bidders in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme were together, expected to invest around R50 billion into the economy.

South Africa has recently secured an initial commitment of around R131 billion to fund a just transition to a low-carbon economy by investing in renewable energy, green hydrogen and electric vehicles.

The country has been once again rocked by power cuts this past week with stage 4 load-shedding disrupting the day to day lives of citizens and businesses.

Airfreight on the rise, latest figures show on airfreight that year-on-year capacity for October has increased by 17% with a three percentage point drop-off in dynamic load for the same year on year period, with take-up currently standing at 68%, an increase of 2% from the previous month suggesting that demand is slowly catching up.

Interestingly flights ex-Asia Pacific-Europe remained virtually full, lifting rates by a further 20% over September 2021, while Apac-North America rates reached a double-digit level per kilo. Overall, international rates rose 10% month over month.

Although capacity for air cargo is increasing, neutral consolidator CFR Freight says available space is limited and that rates are regularly upsold at the time of booking due to excessive demand.

It is recorded that rates have increased by up to 37% at the end of September compared to the previous year.

Maersk signs transport deal, Vestas, a Danish wind turbine manufacturer has gone into a joint venture with Maersk in a long-term strategic partnership for all its containerised transport needs which in turn will ensure that Vestas gets direct access to container capacity at a fixed price

The deal includes door-to-door transport from the company´s suppliers to their factories and service warehouses, as well as containerised site parts and transport equipment.

Airfreight shipments are included in the deal.

Non-containerised road transport and outbound shipments will continue to be managed by DSV and other partners.

Metal sector to continue its recovery into the new year, S&P Global Market Intelligence states that the metals sector is set to continue its rebound from the effects of the covid-19 pandemic through 2022.

Pent-up consumer spending, government stimulus efforts and the accelerating energy transition are all contributors to the continuation of driving demand, prices and exploration budgets.

The upswing in demand growth will drive prices higher across a range of metals in the medium term and there is a projection of increase in iron ore price volatility into 2022 due to the combination of underlying market tightness, potential supply disruptions and project delays as well as global supply and power constraints.

Copper on the other hand is expected to have a demand from solar and wind energy generation to reach 852,000 tonnes by 2022 and the growing electric vehicle market to account for 1.1 million tonnes in 2022.

Margins are also expected to remain healthy in 2022 for most metals, following the high prices and relatively steady costs experienced by producers in 2021.

Gold price climbs to 5-month peak, Gold kept its hot streak going this past Wednesday, rising by 2% to a five-month high after a surge in US consumer prices last month elevated gold’s appeal as an inflation hedge.

Spot gold was up 1.1% at $1,852.36 per ounce, having earlier hit its highest since June 15 at $1,857.09.December gold futures rose 1.4% to $1,856.70 per ounce.

Zimplats planning major expansion, Implats’ Zimbabwe-based unit Zimplats has announced plans to invest a total of US$1.8 billion over the next seven years towards mine expansion, as well as the establishment of a base metal refinery.

The bulk of the funds, amounting to US$386.2 million, will go towards the development of Mupani mine, which is a replacement for the depleting Rukodzi, Ngawarati and Mpufuti mines, whilst the base metal refinery plant will cost US$200 million.

The miner also plans to set up a 110 MW solar power plant at a total cost of US$201 million.

An expanded smelter will cost US$280 million and will see smelting capacity increased from 132 kilotons to 380 kilotons of smelted concentrators, while the development of Hartley mine will cost US$289 million.

The project will also enhance the company’s capacity to smelt its own resources and for local third parties.

Zambia implements tax breaks, Zambia will implement tax breaks for mining companies, with mining royalties to be deductible from income taxes, something the mining companies have complained about that not being able to deduct royalties resulted in double taxation and deterred investment.

Finance Minister, Situmbeko Musokotwane, did not discuss any changes on the royalty rates. Royalties are currently ranging from 5.5% to 10% which is dependent on the copper price.

Minister Musokotwane also said that the government will cut its budget deficit target, and that debt restructuring negotiations with creditors are expected to conclude in early 2022.

Gemfields finds largest emerald at its Kagem Mine, Gemfields has found a emerald weighing in at a 7,525-carat (1,505g) named Chipembele, which means “rhino” in the local dialect of Bemba.

Whilst there are no official records, it is extremely rare to encounter a gemstone weighing more than 1,000 carats and only a couple of dozen unique enough to deserve their own name.

The last time a comparable emerald was found was in 2018, when the same mining company unearthed a 5,655-carat emerald, name Inkalamu, meaning “lion”. Prior to that, a 6,225-carat dug up a emerald in 2010, which was named Insofu – Bemba for “elephant”.

