August Dynamar B.V. Noorderkade 1G 1823 CJ Alkmaar Tel: Fax: Website:

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1 East Africa & Southern Africa Container Trades Noorderkade 1G 1823 CJ Alkmaar Tel: Fax: Website:

2 2 East Africa & Southern Africa Container Trades

3 The Dynamar Container Trades Reports series 3 East Africa and Southern Africa Container Trades with Europe, Asia and the Americas includes Seychelles and Indian Ocean Islands, as well as the Middle East, Indian Sub Continent and other Africa with monthly updates attached covering to early February 2012 Noorderkade 1g 1823 CJ ALKMAAR Phone: Fax: info@dynamar.com Researcher, Analyst, Author Darron Wadey MILT Managing Editor Dirk Visser All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without explicit permission of the publisher. While the information contained in this report is presented in good faith, it frequently involves estimates where no current published data is available. This information, believed to be accurate, can therefore not be guaranteed. The publishers cannot accept liability of any errors or omission.

4 4 East Africa & Southern Africa Container Trades Contents Contents... 4 The Dynamar Container Trades Reports series EXECUTIVE SUMMARY East Africa, Southern Africa and Indian Ocean Islands liner trades structure Key facts and figures, individual ESAf trades Trading context Ports covered in this study CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS Summary Far East Southern and East Africa, Indian Ocean Islands Trade overview Container liner services Middle East/Indian Subcontinent Southern and East Africa, Indian Ocean Islands Trade overview Container liner services North Europe and Mediterranean Southern and East Africa, Indian Ocean Islands Trade overview EACS (East Africa Container Service) CAPRICORNE/IOAL SAECS (Southern Africa Europe Container Service) Container liner services West Africa East and Southern Africa Trade overview Container liner services North America East and Southern Africa Trade overview Container liner services South America East and Southern Africa Trade overview Container liner services Intra-Africa regional services and operators Piracy Background The military response The industry response best practice and self help... 60

5 The Dynamar Container Trades Reports series 5 CONTAINER LINER CARRIERS Summary Local, regional representation Trade related carrier profiles China Shipping China Shipping Container Lines Co. Ltd CMA CGM SA Coscon (COSCO Container Lines Co. Ltd.) CSAL Canada States Africa Line CSAV - Compañia Sud Americána de Vapores S.A DAL DAL Deutsche Afrika-Linien GmbH & Co KG Emirates Emirates Shipping Line DMCEST Evergreen - Evergreen Line / Evergreen Marine Corporation Ltd Hamburg Süd Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG Hapag-Lloyd Aktiengesellschaft K Line - Kawasaki Kisen Kaisha, Ltd MACS Maritime Carrier Shipping Gmbh & Co KG Maersk A.P. Møller - Mærsk A/S Messina Ignazio Messina & C. SpA MOL - Mitsui OSK Lines, Ltd MSC MSC Mediterranean Shipping Company S.A NileDutch - Nile Dutch Africa Line B.V NYK - Nippon Yusen Kabushiki Kaisha, NYK Line PIL Pacific International Lines Pte Ltd Wan Hai - Wan Hai Lines Limited X-Press X-Press Feeders Ltd ZIM ZIM Integrated Shipping Services Ltd TRADE VOLUMES, CARRYINGS and THROUGHPUTS Introduction and Overview Notes for the East and Southern Africa, Indian Ocean Islands trades Trade volumes, main ESAf trades Summary of historic and forecast trade volumes (TEU) by main route Far East-ESAf detailed trade statistics Europe-ESAf detailed trade statistics United States-ESAf detailed trade statistics South Americe (Brazil)-ESAf detailed trade statistics East Africa-Southern Africa volumes relationship Reefer cargo container volumes... 82

6 6 East Africa & Southern Africa Container Trades Throughputs, ESAf port handled containers Capacity Utilisation EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL Summary Southern Africa Ports called and developments Overview Namibia Walvis Bay Lüderitz, Namibia South Africa Cape Town Ngqura (Coega) Port Elizabeth East London Durban Richards Bay Mozambique Maputo Beira Nacala East Africa Overview Mombasa, Kenya Lamu, Kenya Dar Es Salaam, Tanzania Tanga, Tanzania Zanzibar, Tanzania Indian Ocean Ports Victoria (Mahe), Seychelles Mutsamudu, Comoros Longoni, Mayotte Toamasina (Tamatave), Madagascar Ehoala, Madagascar Port Reunion (Reunion) Port Louis, Mauritius Global Terminal Operators active in ESAf APM Terminals

7 The Dynamar Container Trades Reports series 7 DP World Hutchison Port Holdings International Container Terminal Services Inc Bolloré Africa Logistics General Logistics corridors BACKGROUND ECONOMY, TRADES AND COMMODITIES Commodities, cargoes and flows East Africa and Indian Ocean Commodities, cargoes and flows Southern Africa General economic and trading indicators Regional Economic and Customs Communities Country profiles Littoral Countries, Continental Africa Kenya Mozambique Namibia South Africa Tanzania Country profiles Indian Ocean Island Countries and Territories Comoros Madagascar Mauritius Seychelles French Overseas Territories Country profiles Landlocked Countries, Continental Africa Botswana Burundi Lesotho Malawi Rwanda Swaziland Uganda Zambia Zimbabwe STOP PRESS Post Publication Developments Services Trade Capacity

8 8 East Africa & Southern Africa Container Trades Ports and Terminals Transport Corridors (inland) Commodities and Cargoes September Services Trade Capacity Ports and Terminals Transport Corridors (inland) October Services Trade Capacity Ports and Terminals Transport Corridors (inland) Commodities Countries November Services Trade Capacity Ports and Terminals Transport Corridors (inland) Commodities December Services Trade Capacity Ports and Terminals Transport Corridors (inland) Shippers and forwarders Commodities Countries January Services Trade Capacity Ports and Terminals Transport Corridors (inland) Commodities Countries APPENDICES

9 The Dynamar Container Trades Reports series 9 I Service Grids II South Africa Merchandise trade, by value, Sources List of Tables Table 1: Universal table of services Table 2: Far East-ESAf table of services Table 3: Far East-ESAf list of vessel operating carriers Table 4: ESAf ports called on Far East services Table 5: ME/ISC-ESAf table of services Table 6: ESAf-ME/ISC trade list of vessel operating carriers Table 7: ESAf ports called on ME/ISC services Table 8: North Europe/Mediterranean table of services Table 9: North Europe/Mediterranean-ESAf list of vessel operating carriers Table 10: ESAf ports called on North Europe/Mediterranean services Table 11: West Africa-ESAf table of services Table 12: West Africa-ESAf list of vessel operating carriers Table 13: ESAf ports called on West Africa services Table 14: North America-ESAf Table 15: North America-ESAf list of vessel operating carriers Table 16: ESAf ports called on North America services Table 17: ECSA-ESAf table of services Table 18: ECSA-ESAf list of vessel operating carriers Table 19: ESAF ports called on Latin America services Table 20: Summary of main intra-eaf/saf container liner services Table 21: Service grid summary of intra-esaf liner services Table 22: Summary of all vessel operating carriers, ESAf trades Table 23: Commodity based container volumes, East & Southern Africa-Far East, Table 24: Commodity based container volumes, East & Southern Africa-Europe, Table 25: Volumes between United States and ESAf, Table 26: Volumes between Brazil and ESAf, Table 27: Commodity based container volumes with Far East, separated by import/export, East/Southern Africa, Table 28: Commodity based container volumes with Europe, separated by import/export, East/Southern Africa, Table 29: Volumes as reported between Europe and sub-saharan Africa, Table 30: Volumes between United States and ESAf countries, by import and export, Table 31: Volumes between United States and ESAf sub-regions, Table 32: Volumes between Brazil and ESAf countries, Table 33: Volumes separated by East/Southern Africa, by main trades and direction, Table 34: South Africa Reefer Cargo exports by destination, Table 35: ESAf port throughputs, Table 36: All ESAf ports called by deepsea liner services Table 37: Summary details of main trade and transit corridors in ESAf Table 38: Exports of Tea from Kenya Table 39: Exports of Coffee from ESAf countries Table 40: Exports of Citrus Fruit from South Africa Table 41: Income bracket of ESAf countries as per IMF, April

