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28 June 2017
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Maritime Review Africa
Making Maritime News
South African container exports show growth  

“After a 2016 downturn in the mining and mineral resources sector, commodity prices have recovered significantly through April, resulting in South African container exports showing year-on-year growth of 20%,” says Jonathan Horn, Managing Director of Maersk Line Southern Africa

He explains that Asia exports grew by 37% year-on-year over the first quarter, on the back of growing demand for local mining commodities. Asia is South Africa’s largest export corridor, making up around 45% of total exports. “The global consumer demand as well as infrastructure spend – particularly from China due to plans around building a modern-day version of the ancient Silk Road – have helped boost the demand for South African mining commodities. The growth has also been supported by a move in some instances from bulk to containerised flows.”

Demand for mining commodities may have picked up early this year but commodity volatility is also expected throughout the year. Recently, chrome demand has dropped significantly, while manganese demand has increased. According to Horn, “Commodity demand generally follows short volatile cycles and, as commodity prices have recently decreased significantly – a reflection of lower demand – market growth for the rest of the year, while difficult to predict, is expected to be lower, in the 2-4% range.”

Refrigerated exports recorded growth of about 7% compared to the first quarter of 2016, which Horn says is a reflection of a robust grape crop and strong demand in Europe for South African grapes. “Looking forward, the citrus crop, which represents more than 50% of South Africa’s refrigerated container exports, is expected to grow by 5-7% on the back of strong crops in the North, while crops from the Eastern Cape will likely decline.”

Looking specifically at imports, which represent 56% of total container flows, Horn says that while the market has grown by 2% year on year, it is still slightly lower than the 2013 level which represented significant growth. “Import growth in 2016 contracted by around 5% and the market has essentially rebounded from this poor performance. Import growth in the first quarter has been stronger than expected. This is linked to a more favourable rate of exchange that has made imports more affordable and allowed businesses to restock inventory at an affordable level.”

While this is a positive development, Horn says that only growth over a longer period will signify sustainable rebound on consumer confidence and purchasing. “There is no clear evidence that consumer spending is on a sharp rise, and thus 5% growth is not likely to continue. Rather, a slightly lower 1-3% container import growth can be expected for the rest of year.”

Along this same thread, Horn concludes that despite this quarter’s promising overall trade results, he is cautious about being too optimistic, given that significant up and down market swings are common in the South Africa container market in recent years. “Despite the strong year-on-year growth of 10%, the 2017 market size is only 5% larger than the 2013 market size, which means the long-term growth has only been around 1% per annum in the last five years. Until a significant upward swing is seen in local consumer spending as well as consistent mining commodity demand from China, the market growth is likely to be in the low single digits for the rest of the year.”

Transnet National Ports Authority (TNPA) at the Port of Ngqura has officially opened its administration building, which represents an investment of R255 million into the economy of the Eastern Cape Province. The new 10 000 m2 building will cater for Ngqura’s growing human resources as the port continues to expand. Ngqura is positioning itself as a major container transhipment hub for sub-Saharan Africa and an important link connecting trade between South America and Asia.   Other projects within a recent R700 million capacity installation investment at Ngqura included construction of the port’s administration craft basin for pilot boats and tugboats, and the vacuum based automated mooring system which we introduced as a first for an African port. 
Contact THE EDITOR
if you have any news or information to share.
IN BRIEF

Offshore field development

MOZAMBIQUE: Aker Solutions was awarded a contract to deliver three umbilicals and associated equipment at ENI's Coral South project, Mozambique's first offshore field development. The work scope includes three steel tube umbilicals that will total more than 19 kilometers in length and connect the Coral South floating liquefied natural gas (FLNG) facility to the field's subsea production system. The umbilicals will be manufactured at Aker Solutions' plant in Moss, Norway, and are scheduled for delivery at the end of 2019.