  

 

 “You are today where your thoughts have brought you; you will be tomorrow where your thoughts take you”

Trade Winds bimonthly update volume 43

Bulls are on the rampage, in the aluminium market!  The Shanghai Futures Exchange contract paved the way and rocketed to a 13 year high on Monday.

The London Metal Exchange followed shortly thereafter hitting its own 10 year high of $2726.50 per tonne on Tuesday.

The driver of the rally stems in China’s own supply chain problems with energy restrictions thereby reducing smelter output.  Shanghai exchange inventory has fallen from more than 392,000 tonnes in April to a current 248,926 tonnes and the world’s largest producer continues to absorb aluminium from the rest of the world.  China imported 1.06 million tonnes of primary metal last year and another 744,000 tonnes in the first half of 2021 and there are no signs that anything is slower down anytime soon!

The copper price has fallen slightly on the back of slower factory activity in China but the outlook into next year sees the price remain in the $9,000 average.

Iron ore prices plunged due to production curbs in China on Wednesday and the expectation is for further price drops for the remainder of the year. Baoshan Iron and Steel Company, one of the largest listed producers in China predicts further decreases this year.

International supply constraints remain, the end of the current “norm” seems to be but a dream, with constant uncertainty surrounding pricing and delivery; projects, quotes and contracts are being heavily affected.

Supply of material remains inconsistent with delivery times often pushed out on a weekly basis, mill-rollings are frequently being pushed back by at least 3 months.

Steel prices are somewhat levelling out however HDPE and rubber prices are on the rise with back-to-back increases, the international petrol price is a big contributor as the price of fuel affects the raw material directly whilst some force majeure conditions and material allocations remain in place as well, resin producers have implemented increases for the last two months with some already nominating for a further increase at the end of September.

Resin production has returned for the most part, and can even be considered robust, however, after fulfilling contracts, producers are holding back resin to rebuild inventories, leaving little resin available for spot sales.

Numsa begins demonstrations, The National Union of Metalworkers of South Africa has started with nationwide demonstrations, while wage negotiations with the Steel and Engineering Industries Federation of Southern Africa are ongoing.

It is noted that the nationwide demonstrations, so far, are peaceful demonstrations and not picketing which may only be embarked on in support of a protected strike or in opposition to a lock-out, but neither parties have served strike or lock-out notices on the other.

Negotiations are ongoing after Seifsa’s wage offer in July was accepted by other trade unions but Numsa shortly after declared a deadlock with the federation.

Border updates, it has been over a week since cargo processing issues at the Beitbridge Border Post resulted in truck queues stretching south for kilometres, the situation seems nowhere near being resolved.

Drivers have been advised to stock up on supplies such as food and water in Musina as the queue was at least 11 kilometres long and going nowhere slowly.

It is said that dawn-to-dusk operating hours by clearing agents north of the border had resulted in delays south of Beitbridge, adding to the backlog were Zimbabwean drivers who are allowed three days to transit through their country compared to counterparts from neighbouring states who aren’t.

The dawn-to-dusk and transit time issues are relatively new, a third obstacle at Beitbridge has been in the mix for years, a weighbridge for northbound traffic that’s situated on the other side of the N1 where trucks going north have to cross over into the oncoming lane for this inspection, geographical and space constraints are the reason behind this procedure which makes matters worse, at the Vehicle Inspection Department on the Zim side, all northbound trucks have to be weighed again, causing traffic to back up over the bridge and blocking the movement of traffic going into the truck park immediately south of the Limpopo River crossing.

In addition, construction work north of the border is constraining facilities, impacting on the manoeuvrability of truck traffic.

The Kazungula One-stop Border Post bridge across the Zambezi River is not yet operating at the desired speed expected of a modern multimodal transit.

More than three months after the opening of the bridge, the streamlining system that is in place is still reporting processing times in excess of 30 hours, given existing cross-border challenges, such as unaligned Covid-testing measures delaying truckers at various transits, transporters were hoping that teething issues at Kazungula would soon be sorted out and that hopes of a true one stop border post could be in place.

Keep expectations low on cargo delivery, latest maritime consultancy findings are showing that carriers are no less reliable, but they’re also no better.

The Global Liner Performance report, which includes figures up to and including July, reveals that reliability has been hovering around 35%-40% for most of the year.

In July it dropped by -3.8 percentage points month-on-month, on a year-on-year level it was down a massive -39.7 percentage points. The average delay for late vessel arrivals continued to deteriorate. The level of delays this year has been the highest across each month compared to previous years.