10 10 East Africa & Southern Africa Container Trades Table 42: African Regional Economic Communities Membership Table 43: Kenya - Economy development, Table 44: Kenya - Merchandise trade statistics, Table 45: Mozambique - Economy development, Table 46: Mozambique - Merchandise trade statistics, Table 47: Namibia - Economy development, Table 48: Namibia - Merchandise trade statistics, Table 49: South Africa - Economy development, Table 50: South Africa - Merchandise trade statistics, Table 51: Tanzania - Economy development, Table 52: Tanzania - Merchandise trade statistics, Table 53: Comoros - Economy development, Table 54: Comoros - Merchandise trade statistics, Table 55: Madagascar - Economy development, Table 56: Madagascar - Merchandise trade statistics, Table 57: Mauritius - Economy development, Table 58: Mauritius - Merchandise trade statistics, Table 59: Seychelles - Economy development, Table 60: Seychelles - Merchandise trade statistics, Table 61: Botswana - Economy development, Table 62: Botswana - Merchandise trade statistics, Table 63: Burundi - Economy development, Table 64: Burundi - Merchandise trade statistics, Table 65: Lesotho - Economy development, Table 66: Lesotho - Merchandise trade statistics, Table 67: Malawi - Economy development, Table 68: Malawi Merchandise trade statistics, Table 69: Rwanda - Economy development, Table 70: Rwanda - Merchandise trade statistics, Table 71: Swaziland - Economy development, Table 72: Swaziland - Merchandise trade statistics, Table 73: Uganda - Economy development, Table 74: Uganda - Merchandise trade statistics, Table 75: Zambia - Economy development, Table 76: Zambia - Merchandise trade statistics, Table 77: Zimbabwe - Economy development, Table 78: Zimbabwe - Merchandise trade statistics,

11 The Dynamar Container Trades Reports series 11 List of Charts Chart 1: Shares of annualised trade capacity Chart 2: ESAf subset grouping, share of regional GDP Chart 3: Individual ESAf countries, historical and forecast GDP, List of Photographs Photograph 1: Converted Container Ship Bunga Mas Six List of Service Grids Service Grid 1: Far East-ESAf trade Service Grid 2: Far East-ESAf-South America trade Service Grid 3: Far East-Middle East/Indian Subcontinent-ESAf trade Service Grid 4: Far East-ESAf-West Africa trade Service Grid 5: Far East-Middle East/Indian Subcontinent-ESAf-West Africa trade Service Grid 6: Middle East/Indian Subcontinent-ESAf trade Service Grid 7: Middle East-ESAf-West Africa trade Service Grid 8: Europe/Mediterranean-ESAf trade Service Grid 9: Europe/Mediterranean-West Africa-ESAf trade Service Grid 10: Europe/Mediterranean-Middle East/Indian Subcontinent-ESAf trade Service Grid 11: North America-ESAf trade

12 12 East Africa & Southern Africa Container Trades The Dynamar Container Trades Reports series Since 2004 Dynamar has been publishing reports on specific container liner trades. In essence, these consultancy studies portray a trade from the viewpoint of a carrier that may consider entering the trade lane under review or if not, already serves the route and needs to keep track of the latest developments. This explains the basis of these studies that in particular aim at providing: - An assessment of the size of the trade (throughputs, volume, trade container carrying capacity) - An in-depth competition inventory (services, ships, capacity analyses) The Dynamar Container Trades Reports come in two different formats: 1) Comprehensive, detailed single shipping-lane studies between two defined trade areas 2) Key data-focused multi trade lane studies to and from one specific area Both types of reports cover the above defined general objectives; the difference may be in the number of subjects and/or the detail with which they are discussed. It is the latter, multi-trade lane, format that has been used for this particular publication on the East Africa, Southerm Africa and Indian Ocean Islands (ESAf) trades. In that regard it covers the six main intercontinental trade routes that directly connect ESAf with much of the rest of the world. Included in this six is, more accurately, an intra-continental aspect looking at links elsewhere within the greater African Continent. Further, reference is also made to the coastal/domestic ESAf trades. In line with previous reports, this publication covers the following key areas: o o o o o o o o o An introduction to the trade (structure, key figures, trading context and ports covered) Details of all individual liner shipping services carrying containers, sorted by trade and their annualised trade volume (container carryings) Capacity analysis by individual trade lane, by service, vessel operating carrier and ECSA ports called Brief trade-related profiles of the various vessel deploying carriers operating on all trade lanes Similar profiles and/or summaries of developments of the various ECSA ports called Container trade statistics per major trade lane, both carrier volume and port throughput based Main moving commodities to/from ECSA and general merchandise trade overview General economy developments and individual ECSA country profiles Appendices with service grids, giving an at-a-glance overview of all shipping services per trade as well as specific volumes along certain trade routes all supported by over eighty (80) tables or charts. This wide range of factors and subjects make these reports also of particular interest to other stakeholders in the trade areas, including (alphabetically): consultants, container leasing companies, financiers, forwarders, NVOCCs, port authorities, port developers, shippers, terminal operators, training institutes and others. We trust that you find the following pages of use and interest and as always, welcome any comments or feedback you may have. Dirk Visser, Managing Editor Darron Wadey MILT, Analyst

13 EXECUTIVE SUMMARY 13 EXECUTIVE SUMMARY East Africa, Southern Africa and Indian Ocean Islands liner trades structure As of July 2011, there were twenty-two (22) separate vessel providing container liner carriers active on the trades to and from the composite East Africa, Southern Africa and Indian Ocean Island region, or ESAf by way of abbreviation. As defined here, the component parts of ESAf are: Southern Botswana*, Lesotho*, Africa: Madagascar, Namibia, South Africa, Swaziland*, Zimbabwe* East Africa: Burundi*, Kenya, Malawi*, Rwanda*, Tanzania, Uganda*, Zambia* Ind. Ocean: Comoros, Madagascar, Mauritius, Mayotte, Reunion, Seychelles. An alternative separation is between those countries that are landlocked, these being asterisked*; littoral, as in along the coast; or Island nations. All told, these 22 carriers provided three hundred and fifty-eight ships (358). The combined carrying capacity of these ships was 998,000 containers, measured as twenty foot equivalent units, TEU, at an average therefore of 2,800 TEU. This fleet was deployed on some fifty-seven (57) container liner carrying services offered either as standalone or joint operations. As not every single operation operated on a weekly basis, all told these 36 services provided close to forty-eight (48) weekly intercontinental links to and from the ESAf region. Chart 1: Shares of annualised trade capacity by region; by port; by carrier These services called at twenty (20) different ports dotted along the African seaboard or in Indian Ocean for close to one hundred and twenty-eighty (128) port calls each week. From these port calls and the liner services, a total of over one hundred and fifty-five (155) weekly trade connections were provided between ESAf and either the Far East, Middle East/Indian Subcontinent, North Europe/Mediterranean, West Africa, North America or South America.

