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Trade Winds weekly update volume 12

Transport violence, following growing concerns over the past week of a possible strike, violence has rocked the transport industry, mainly the focus is on local hauliers that a sporting foreign drivers. On Monday the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) managed to win a court interdict preventing the All Truck Drivers’ Foundation (ATDF) and the SA National Cargo Transport Association (Sancatra) from fomenting xenophobic violence.

A statement issued by the bargaining council’s national secretary, Musa Ndlovu, said the court had granted the NBCRFLI an interdict against the ATDF and Sancatra, preventing them from “organising, encouraging and inciting any other person to participate in protest action or ‘national shutdown’ against the employment of foreign nationals in the road freight and logistics industry on 7 July 2020 or at any other time thereafter”.

However, this unfortunately did not deter some protesters as quite a number of vehicles have been attacked and torched in the process, there were a few “hotspots” in Johannesburg that resulted in freight companies closing their depots.  

Fesarta released the following message they had received: “Attention all SADC truck drivers – South Africa must fall now.

“Zambia, Mozambique, Zimbabwe, DRC, Nigeria, Tanzania, Swaziland – from Friday, 10 July, no South African-registered trucks are to cross any of these countries.”

The message calls for drivers from neighbouring countries to block borders into South Africa as well as requesting South African drivers working cross-border to leave.

“Go back to your country and join Sipho Zungu (ATDF leader) and all other South African hooligans.”

Beitbridge border closure, Beitbridge was closed as of noon yesterday due to a positive COVID case. Initially it was only on the SA side offices that had closed and were being fumigated, any truck that was on SA side or in queue to cross could not move further, today rumours were rife that the border post will be closed for up to 72hours so that a complete fumigation can take place.

Officials are demanding that they be tested prior to returning to work, SARS and management are in talks to come to an agreement. We can confirm that drivers are not being processed at the moment, and no trucks are moving.

Cape Town Port running hot, with the latest —– that took place over the past week at Cape Town Port, the port is now seeing great success from these implementations, so much that the Covid-related cargo build-up could soon be a thing of the past.

Speaking during a webinar, Terry Gale who chairs the Exporters’ Club of the Western Cape (ECWC) said industry reckoned that by the end of the month the backlog should be overcome.

“When the lockdown started we used to have 15-16 vessels at anchorage, with delays lasting for 14-15 days. Some of the delays were a TBA-situation (to be announced).”

Now, with Transnet and private sector freight representatives meeting twice weekly to deliver solutions for slow processing, the port could soon receive direct calls from the same shipping lines who only a few weeks ago started bypassing the port, electing instead to tranship cargo destined for Cape Town at Port Elizabeth.

“We have six gangs – the teams required to operate specialised assets – where we started off with one. Transnet is also training new teams to come on board.”

As for the berths, two were fully operational, meaning imports and exports could move a lot more quickly, and expectations were that a third could soon be back on line.” Said Gale.

More meetings with public-private stakeholders are still required to fully co-ordinate the way forward.

Metals and Engineering sector get the nod, The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has voiced strong support for government’s decision to support the sector which has taken huge strain as an increased global demand and high price hikes affected both raw materials and finished products due to the COVID pandemic.

There is a global shortage of affordable, good-quality scrap metal amid a downturn in global manufacturing as the worldwide lockdowns continue.

“Trade and Industry Minister Ebrahim Patel’s directive to the International Trade Administration Commission of South Africa (Itac) to determine amendments to the Price Preference System guidelines to address the shortage was to be welcomed,” he said, adding that the interventions came at a time when the industry needed all the government support it could get to survive the Covid-19 pandemic and the resulting economic turmoil.

“As Seifsa, we have previously stated our support for the principle of the non-export of scrap metal and are heartened by the government’s decision to support the industry during this difficult time of the pandemic, even as we await a longer-term solution to protect the industry through possible taxes on scrap metal exports,” Nyatsumba said.

Seifsa, which represents 22 employer associations in the broad metals and engineering sector, has in the past supported an export tax on scrap metal due to challenges in the metal industry.

“Keep your face to the sunshine and you cannot see a shadow”.

Trade Winds weekly update volume 11

ZSE suspends operations, The Zimbabwe Stock Exchange advised that all operations have been suspended until further notice.