Maersk Line was the most reliable carrier in July (47.3%) followed by Hamburg Süd, the only other carrier with a figure higher than 40% whilst Evergreen was the least reliable, coming in at 16.2%.

None of the carriers recorded a month-on-month improvement.

Fuel hike again, despite expectations of a price drop, the price of unleaded and lead-replacement petrol increased by 4 cents per litre this past Wednesday.

However, diesel prices will go down by 15 cents per litre for 0.05% sulphur and 14 cents per litre for 0.005% sulphur.

There is also the implementation of a slate levy, with an increase of 8 cents per litre implemented in the price structures of petrol and diesel. The slate levy is a mechanism implemented to finance under-recovery by the South African petroleum industry.

Whilst there is a slight relief in a diesel decrease, the effects will be null and void coming of the back of the huge increase last month, freight has been directly affected as running costs have increased as well as the petrol price increases directly affecting Rubber and PVC prices.

Zimbabwe to use IMF aid to boost currency, Zimbabwe will use more than half of the $961 million allocated by IMF in the form of special drawing rights to support its struggling currency.

The government abandoned a 1:1 ratio between a precursor of the reintroduced Zimbabwe dollar and the U.S. dollar in February 2019. The currency now trades at 85.82 to the U.S. dollar and even lower on the black market.

The IMF injected a record $650 billion of reserve assets to build confidence and stability in the global economy in the wake of the devastation caused by the pandemic. The reserves are allocated to all fund members, with an estimated 70% going to the Group of 20 largest economies and just 3% to low-income nations.

Zimbabwe won’t use any of its reserves to pay towards the $8 billion in external debt it owes, even though its arrears have effectively blocked it from borrowing more money from multilateral lenders.

Hippo Valley Estates, is planning a US$40 million cane development project and has already cleared half of the 4-000 hectares designated land secured for the project.  It is a partnership between Government and local banks and the hope is to boost the current sugar output of 400 000 tonnes per year significantly.

Zambia plans to reboot economy, after years of mismanagement and defaulting on international debt loans, Zambia is looking at turning its finances and fortunes around following the inauguration of a new president Hakainde Hichilema on August 24.

One of the first major steps by the newly elected president, was the appointment of fellow economist Situmbeka Musokotwane as the new cabinet’s minister of finance.

Sworn in on Friday last week, Musokotwane, in much the same vein as President Hichilema, got right down to business by announcing that copper production would be a primary objective of the new government as it strives to double the production of the raw metal by 2026 and if successful, will see Zambia’s copper output increase to two million metric tonnes in five years’ time.

The precious metal accounts for roughly 70% of Zambia’s revenue from export earnings however under former president Edgar Lungu, a wedge was driven between the previous government’s relations with the mining industry, causing exports to dwindle while government debt ballooned due to unchecked infrastructural expansion projects.  It was reported on BBC news 1st September that President Hichilema is horrified at the empty treasury he has inherited and was quoted as saying the hole is much bigger than expected but remains determined to change things around and create a corrupt free and freshly energized country.

The immediate changes by Hichilema resulted in the kwacha and government bonds surging to record highs as the international business community had a more positive outlook on Zambia.

The best way to dig Zambia out of its debt hole was to fill it with copper, said Musokotwane.

Mozambique’s Cabo Delgado returns to normal, over a thousand people in Mozambique’s Cabo Delgado region who had been displaced by insurgency, have successfully returned to their homes. Local refugees have been moved from the Quitunda camp and are now back in Palma to rebuild their lives.

The insurgents operated from the north in a town called Mfundi which had a gas plant, Rwandan forces moved to Palma and went on to Quitunga until they captured the stronghold, Mocimbia de Praia, which was the main city where operations were being planned by IS.

Once the Rwandan forces had secured the central and northern axis of the insurgent operations, they began reclaiming the villages in the joint operation with Mozambican troops.

Focus now is on moving people out of the displacement camps back into their homes.

A Defence Force spokesperson says it’s still too early to tell when they will be able to pull out of Mozambique because while there have been small victories, the instability persists in other parts of the region.

Spring is in the air!  We would like to wish all our customers a happy spring day for earlier this week!

 

 

“It is spring again. The Earth is like a child that knows poems”

Trade Winds bimonthly update volume 22

Prices on the rise as materials disappear, buckle in!!  Further steel price increases have been announced for November which will be the ninth consecutive increase this year exacerbated by low stocks countrywide.  South Africa is facing a steel shortage and explosive prices.