14 14 East Africa & Southern Africa Container Trades Finally, the combination of operators, services, frequency, and capacity deployed and trade connections provided an equivalent annual, one-way, trade capacity of 3,743,000 TEU flowing in to or out of ESAf. Equivalent here is assuming all services remain unchanged. To that total, another 300,000 TEU per year or so could be added for pure intra-esaf connections. All told, the main container handling ports in ESAf saw an estimated 6.2mn TEU in container movements, including empty and transhipments, in At an approximate level therefore, around 85% of all available container slots, based upon an adjusted two-way trade capacity, may well have been occupied by a container that was moving in whatever capacity as part of the logistics process.

15 EXECUTIVE SUMMARY 15 Key facts and figures, individual ESAf trades Far East Total number of vessel operators: 18 Total number of services: 28 Total estimated annualised one-way trade capacity: 1,661,000 TEU Total vessels deployed and average shipboard capacity: 3,100 TEU Largest carrier by trade capacity: Maersk (29% share) Total number ESAf ports called: 15 Largest port by allocated trade capacity: Durban (25%) Commodity trade based volumes westbound to ESAf: 1,522,000 Commodity trade based volumes eastbound from ESAf: 268,000 Middle East/Indian Subcontinent Total number of vessel operators: 9 Total number of services: 16 Total estimated annualised one-way trade capacity: 961,000 TEU Total vessels deployed and average shipboard capacity: 2,1 TEU Largest carrier by trade capacity: Maersk (35%) Total number ESAf ports called: 15 Largest port by allocated trade capacity: Durban (25%) North Europe/Mediterranean Total number of vessel operators: 6 Total number of services: 8 Total estimated annualised one-way trade capacity: 724,000 TEU Total vessels deployed and average shipboard capacity: 3,000 TEU Largest carrier by trade capacity: MSC (41%) Total number ESAf ports called: 12 Largest port by allocated trade capacity: Cape Town (31%) Commodity trade based volumes southbound to ESAf: 469,000 Commodity trade based volumes northbound fm ESAf: 498,000 West Africa Total number of vessel operators: 12 Total number of services: 19 Total estimated annualised one-way trade capacity: 219,000 TEU Total vessels deployed and average shipboard capacity: 2,100 TEU Largest carrier by trade capacity: Maersk (33%) Total number ESAf ports called: 5 Largest port by allocated trade capacity: Walvis Bay (42%) North America Total number of vessel operators: 4 Total number of services: 3 Total estimated annualised one-way trade capacity: 116,000 TEU Total vessels deployed and average shipboard capacity: 1,700 TEU Largest carrier by total shipboard capacity: MSC (54%) Total number ESAf ports called: 6 Largest port by allocated trade capacity: Durban (31%) Trade volumes southbound to ESAf: Trade volumes northbound from ESAf: 61,000 (est) 63,000 (est)

16 16 East Africa & Southern Africa Container Trades South America [East Coast only] Total number of vessel operators: 6 Total number of services: 4 Total estimated annualised one-way trade capacity: 62,000 TEU Total vessels deployed and average shipboard capacity: 4,800 TEU Largest carrier by trade capacity: MOL (24%) Total number ESAf ports called: 4 Largest port by allocated trade capacity: Durban (47%) Trade volumes westbound to ESAf (Brazil only): 56,000 Trade volumes eastbound from ESAf (Brazil only): 12,000

17 EXECUTIVE SUMMARY 17 Trading context The twenty countries or territories that comprise the ESAf region have similar histories in that virtually all including the Indian Ocean Islands were former colonies, protectorates, dominions or similar of European countries. With the exception of South Africa, all gained their independence over the 1960s and 1970s. And then, for the most part, many then experienced extended periods of government, not necessarily democratic, under the aegis of either a single person or a single party. However, nearly all have turned to multi-party democratic governance although that has not necessarily been a panacea to cure even electoral ills let alone all. In fact, it seems that nearly all of the last elections were disputed to varying degrees. Through all this, there are a few exceptions to the generalities made: Swaziland is actually an absolute monarchy (direct rule by the King); Mayotte and Reunion are actually Overseas Territories of France and Madagascar is in the midst of something of a constitutional if not electoral hiatus. By and large, the region under study is considered low income. Only the Southern Africa countries of Botswana, Namibia, South Africa and Swaziland plus the Indian Ocean Island of Mauritius are considered middle income. Throughout, in terms of container trade capacity, throughput, trade, economy, it is actually South Africa that dominates usually accounting for anywhere between 60% and 80% of the regional whole. Whilst the ESAf region does indeed include a number of small islands, for one country to be such a centre of gravity for twenty is fairly impressive but also reflects upon the relative states of those other nineteen. Many of the countries covered have an under-developed infrastructure amongst a myriad of other challenges. In fact, developing such could be considered a luxury when considering the misery being felt to the north of the ESAf region with the famine in the Horn of Africa (which in turn is impacting Kenya which has housed many a refugee from that country for around and up to twenty-years in some cases). However it is Kenya that could be considered exemplary of the regional ambition with its Vision 2030 programme of major infrastructural development, of which ports are but a portion. The state of inland transport infrastructure and ports is an issue facing most, especially the Continental Africa coastal countries. Even South Africa, the most developed of all within ESAf, has port capacity and productivity issues, the opening of a new port close to Port Elizabeth, Ngqura, notwithstanding. Common throughout are the comments regarding direct state involvement in the ownership of ports and/or terminal concerns. Indeed, the lack of private container terminal operators in the region is startling, especially when compared with West Africa say. The condition of landside infrastructure in theory the region may possess many kilometres of roads but only a small portion is tarmaced or similar; railways lack rolling stock, dual lines or spares also causes problems and are serious issues for those nine (9) landlocked countries upon whom good inland infrastructure and connections with ports are vital. Whilst accounting for 35% of the ESAf population it only provides around 14% of the combined ESAf region s 2010 GDPs. In absolute terms these still equate to some 103mn people and USD 73bn respectively. The latter could undoubtedly be much more. Domestic political stability, which if not actually there yet, universally, is getting there is but a first but important and necessary step and from which other things can flow. To a degree, some forms of standardisation and co-operation would go a long way. As a microcosm of the situation, different railway lines in different countries have different track gauges (although this is not such a problem between Russia and Western Europe where infrastructure is developed, here in Africa it can imaginably so). On a more ethereal plain, it is perhaps remarkable that ESAf is represented by at least four Africa based regional customs and/ or economic unions with many countries belonging to more than one. There are moves though to harmonise some approaches, and this will undoubtedly help.

