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THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI) 2008 –BRENDA HORNE – CEO of MCLI

THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI) 2008 –BRENDA HORNE – CEO of MCLI. AGRICULTURE TRADE AWARENESS CAMPAIGN Date: 17 JULY 2008.

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THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI) 2008 –BRENDA HORNE – CEO of MCLI

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  1. THE MAPUTO CORRIDOR LOGISTICS INITIATIVE (MCLI) 2008 –BRENDA HORNE – CEO of MCLI AGRICULTURE TRADE AWARENESS CAMPAIGN Date: 17 JULY 2008

  2. 1. MAPUTO CORRIDOR BRIEF OVERVIEWRe-established proven transportation route for regional trade as well as to international markets for SA, Zimbabwe, Swaziland, Botswana through Mozambique. Tzaneen SOUTH AFRICA Palabora MAPUTO CORRIDOR Steelpoort Nelspruit Belfast Komati poort Middleburg Maputo Ermelo Piggs Peak Johannesburg Secunda SWAZI- LAND 1 OF AFRICA’SPROMINENT ECONOMIC HUBS

  3. WHAT IS THE MCLI VISION To become the leading corridor stakeholders’ coordinator, contributing to the aims and objectives of the Maputo Development Corridor. This will be achieved by working towards a Logistics Corridor based on excellence – a cost-effective, continuous, reliable logistics route with positive returns for all stakeholders. MISSION To support the development of the Maputo Corridor into a sustainable, highly efficient transportation route, creating an increasingly favorable climate for investment and new opportunities for communities along the length and breadth of the Corridor. STRATEGIC OBJECTIVES OF MCLI • To coordinate the views of investors, service providers and users of the Corridor to engage with public sector to promotedevelopment and change, making the Maputo Development Corridor the first choice for the region’s importers and exporters alike. • Toinformthe market about the Corridor and to market the strategic • benefits and opportunities offered by the Corridor GOAL “Maputo Corridor the first choice for the Corridor Region’s Stakeholders”

  4. MPDC SHARE HOLDING • As from Jan 2008 • Portus Indico -Private Sector 51% • DPW 48.5% 24.735% • Grindrod – 48.5% 24.735% • Mozambique Gestores 3% 1.53% • Public Sector 49% • CFM 33% 33.000% • Government 16% 16.000% • 100.00%

  5. THE NEW BOARD OF MPDC- MAR 2008 • Port Master Plan - ensuring that the Port  is  armed with a business strategy that  is  farsighted and robust enough to weather the inevitable peaks, while remaining flexible and nimble enough to make the most of the opportunities which presented themselves.  • In the context of regional development and growth, Port Maputo would be moving towards building the various business entities at the port into a single unified enterprise which would ensure that regional standards are set and which would service, with increasing efficiency, the growing volumes through the Port.   • Regarding new investments - investments would be made in supporting operations such as depots, warehousing, packing and unpacking facilities, amongst others. • “Our goal is to build a unified “Port Maputo” where every user and operator will have a voice and be an integral part of its growth and future success as the best service provider in the region.” said Ferraz the new Chairman of MPDC -

  6. MPDC – PORT OF MAPUTO PORT POTENTIAL 26 MILLION TONS 2007 – Total 6,70mt transit 2.833mt 2007 – Road traffic in/out of Port = 2.25M Tonne 2007 – Rail traffic in/out of Port = 1.7M Tonne 2007 – SA Exports = 59% of all Port Exports 2007 – SA Transit = 77% of all Port Transit Cargo

  7. MIPS Container Terminal Throughputs in TEUS – 1996 - 2007 29% Increase over 2006 – 56% Increase in Transit Exports 103% Increase Since MCLI Inception – 2003 806% Increase since MIPS Concession - 1996

  8. FPT Maputo RedevelopmentNeeds Volume Commitment

  9. Is a Fruit Export Terminal required in Maputo by the Southern African Fruit Industry?

  10. Location

  11. Historical Issues • Maputo is much closer to the source areas and will obviously result in lower transport cost. Why was Durban chosen as historical site for investment in logistic facilities? • Political Issues (War, etc.) • Bad condition of road to Maputo • Border issues • Shipping opportunities • Access and draft limitations in Maputo Port • Lack of cold stores in Maputo • No sterilization facilities in Maputo • Long rail journey due to delays on Mozambique side • No market for rejected fruit

  12. Competitiveness Controlable Influence (distance, etc) Uncontrolable Logistics Cost Distribution Production area Land Transp Terminal Sea Transp

  13. Highly Competitive Current Market Future Markets Production area

  14. Benefits of Using Maputo Port • Shorter landside transit time • Landside and freight cost benefits • No congestion (unlike Durban) and subsequent transport delays • One stop cold storage and terminal handling service – FPT (do not have to deal with multiple service providers) • Handling services for container and specialized reefer cargo • Full stock visibility • Simplified planning processes for exporter • Quality benefits of cold chain integrity

  15. Terminal Volume Throughput

  16. Volume by Market

  17. Production Areas

  18. Hinterland Production Volumes Cartons - millions 5,5% per annum 2005 - 2010 Source - CGA

  19. New Plantings

  20. Distances to Maputo North Prov: 600Km Mpum: 200Km Swazi: 150Km Distances to Durban North Prov:1000Km Mpum: 600Km Swazi: 350Km Maputo is definitely a more competitive option as far as road/rail transport

  21. Logistical Cost Competitiveness

  22. Centre of Gravity Analysis

  23. Volumes assumptions 2008

  24. Lease agreement • FPT operates fruit terminal facilities on premises belonging to the Port Authority – Maputo Port Development Company (MPDC). • FPT is required to construct facilities and increase volumes handled through Maputo inline with the expectations of MPDC. • New lease agreement to be long term due to investment requirements. • FPT will be allowed to handle all perishable cargo. • FPT to provide a minimum throughput guarantee.

  25. Current Intake Area

  26. Building G4

  27. Project scope Convert G5 building to cold store capable to handle sterilization cargo. Upgrade cold room configuration in building G3 and G4. Add container loading bays to building G3. Upgrade plant: Replace compressors, add seawater condensers, coolers, NH3-tanks Upgrade electrical works, switchgear, etc. Build new forklift battery charging and technical workshop

  28. Proposed layout Phase 1

  29. Future phases

  30. Competitiveness Controlable Influence (distance, etc) Uncontrolable Logistics Cost Distribution Production area Land Transp Terminal Sea Transp

  31. Stakeholder Commitment • For this investment to be feasible volumes through the terminal need to increase substantially over present volumes, this can only be possible if you the exporter and shipping line give your commitment to exporting fruit through Maputo. • We are fully aware of the many unknowns but we trust that today’s workshop addressed all those. • FPT requires an intent from you as to the volumes per market you will commit on a continuous basis to Maputo in future. • FPT will ensure that the following are in place at all times: • Terminal remains competitive • Service levels maintained and improved • Enough space allocated to handle your fruit • Ability to handle all shipping modes (Container / Specialized Reefer)

  32. www.mcli.co.zabrenda.horne@mcli.co.zaTel +27828022338 THANK YOU ACKNOWLEDGEMENTS:; MPDC; MIPS; FPT

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