This trend has now moved over to the HDPE and Plastics sector and shortages of raw materials are being experienced by all the major manufacturers. Output as a general for HDPE polymers was 3,300 Tons per month which then dropped to 2,500 tons and as of the latest notice a further 15% drop is expected in production.

Various factors have been blamed both locally and internationally and Force Majure has been announced by many different industries who find themselves unable to perform to their pre-covid-19 service and production levels.

Output as a general for HDPE polymers was 3,300 Tons per month which then dropped to 2,500 tons and as of the latest notice a further 15% drop is expected in production.

Border updates, Chaos at Beitbridge over the past week, A motorist sadly passed away last week when a bakkie travelling south towards Musina from the Beitbridge border post between South Africa and Zimbabwe collided with a truck that had reportedly crossed into the oncoming lane to overtake gridlocked traffic heading north. The fatal collision once more demonstrates that traffic officials should be held culpable for allowing cars and trucks going north to drive three abreast on a single-lane highway.

Intervention seems to be on the cards after the build-up of traffic south of South Africa’s Beitbridge border with Zimbabwe has deteriorated to such an extent that some sources say it is the worst it has ever been this century.

This comes after northbound transporters stuck at the Limpopo crossing posted video footage on social media of the Transit Assistance Bureau clearly showing how trucks, cars and buses were milling around as if no traffic officials were present to establish order. The queue already stretched to the Baobab truck stop some six kilometres south of the border.

Suggestions were made to officials that the border should be opened up to clear the congestion and alleviate pressure on officials clearly incapable of coping with mounting volumes.

Since the suggestions were made, South Africa’s Beitbridge border into Zimbabwe has virtually transformed and a recorded 18km queue has been reduced down to less than 1km. The northbound queue has also has also been reduced to a single lane of traffic.

Last week at the Lebombo Border Crossing there was also a backlog as vehicles trying to cross into Mozambique from South Africa came to a standstill, chrome trucks, general cargo and the bakkie brigade loads jockeying for position whilst customs continue to take their time.

Call went out for the border to operate 24/7 and it seems that the cries were heard, transit times at the border have been substantially reduced with around 450 trucks cleared every 24 hours.

Meanwhile there is no certainty about what the border authorities have done but it’s obviously helping, bringing much-needed relief to private sector interests who often complain of extended standing time at the border.

The real test will come towards the end of the week as volume often picks up towards the weekend.

Finally, the opening of the Kazangula Bridge may happen before the end of the year, the bridge was initially supposed to be completed back in 2018 but due to various delays there is now a promising outlook that the opening will be soon, this comes after it was reported that ZRA had announced that it would be moving its regional office from Livingstone to the southern Zambian town from which the much-hyped linkage has taken its name.

Speaking to a Zambian news site, ZRA emphasised that the $70-billion bridge into Botswana would boost trade in Zambia’s southern province significantly, with tangible benefits for revenue collection.

Transporters will also not need much persuasion to divert traffic away from other north-south route border posts such as Beitbridge, considering the shambles it has been of late.

Zimbabwe mineral production increases, The Zimbabwe mining industry has managed to stay afloat with sustainable, profitable and balance production results whilst still fighting off the challenges faced within the mining sector.

Adding onto this, the mining sector has become quite optimistic about 2021 with the ever-improving commodity prices and a favourable local fiscal the sky is the limit for Zimbabwe in 2021.

90 percent of miner’s plan on upscaling production in the coming year with the other 10 percent expecting production to remain the same. Gold output is expected to increase around 30% in the coming year, followed by platinum and coal spurred by world commodity prices that continue to move upwards. 

Terrorism crossing the border!  The Islamist terrorist group operating in the Cabo Delgado region of Mozambique have made their away across the border to Tanzania, where it is reported 20 people were beheaded.

The attack was carried out against the village of Kitaya, in Mtwara province, near the border with the Cabo Delgado district of Palma.

According to military sources cited by the newsheet, the terrorists entered Tanzania by sea, going up the Rovuma river that forms the border between Mozambique and Tanzania.

The raiders burnt down houses, destroyed an armoured vehicle and stole money and military equipment. The terrorist network that calls itself “Islamic State” claimed responsibility for the attack, and reported three Tanzanian soldiers had been killed in the ensuing battle that followed.

“Rain does not fall on one roof alone”

 

 

HDPE Price Increase Notice

Dear Valued Customer,

Please click on the following link for the latest HDPE Price Increase Notice.

Kind Regards,

Ropa Mhlanga
Operations Director – Southern African Region