18 18 East Africa & Southern Africa Container Trades The region as a whole has a wide and varied base of own products ranging from the relatively natural resource rich Southern Africa countries to the commodity growing East Africa countries and their tea, coffee and cashews, amongst others. Offshore Mauritius has managed to turn itself into, well, an offshore centre of sorts and can be argued to be the post-independence success story of the region. Clearly there is potential and shipping lines are ever anxious to look at alternative markets to help boost their own productivity from out of the doldrums being seen on their mature, and hitherto main, trades. It is here then that a clear distinction is seen with other main container liner trades. The old trading relationship with Europe has now been replaced with one with the East. The geographical Indian Ocean inclination of the African Continent and the offshore islands lend themselves to such a relationship. No coincidence that also to the East lie two of the fastest growing economies and developing countries on the planet in India and China. And within ESAf, is one of the others, South Africa, now considered part of the BRICS together with Russia and Brazil to complete the quintet. Once the politics has been sorted; once the corridors to and from the ports have been smoothed; once the ports have been developed perhaps others in the region will be able to aspire to be one of the next big things. However, this will take time but what undoubtedly is important to the liner operator and logistics practitioner is still to be present and be patient. After all, not so very long ago, MSC started life as a liner company visiting this region.

19 EXECUTIVE SUMMARY 19 Ports covered in this study All direct ports of call by trade region have been listed below in alphabetical order by country left to right with ports underneath each country also in alphabetical order: East Africa (4 ports) Southern Africa (10 ports) Kenya Tanzania Mozambique Namibia South Africa Mombasa Dar Es Salaam Beira Walvis Bay Cape Town Tanga Maputo Durban Zanzibar Nacala East London Ngqura Port Elizabeth Richards Bay Indian Ocean Islands (6 ports) Comoros Madagascar Mauritius Reunion, Seychelles Mayotte Mutsamudu Toamasina Port Louis Port Reunion Port Victoria Longoni Far East (28 ports) China Hong Kong South Korea Malaysia Philippines Singapore Taiwan Dachan Bay Hong Kong Busan Pasir Gudang Davao Singapore Kaohsiung Dalian Inchon Port Kelang Manila Keelung Fang Cheng Kwangyang PT Pelepas Taichung Fuzhou Guangzhou Huangpu Nansha Ningbo Qingdao Shanghai Shantou Shenzhen Chiwan Shekou Yantian Xiamen Xingang Middle East/Indian Subcontinent (13 ports) UAE India Iran Sri Lanka Maldives Oman Pakistan Dubai (Jebel Ali) Cochin Bandar Shahid Colombo Male Salalah Karachi Khor Fakkan Mundra Port Qasim Sharjah Nhava Sheva Saudi Arabia Jeddah

20 20 East Africa & Southern Africa Container Trades North Europe/Mediterranean (20 ports) Belgium Germany Spain France Italy Morocco Netherlands Antwerp Bremerhaven Algeciras Le Havre Genoa Tangier Rotterdam Hamburg Barcelona Marseille La Spezia Las Palmas Montoir Naples Valencia Vigo Portugal Lisbon Leixoes UK Felixstowe Tilbury West Africa (17 ports) Angola Benin Congo, Dem Rep Congo, Rep Ivory Coast Cameroon Gabon Lobito Cotonou Boma Pointe Noire Abidjan Douala Libreville Luanda Matadi Namibe Sonils Ghana Nigeria Senegal Togo Takoradi Lagos Dakar Lome Tema Apapa Tin Can Island South America (East Coast, 10 ports) North America (10 ports) Argentina Brazil Uruguay Bahamas Canada US Buenos Aires Santos Montevideo Freeport Montreal Baltimore Paranagua Charleston Sao Francisco do Sul Houston Rio de Janeiro Jacksonville Rio Grande New Orleans Itajai New York Suape Norfolk Sepetiba Savannah

21 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 21 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS Summary In total, as of July 2011 there were fifty-seven (57) intercontinental or inter-regional container liner services calling the composite East Africa, Southern Africa and Indian Ocean Islands, region, abbreviated throughout as ESAf. These service loops connected directly with one or more of: the Far East (FE), Middle East and/ or Indian Sub Continent (ME/ISC), North Europe and/ or Mediterranean (NEur/Med), West Africa (WAf), East Coast of South America (ECSA) and North America (NAm). Not all services were operated on a weekly basis so that in fact, when averaged out, all told there were approaching forty-eight (48) weekly calls. These 57 services and their 48 weekly rotations combined to provide an annual, one-way, trade capacity of 3.7 million TEU. This figure is a function of frequency, vessel nominal capacity as adjusted for cargo and core ports called. It is a generic one-way 1 figure. As Southern Africa and the Indian Ocean Islands are regular wayport calls in that services dip in and out of ports in these sub-regions whilst en route between trade ends, the region under study offers a fairly large number of differing connections. In terms of numbers of services, those offering connections between the ESAf region and Far East are most popular, twenty-five (25) in total although only ten (10) of those are pure ESAf-Far East end-to-end links. The others carry on to or from West Africa (10), ECSA (4) or the Middle East/Indian Subcontinent (1). This last named region, and unsurprising as a neighbour, provides twelve (12) dedicated end-to-end links plus another three in which it is one of more regions called over the stretch of the entire rotation. North Europe/Mediterranean and West Africa, separately, both accommodate six (6) dedicated services each although at eleven (11) in total WAf has many more shared services than NEur/Med s two (2). Finally, all four (4) services between ESAf and East Coast South America are via wayport calls only, these services actually running between ECSA and the Far East whilst all three (3) services that provide connections to/from North America are trade dedicated. Table 1: Universal table of services Far East FE + ECSA Service Carriers Vessels Average Weekly Total vessel cap Rotations Trade Cap Safari 1 Maersk 8 6, ,000 Cheetah MSC 7 6, ,000 ASA "K" Line, PIL 7 4, ,000 FAX Evergreen, Coscon 8 3, ,000 Mashariki Express Maersk Line, Safmarine 7 2, ,000 EAS - E. Africa Service PIL 9 2, ,000 MZX MOL 5 2, ,000 AEF / EAX Wan Hai, Evergreen, MOL, X-Press 6 2, ,000 Safari 2/ Safari 3 Maersk Line, Safmarine 5 2, ,000 EA 2 - E. Africa Service 2 PIL 7 2, ,000 MOZEX CMA CGM 5 2, ,000 IOM - Ind. Ocean Mozambique PIL 3 1, ,000 NGX 2 / ASAS 2 Hamburg Süd, Maersk Line 11 4, ,000 CSW MOL 13 5, ,000 SEAS 1 / ASAX 1 China Shipping, CMA CGM, CSAV 11 6, ,000 1 Around 3.4% of this total includes 70,000 TEU in trade capacity that moves to our composite ESAf region only plus another 57,000 TEU moving away only. As an example the Maersk/Safmarine SafMed between North Europe/Mediterranean and Southern Africa calls at Dakar in the northbound direction only, away from Southern Africa, thus a small amount of purely northbound Southern-West Africa capacity is allocated to that service.