“Whilst we await the guidance from our regulators on the operational modalities going forward, we notify our stakeholders that trading has been suspended until further notice.” – statement issued by the Secretary for Information.

Brokers have been scrambling to find reasons to inform investors as to why their money has disappeared.

On a positive note, experts have advised that Zimbabwe can significantly narrow its debt if the country manages its vast natural resources in a sustainable manner although the COVID-19 pandemic has worsened Zimbabwe’s debt deficit.

Studies have shown that Zimbabwe holds 13million tonnes of Gold, 2.8 Billion tonnes of Platinum and 16.5million carats of Diamonds just to name a few precious resources.

Dr Moyo said, “with this natural wealth, the country could harness it for development without overly relying on erratic external flows”.   

Kopfontein delays continue, Freight flow at the Skilpadshek border is still taking a knock from COVID related issues, the border which is a vital access point connecting South Africa to Botswana and Namibia is facing continued delays as the Botswana health authorities continue with their inflexible coronavirus testing measures for all truck drivers entering the country which requires the drivers to wait up to 72hours for their results.

 Mike Fitzmaurice, chief executive of the Federation of East and Southern African Road Transport Associations (Fesarta) said that it doesn’t look like the situation is going to change anytime soon.

“Restrictive testing is a real problem at the border, using Kopfontein for alternative access into Botswana because it’s not as busy as Skilpadshek is also still inconvenient because a lot of trucks have to head back south towards the TAC once they have passed through the border.” Fitzmaurice said.

Further South, ATDF (The All Truck Driver’s Foundation) has denied that its organisation disrupted transport on South African roads and intimidated truck drivers, footage has emerged of two cars sporting ATDF banners, parked on the yellow chevron section of the Key Ridge compulsory truck stop between Marianhill Toll Plaza and Pietermaritzburg.

Sifiso Nyathi the national secretary of ATDF said they were just asking for donations from drivers to boost the struggling organisation’s coffers.

The Federation of East and Southern African Transport Associations (Fesarta) said: “There is a car with an ATDF banner stopping and checking trucks looking for foreign drivers, please be alert”

Nyathi rubbished these reports by saying “We weren’t stopping the truck. There is no stop street on the highway. We were only asking for money.”

It’s not the first time that the ATDF has been accused of intimidating truck drivers, especially on the N3 where scenes of violent arson attacks over the past few years, apparently in opposition to foreign nationals working in South Africa’s road transport sector, have sparked wide-scale xenophobic unrest, claiming lives, destroying property and making headlines the world over.

Assistance for Cape Town Port, twenty specialised employees from Durban Container Terminal have volunteered to assist with delays at Cape Town Port, the teams consists of driver articulated vehicles, rubber tyre gantry cranes and ship-to-shore crane drivers boasting over 100 years of collective work experience.

“Both the container and multi-purpose terminals at the Port of Cape Town have been operating at reduced capacity since the introduction of the lockdown regulations.

“However, with the easing of the lockdown, port activities have increased. The container terminal is currently operating at 60% and the multi-purpose terminal at 75% capacity.

“The portside, which is responsible for marine operations, is only operating at 60% human resource capacity, but is able to offer full marine services. Transnet added.

The team will assist in improving cargo movement and extra staff availability.

Acting chief operations officer at Transnet Port Terminals, Velile Dube, said: “Despite all the challenges, we have been able to reduce the number of vessels waiting at anchorage from 11 to five vessels today.

“We have managed to increase the number of gangs from four to five and are now receiving additional staff to help with shifts.”

Cape Town Port seems to be the only port battling with cargo movement, as the City continues to feel the effects of COVID mainly due to it being the epicentre of South Africa’s outbreak.

Settling the debt, one of Zambia’s major copper mines has committed to pay K8 million out of the K58 million it owes the Kitwe City Council.

On Wednesday afternoon, bailiffs paid the Mine a visit in trying to recover debt owed to the local authority, Copperbelt security rushed to the mine in a-bid to intercept the bailiffs but later all 3 parties entered a closed-door meeting.

Journalists were later addressed and were advised that an agreement had been reached on how the debt will be settled.

“The status is that the amount is K58 million. We have negotiated to pay in instalments and today (Wednesday), the mine will pay K8 million and the rest will be paid in instalments. That is the position,” Nundwe said.

“We must be willing to let go of the life we planned so as to have the life that is waiting for us”