New mussel farm opens 

SOUTH AFRICA:  African Olive Trading, through its partner company, Gallo (Pty) Ltd, last week opened a new mussel processing plant in Velddrif, a small fishing coastal town which is 90 minutes away from Cape Town. Currently, the farm has 11 mussel rafts and when they are operating at full capacity, they have the capacity to farm between 400 and 500 tonnes of mussels per annum. 


Harbour tugs respond to grounding

KENYA: Following the grounding of the MV Theresa Arctic off Kilifi Port, the Kenyan Port Authority mobilised two harbour tugs to assist. With no success, Smit Salvage of Netherlands was contracted to partner with local firm Alpha logistics. The plan is to lighten the vessel, but there is currently no risk of pollution. 

TENDERS

MARINE SAMPLE TRANSPORT:
The Department of Agriculture Forestry and Fisheries is looking to appoint a service provider for the transport of marine samples to the EU
Closing date: 30 June 2017 
Contact: Pinky Moloi 


PORT SECURITY SERVICES:
The Kenya Ports Authority is calling for bidders for the supply and commissioning of an International Security System and Integrated Security System.
Closing date: 07 July 2017 
For more information click here


TESTING OF LIFTING MACHINERY:
ARMSCOR is seeking to procure the services for three years for the performance testing and examination of lifting machinery at the Armscor Dockyards in Durban and Simon's Town.
Closing date: 13 July 2017 
Contact: Bolekwa Moea


TRANSACTION ADVISORY SERVICES:
The Nigerian Ports Authority seeks Transaction advisory services for PPP contract for the development of deep sea ports.
Closing date: 17 July 2017 
For more information click here


TRANSACTION ADVISORY SERVICES:
The Nigerian Ports Authority seeks Transaction advisory services for the concession of Koko Port.
Closing date: 17 July 2017 
For more information click here


TRANSACTION ADVISORY SERVICES:
The Nigerian Ports Authority seeks Transaction advisory services for the concession of Lilypond Container Terminal.
Closing date: 17 July 2017 
For more information click here


EFFLUENT TESTING:
TNPA, Saldanha Bay requires a service provider for sampling, testing and analysis of industrial effluent within the port of Saldanha for 24 months.
Closing date: 18 July 2017 
Contact: Natalie Joubert


CAISSON CLEANING:
TNPA, Saldanha Bay requires a service provider to clean necessary equipment on the caissons of the ore jetty.
Closing date: 25 July 2017 
Contact: Natalie Joubert

 

ANNUAL MARINE GOLF DAY

A must-attend event if your company is a supplier or service provider to the ship repair, oil & gas & general engineering sectors. This event creates an opportunity for those wishing to create brand awareness, and those wishing to expand their client base. Challenge your fellow industry members to find out who the top golfer is!
 
For sponsorship packages or general queries,
please contact Sean Jansen via email or on 073 212 2882

FRIDAY 7 JULY   |  Westlake Golf Course, Muizenberg

JULIAN HURRIE | RADIO HOLLAND
Radio Holland recently announced the appointment of Julian Hurrie as the company’s new General Manager for South Africa.  Having served nineteen years at offshore supply company, Servest Marine – with seven years on their operations team and twelve years as Divisional Managing Director - Hurrie  brings a wealth of experience and expertise to his new role as General Manager for Radio Holland South Africa.
QUAY QUOTE:

“It is clear that we are currently in a state of cooperation in government and I am encouraged by talks of more resources becoming available for the sector,””

says Dumisani Ntuli, Acting Chief Director: Maritime Transport Policy and Legislation (DoT) in an article in our 15th Anniversary issue. (you can order your hardcover version below) 

ORDER YOUR COPIES NOW
SPECIAL COMMEMORATIVE ISSUE
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The Special 15th anniversary issue is now available. 
This issue stands as a snapshot of the current status quo in the some of the sectors of the industry with a number of indepth articles covering fishing, marine engineering, services, sea crime and much more.
We also profile a number of up-an-coming marine professionals in our new series: On the Radar.
This is a keepsake
for the shelf. 
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