22 22 East Africa & Southern Africa Container Trades West Africa 5 4 NEur/Med NAm 3 Middle East/Indian Subcontinent 2 Far East + West Africa 1 SEAS 2 / ASAX 2 China Shipping, CMA CGM, CSAV 10 4, ,000 ASEA CMA CGM 6 2, ,000 AFA Emirates 3 2, ,000 FEW 2 / FW 2 Maersk 10 3, ,000 New Discovery CSAV 9 3, ,000 Far East-Africa NileDutch 6 3, ,000 WSX / WAFCO China Shipping, "K" Line, Hapag-Lloyd 7 3, ,000 SW2 PIL 10 2, ,000 SWX - S. and W. Africa Exp NileDutch, NYK 6 3, ,000 WAX - W. Africa Exp. CMA CGM 11 3, ,000 ASAF-DAPDEL CMA CGM 10 2, ,000 SWS PIL 10 2, ,000 Gold Star Line FAX ZIM 8 2, ,000 India South-Africa service MSC 6 3, ,000 Marco Polo CSAV 6 3, ,000 Masiika Express Maersk Line, Safmarine 5 2, ,000 Middle East-East Africa relay MSC 5 2, ,000 MESA Maersk 6 2, ,000 Swahili Express CMA CGM 5 2, ,000 Mascareignes CMA CGM 4 2, ,000 Mombasa Express Maersk Line, Safmarine 2 2, ,000 Indian Ocean Service Maersk Line, Safmarine 4 1, ,000 GIA Emirates 3 2, ,000 Middle East Express DAL, UAFL 3 2, ,000 AMI / (Gold Star) IAS ZIM (Gold Star), PIL 6 1, ,000 America Express / AMEX Maersk, MSC 8 2, ,000 Galborg GAL MACS 6 1, ,000 Multipurpose service CSAL 3 1, ,000 Europe-South Africa service MSC 7 7, ,000 SAECS / SAX Maersk Line, Safmarine, MOL, DAL 7 5, ,000 Reefer Express / SRE Maersk Line, MOL, DAL 5 1, ,000 MACS service MACS 7 2, ,000 Europe-Australia service MSC 13 3, ,000 WAF 5 Loop 1 Maersk Line 7 1, ,000 SafMed Maersk Line, Safmarine 6 1, ,000 East and South Africa service Messina 4 2, ,000 South Africa-Angola service MSC 3 1, ,000 AOS MOL 2 1, ,000 Walvis B.-Luanda fdr Maersk Line, Safmarine 2 1, ,000 West Coast service s.2 Maersk Line, OACL, Safmarine 1 1, ,000 Delmas West Feeder CMA CGM 2 1, ,000 SafWaf Combo Maersk Line, Safmarine 2 1, , , ,743,000 Key to abbreviations: FE = Far East; ECSA = East Coast South America; ME/ISC = Middle East &/or Indian Subcontinent; WAf = West Africa; NAm = North America; NEur/Med = North Europe &/or Mediterranean Note 1 = FE + ME/ISC; 2 = FE + ME/ISC+WAf; Note 3 = ME/ISC + WAF; Note 4 = NEur/Med+Waf; Note 5 = NEur/Med + ME/ISC The Far East is also the largest individual trade in terms of annual trade capacity. Around 44% of all container shipping capacity departing or leaving the ESAf region is destined for/ originates from the Far East. In this regard it is out on its own, with the next largest region, Middle East/Indian Subcontinent, accounting for 26% of all trade capacity. In essence therefore, seven (7) out of every ten (10) container slots moving in to or out of the area under study will have an eastbound connection. A little surprisingly, only twelve (12) of the 57 services are operated as joint agreements although within the remaining forty-five (45) services, those jointly operated by group affiliates, essentially Maersk Line +

23 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 23 Safmarine and CMA CGM + Delmas, and no other party, are counted as standalone. There are around eleven (11) such arrangements. Three (3) of the 12 jointly operated services are on the Far East-(South Africa-)ECSA trade and two of these, the SEAS/ASAXs 1 & 2 are the result of a recent, mid-2011, coming together of CMA CGM plus China Shipping on the one hand and CSAV on the other. The net effect was actually an increase of one joint loop as CSAV was previously a standalone operator of one service; it is now a joint operator within two. With another 3 joint operations on the Far East-ESAf dedicated trade the others are somewhat scattered such as the Maersk/MSC America Express to/from North America. Whilst it is rare that the world s second largest container liner carrier by deployed capacity, MSC, engages in a joint arrangement on the North-South trades, it is not so unusual for Maersk, the largest container shipping grouping in the world. In fact it is present on another 3 co-operative agreements, one to/from/between Far East and ECSA, the other two (2) being between North Europe/Mediterranean and South[ern] Africa. On this latter trade it is a member of the SAECS Consortium, one of the oldest such in the world, and which provides those two links.

24 24 East Africa & Southern Africa Container Trades Far East Southern and East Africa, Indian Ocean Islands Trade overview As of July 2011, between the Far East and East and Southern Africa container liner services provided in excess is of 1.6 million TEU in terms of annualised trade capacity 2. There were, remarkably, twenty-eight (28) distinct container liner services operating along this trade. Half of these could be considered as trade dedicated. Four (4) are in fact purely South Africa (the country) connections although only two (2) of those go round to the South Atlantic side turning at Cape Town in the process. The remaining ten (10) of that half all call at the West Indian Ocean seaboard at one or more of Kenya, Tanzania, Mozambique or South Africa, as far south as Durban. Throughout, calls are made at the Indian Ocean islands en route to/ from the trade ends. Similarly, and as indicated by the fourteen (14) non-trade dedicated services, the region has significant coverage through wayport calls. This comes virtually exclusively from calls at South Africa on the way to or from the East Coast of South America (4 services) or West Africa (10). Table 2: Far East-ESAf table of services Weekly Average Total Service Carriers Rotations vessel cap Trade Cap Safari 1 Maersk 1.0 6, ,600 Cheetah MSC 1.0 5, ,500 ASA "K" Line, PIL 1.0 4, ,900 FAX Evergreen, Coscon 1.0 3, ,300 Safmarine: Mashariki Express Maersk 1.0 2,300 99,900 EAS - E. Africa Service PIL 1.2 1,800 92,600 MZX MOL 1.0 2,000 87,900 AEF / EAX Wan Hai, Evergreen, MOL, X-Press 1.0 2,000 86,900 Safari 2/ Safari 3 Maersk 1.0 1,700 77,200 EA 2 - E. Africa Service 2 PIL 1.0 1,700 76,200 ASEA CMA CGM 0.9 1,700 46,900 MOZEX CMA CGM 0.6 1,500 40,700 IOM - Ind. Ocean Mozambique PIL 0.7 1,300 39,800 AFA Emirates 0.5 1,800 33,400 NGX 2 / ASAS 2 Hamburg Süd, Maersk 1.0 4,400 26,600 FEW 2 / FW 2 Maersk 1.0 3,300 17,200 CSW MOL 1.0 4,800 15,000 New Discovery CSAV 1.0 2,700 13,000 SEAS 1 / ASAX 1 China Shipping, CMA CGM, CSAV 1.0 5,700 11,500 SEAS 2 / ASAX 2 China Shipping, CMA CGM, CSAV 1.0 4,300 8,600 Far East-Africa NileDutch 0.5 2,600 8,300 WSX / WAFCO China Shipping, "K" Line, Hapag-Lloyd 0.7 2,500 8,000 SW2 PIL 1.0 1,700 6,700 SWX - S. and W. Africa Exp NileDutch, NYK 0.5 2,600 6,600 WAX - W. Africa Exp. CMA CGM 0.9 3,300 6,300 ASAF-DAPDEL CMA CGM 0.8 1,900 4,600 SWS PIL 1.0 2,000 4,300 Gold Star Line FAX ZIM 0.6 2,300 3,200 Totals ,100 1,660,700 The largest single service in terms of trade capacity is the standalone Maersk group Safari 1 which is trade dedicated and calls, principally, at South Africa, including Cape Town. MSC s Cheetah is the next largest and is 2 Including around 41,000 TEU which is purely Eastbound capacity away from ESAf only and another 15,000 TEU which is Westbound to ESAf

25 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 25 similarly South Africa based. Combined the two account for approaching 32% of all trade specific capacity. Interestingly, both services are also the only dedicated ones along this particular lane employing ships of more than 5,500 TEU; one of the wayport/ecsa links, the SEAS 1/ASAX 1 has a vessel complement averaging 5,700 TEU. The 28 services are offered by eighteen (18) vessel operating carriers. The relatively low number comes from groupings or individual operators having more than one standalone operation. CMA CGM, for example, has four (4). Maersk, for its part, is present on 4 plus a single joint operation. Overall, only eight (8) of the representative services are joint operations, these involving at least two partners and in one case four: Evergreen, MOL, Wan Hai and X-Press Feeder group in the form of Sea Consortium. Their AEF/EAX is one of only three (3) trade dedicated joint services therefore eleven (11) are standalone out of a total of eight (8) co-operations. The presence of Sea Consortium, a pure and common feeder operator, is of interest on this particular service implying that it is carrying containers on behalf of other container liner operators [plural] whose own volumes do not justify even a slot allocation. This would appear to be a trade or route characteristic as the AEF/EAX replaced, effectively, an earlier, mid joint operation involving Evergreen, Wan Hai and Simatech, this last named another pure and common feeder operator. Table 3: Far East-ESAf list of vessel operating carriers Weekly Average Total Carrier Vessels Rotations vessel cap Trade Cap Maersk [incl. Safmarine] , ,500 PIL , ,500 MSC , ,500 "K" Line , ,200 MOL , ,600 CMA CGM [incl. Delmas] , ,900 Evergreen , ,400 Coscon ,400 56,900 Wan Hai ,300 33,500 Emirates ,800 33,400 CSAV ,100 23,200 X-Press (Sea Consortium) ,100 15,700 Hamburg Süd ,700 13,000 NileDutch ,600 11,500 China Shipping ,800 9,200 NYK ,700 3,400 Most operations, but not all, operate on a weekly frequency. A ZIM (Gold Star) Hapag-Lloyd ,300 2,500 3,200 1,100 fairly common theme amongst the Totals 218-3,100 1,660,700 ESAf trades is that the every 7-day sailing is not as universal as with other trades. Those operating purely between the Far East and ESAf may only need as five (5) ships to provide a weekly frequency, essentially Singapore or Port Tanjung Pelepas is the only Far East port of call such as on Maersk s Safari 2 / Safari 3. Others with a more extensive Far East rotation, as in PIL s EA 2, may require up to nine (9) vessels. (In fact, this service, on average, runs slightly quicker than every 7 days). With Southern Africa being called on the way to or from ECSA or West Africa, these services, being longer, need many more ships. For ECSA, MOL s CSW currently runs with thirteen (13) ships. To West Africa the vessel complement can be as high as eleven (11) as in the case of CMA CGM s WAX. As a result, the 18 carriers and their 28 services combined deploy two hundred and eighteen (218) vessels, an average of nearly eight per string. In total, they have a theoretical, or design, capacity of over 677,000 TEU. In terms of vessel numbers, PIL and CMA CGM group are the largest combining to provide 36% of vessel numbers. When looking at vessel nominal capacity, PIL is fourth largest with CMA CGM the second. Together with the largest, Maersk group, it accounts for over 34% of the total. Maersk and, this time, PIL then combine to provide a more than noteworthy 45% of the available Far East-ESAf trade capacity.

26 26 East Africa & Southern Africa Container Trades Table 4: ESAf ports called on Far East services Some fourteen (15) ESAf ports appear on these rotations ranging from Durban, the most popular being called around times per week through to Port Victoria in the Seychelles, once a fortnight. Geographically the port calls range from the same Port Victoria and also Mombasa, Kenya, in the North and East of our region all the way around to Walvis Bay, Namibia, to the south and west on the Southern Atlantic Ocean coastline and facing a long way away Rio de Janeiro. Weekly Average Total Port Rotations vessel cap Trade Cap Durban, ZA , ,400 Cape Town, ZA 4.5 3, ,300 Mombasa, KE 6.0 1, ,700 Port Louis, MU 4.0 3, ,800 Dar Es Salaam, TZ 5.0 1, ,200 Ngqura, ZA 2.0 4,900 99,200 Port Elizabeth, ZA 1.5 5,300 88,200 Maputo, MZ 4.0 1,600 69,300 Toamasina [Tamatave], MG 3.0 1,700 57,700 Nacala, MZ 2.0 1,600 42,100 Port Reunion, RE 1.5 1,800 37,800 Beira, MZ 2.0 1,400 24,900 Walvis Bay, NA 1.5 3,300 23,500 Tanga, TZ 1.5 1,700 18,900 Port Victoria (Mahe), SC 0.5 1,700 7,800 Totals ,100 1,660,700 On average, more than fifty-one (51) calls are made at these 15 ports in a week on services that connect with the Far East. As well as being the most popular port called, Durban also receives the largest trade capacity, followed at a fair distance by compatriot Cape Town. Combined they actually receive 40% of the total. Mombasa (11%) is the largest East Africa port in this regard; Port Louis, Mauritius (10-11%), the largest Indian Ocean Islands gateway. A developing theme over the past six/seven months has been the extension of existing Far East-Africa service loops further eastwards in terms of ports called: When 3 Service Carriers Serving Original FE Extension to May 2011 FEW 2 Maersk WAf Malaysia, Singapore China, South Korea Apr 2011 FAX ZIM (Gold Star) Waf Malaysia China Apr 2011 AFA Emirates EAf Malaysia, Singapore China (PRD 4 ) Dec 2010 Mashariki Maersk EAf Malaysia China (PRD) Even so, the most popular partner ports in the Far East were still Singapore and Port Tanjung Pelepas with very nearly 29% of trade capacity. Container liner services Notes: - Services have been sorted in descending order of trade capacity - Westbound (WB) = to Southern Africa, East Africa and Indian Ocean Islands - Eastbound (EB) = from to Southern Africa, East Africa and Indian Ocean Islands - Differences may occur due to rounding 3 Referring to reported date 4 Pearl River Delta

27 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 27 Maersk (Maersk Line + Safmarine) Safari 1 8 6,300 TEU average, providing Far East-ESAf trade capacity of 277,600 TEU Far East rotation: Port Tanjung Pelepas, Hong Kong, Shanghai, Ningbo, Shenzhen (Yantian), Port Tanjung Pelepas Way- or non-core port calls: WB: - EB: - ESAf rotation: Durban, Port Elizabeth, Cape Town Port Louis Far East Remarks: Trade dedicated service, South Africa + Indian Ocean Islands MSC Cheetah 7 5,600 TEU average, providing Far East-ESAf trade capacity of 249,500 TEU Far East rotation: Singapore, Fuzhou, Xiamen, Kaohsiung, Hong Kong, Shenzhen (Chiwan), Singapore Way- or non-core port calls: WB: - EB: - ESAf rotation: Port Louis Durban, Ngqura Port Louis Far East Remarks: Trade dedicated service, South Africa + Indian Ocean Islands. CMA CGM stared to take slots in April/May 2011 calling it Shaka service. See Post Publication Developments September 2011; trade capacity increased to 277,600 TEU by deploying larger vessels K Line, Pacific International Lines (PIL) ASA / Asia South Africa Service ASA 7 vessels (5/2)@ 4,000 TEU average, providing Far East-ESAf trade capacity of 176,900 TEU Far East rotation: Port Kelang, Singapore, Hong Kong, Shanghai, Ningbo, Keelung, Hong Kong, Shenzhen (Shekou), Singapore, Port Kelang Way- or non-core port calls: WB: - EB: - ESAf rotation: Durban, Cape Town Far East Remarks: Trade dedicated service, South Africa Evergreen Line, Coscon Far East/Africa Express FAX / Far East Africa Express FAX 7 vessels (3/5)@ 3,100 TEU average, providing Far East-ESAf trade capacity of 135,300 TEU Far East rotation: Singapore, Kaohsiung, Shanghai, Ningbo, Kaohsiung, Shenzhen (Yantian) 1, Hong Kong, Shezhen (Yantian) 1, Port Tanjung Pelepas 2 Singapore Way- or non-core port calls: WB: - EB: - ESAf rotation: Durban, Cape Town Far East Remarks: Trade dedicated service, South Africa 1 Alternates every other rotation between before/after Hong Kong 2 Called every third rotation only Maersk (Safmarine) Mashariki Express 7 2,300 TEU average, providing Far East-ESAf trade capacity of 99,900 TEU Far East rotation: Port Tanjung Pelepas, Guangzhou (Nansha), Shenzhen (Yantian), Port Tanjung Pelepas Way- or non-core port calls: WB: - EB: - ESAf rotation: Mombasa, Dar Es Salaam Port Louis Far East Remarks: Trade dedicated service, East Africa + Indian Ocean Islands Launched in Q1 2010; extended to China January 2011.

28 28 East Africa & Southern Africa Container Trades Pacific International Lines (PIL) East Africa Service EAS 9 1,800 TEU average, providing Far East-ESAf trade capacity of 92,600 TEU Far East rotation: Pasir Gudang, Singapore, Davao, Manila, Shanghai, Xingang, Dalian, Qingdao, Shanghai, Ningbo, Singapore Way- or non-core port calls: WB: - EB: - ESAf rotation: Port Reunion Mombasa Dar Es Salaam Far East Remarks: Trade dedicated service, East Africa + Indian Ocean Islands Average service frequency every six (6) days. This service the result of a split into two of what are now the IOM and EAS, this taking place in Q MOL MZX 5 2,000 TEU average, providing Far East-ESAf trade capacity of 87,900 TEU Far East rotation: Singapore Way- or non-core port calls: WB: - EB: - ESAf rotation: Port Louis Durban Maputo Toamasina Far East Remarks: Trade dedicated service, South Africa, East Africa + Indian Ocean Islands Evergreen to join as a slot partner in mid- which will lead to Port Tanjung Pelepas, Malaysia, call being added Evergreen, MOL, Wan Hai, X-Press Feeders (Sea Consortium) Asia-East Africa AEF / EAX / Asia East Africa AEF / AEF Asia East Africa 6 2,000 TEU average, providing Far East-ESAf trade capacity of 86,900 TEU Far East rotation: Singapore, Port Tanjung Pelepas, Port Kelang Way- or non-core port calls: WB: - EB: - ESAf rotation: Dar Es Salaam Mombasa Far East Remarks: Trade dedicated service, East Africa Launched April 2011 as replacement for existing Colombo-EAf service of Evergreen, Wan Hai and Simatech Maersk (Maersk Line + Safmarine) Safari 2 / Safari 3 5 1,700 TEU average, providing Far East-ESAf trade capacity of 77,200 TEU Far East rotation: Port Tanjung Pelepas Way- or non-core port calls: WB: - EB: - ESAf rotation: Port Louis Port Reunion Toamasina Maputo Far East Remarks: Trade dedicated service, Southern Africa, East Africa, Indian Ocean Islands. Pacific International Lines (PIL) East Africa Service 2 EA 2 7 1,700 TEU average, providing Far East-ESAf trade capacity of 76,200 TEU Far East rotation: Singapore, Fang Cheng, Hong Kong, Huangpu, Guangzhou (Nansha), Shenzhen (Shekou), Singapore Way- or non-core port calls: WB: - EB: - ESAf rotation: Port Louis Mombasa Nacala Far East Remarks: Trade dedicated service, Southern Africa, East Africa, Indian Ocean Islands Launched end Fang Cheng added in July 2011; Manila and Davaos moved to EAS at the same time CMA CGM (CMA CGM + Delmas) ASEA / ASEA Asia-East Africa Line 6 1,700 TEU average, providing Far East-ESAf trade capacity of 46,900 TEU Far East rotation: Port Kelang, Singapore Ind.Subcont Way- or non-core port calls: WB: Colombo, Male 1 Ind.Ocean EB: Colombo Far East ESAf rotation: Victoria 1 Mombasa Tanga 1, Dar Es Salaam Ind.Subcont Remarks: Trade dedicated service, East Africa + Indian Ocean Islands

29 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 29 1 Called once every two rotations only Service frequency around once every eight (8) days CMA CGM (CMA CGM + Delmas) MOZEX / MOZEX Asia-Mozambique Express Line 5 1,500 TEU average, providing Far East-ESAf trade capacity of 40,700 TEU Far East rotation: Port Kelang Way- or non-core port calls: WB: - EB: - ESAf rotation: Maputo, Nacala, Beira, Nacala Port Louis Far East Remarks: Trade dedicated service, East Africa + Indian Ocean Islands Service frequency around once every eleven-twelve (11-12) days. See Post Publication Developments October Pacific International Lines Indian Ocean Mozambique IOM 3 1,300 TEU average, providing Far East-ESAf trade capacity of 39,800 TEU Far East rotation: Pasir Gudang, Singapore Way- or non-core port calls: WB: - EB: - ESAf rotation: Toamasina Maputo, Beira Far East Remarks: Trade dedicated service, East Africa + Indian Ocean Islands Average service frequency around once every ten (10) days. This service the result of a split into two of what are now the IOM and EAS, this taking place in Q Emirates Shipping Line Africa Far East Asia AFA 3 1,800 TEU average, providing Far East-ESAf trade capacity of 33,400 TEU Far East rotation: Singapore, Hong Kong, Shenzhen (Shekou), Singapore, Port Kelang Ind.Subcont Way- or non-core port calls: WB: Colombo E.Af EB: - ESAf rotation: Mombasa Tanga, Dar Es Salaam Far East Remarks: Trade dedicated service, East Africa + Indian Ocean Islands Average service frequency around once every fifteen (15) days; extended to Shenzhen April See Post Publication Developments October Hamburg Süd, Maersk (Maersk Line) Asia-South Africa/South America East Coast New Good Hope Express 2 / ASAS ,400 TEU average, providing Far East-ESAf trade capacity of 26,600 TEU Far East rotation: Shanghai, Guangzhou (Nansha), Hong Kong, Singapore ESAf ESAf rotation: WB: Durban ECSA EB: Port Elizabeth, Durban F.East Way- or non-core port calls: Suape, Sepetiba, Itajai (Navegantes), Santos ESAf Remarks: Far East trade capacity via wayport calls along a Far East-East Coast South America (ECSA) service Service re-launched in July 2011 as a permanent fixture having initially been run between July-November 2010 as a supplementary peak season loop to the New Good Hope Express 1/ ASAS 1. South Africa wayport calls have been assigned to this second loop on both occasions after being removed from the NGHX 1 / ASAS 1 Maersk (Maersk Line + Safmarine) FEW 2 / FW ,300 TEU average, providing Far East-ESAf trade capacity of 17,200 TEU Far East rotation: Xiamen, Fuzhou, Busan, Shanghai, Ningbo, Guangzhou (Nansha), Port Tanjung Pelepas ESAf ESAf rotation: WB: Walvis Bay W.Af EB: Walvis Bay F.East Way- or non-core port calls: Lagos (Apapa), Tema, Abidjan ESAf Remarks: Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) service

30 30 East Africa & Southern Africa Container Trades MOL CSW 13 4,800 TEU average, providing Far East-ESAf trade capacity of 15,000 TEU Far East rotation: Singapore, Hong Kong, Xingang, Dalian, Qingdao, Busan, Shanghai, Hong Kong, Singapore ESAf ESAf rotation: WB: - EB: Cape Town, Ngqura F.East Way- or non-core port calls: Santos, Buenos Aires, Montevideo, Paranagua, Sao Francisco do Sul, Santos, Rio de Janeiro S.Af Remarks: Far East trade capacity eastbound only via wayport calls along a Far East-East Coast South America (ECSA) service. July 2011 saw the start of the phase in of ten (10) vessels of 5,600 TEU. Concurrently, the westbound wayport call to Ngqura was removed from the service. CSAV New Discovery 9 2,700 TEU average, providing Far East-ESAf trade capacity of 13,000 TEU Far East rotation: Port Kelang, Ningbo, Shanghai, Shenzhen (Chiwan), Hong Kong, Port Kelang S.Af ESAf rotation: WB: Durban W.Af EB: Durban F.East Way- or non-core port calls: Lagos, Cotonou, Tema, Abidjan S.Af Remarks: Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) link. Service launched June 2011 following the combination of two separate Far East-South Africa and South Africa-West Africa loops. See also Post Publication Developments China Shipping, CMA CGM, CSAV SEAS 1 / Asia South America East Coast SEAS / ASAX 1 11 vessels (3/2/6)@ 5,700 TEU average, providing Far East-ESAf trade capacity of 11,500 TEU Far East rotation: Port Kelang, Hong Kong, Busan, Shanghai, Ningbo, Shenzhen (Yantian), Hong Kong, Port Kelang ECSA ESAf rotation: WB: - EB: Durban F.East Way- or non-core port calls: Santos, Montevideo, Buenos Aires, Rio Grande, Paranagua, Santos S.Af Remarks: Far East trade capacity eastbound only via wayport calls along a Far East-East Coast South America (ECSA) operation. Service part of a general re-arrangement of two previously separate loops, SEAS [China Shipping + CMA CGM] and ASAX [CSAV] that was initiated in June China Shipping, CMA CGM, CSAV SEAS 2 / SEAS 2 / ASAX 2 10 vessels (2/4/4)@ 4,300 TEU average, providing Far East-ESAf trade capacity of 8,600 TEU Far East rotation: Singapore, Hong Kong, Shanghai, Ningbo, Xiamen, Kaohsiung, Hong Kong, Shenzhen (Shekou), Port Kelang ECSA ESAf rotation: WB: - EB: Ngqura F.East Way- or non-core port calls: Rio de Janeiro, Santos, Paranagua, Itajai, Santos, Rio de Janeiro S.Af Remarks: Far East trade capacity eastbound only via wayport calls along a Far East-East Coast South America (ECSA) service Service part of a general re-arrangement of two previously separate loops, SEAS [China Shipping + CMA CGM] and ASAX [CSAV] that was initiated in June NileDutch Far East-Africa 6 2,600 TEU average, providing Far East-ESAf trade capacity of 8,300 TEU Far East rotation: Xingang, Qingdao, Shanghai, Ningbo, Shenzhen (Shekou), Singapore S.Af ESAf rotation: WB: Durban, Cape Town W.Af EB: Durban F.East Way- or non-core port calls: Pointe Noire, Luanda S.Af

31 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 31 Remarks: Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) link. China Shipping, Hapag-Lloyd, K Line -/ WSX / WAFCO 7 (4/1/2) 2,500 TEU average, providing Far East-ESAf trade capacity of 8,000 TEU Far East rotation: Port Kelang, Shanghai, Ningbo, Xiamen, Shenzhen (Shekou), Port Kelang S.Af ESAf rotation: WB: Durban W.Af EB: Durban F.East Way- or non-core port calls: Tema, Lome 1, Cotonou 1, Lagos (Tin Can) S.Af Remarks: 1 Called on alternate rotations Service frequency every ten to eleven (10-11) days on average; K Line joined as a vessel provider mid-2010 Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) link. See also POST PUBLICATION Developments Pacific International Lines South West Africa Container Service 2 SW ,700 TEU average, providing Far East-ESAf trade capacity of 6,700 TEU Far East rotation: Singapore, Pasir Gudang, Hong Kong, Taichung, Fuzhou, Xiamen, Shantou, Hong Kong, Guangzhou (Nansha), Shenzhen (Shekou), Singapore S.Af ESAf rotation: WB: Durban W.Af EB: Durban F.East Way- or non-core port calls: Luanda, Lagos (Apapa), Libreville S.Af Remarks: Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) link. Service launched in Q NileDutch, NYK South West Africa Express SWAX / South and West Africa Express SWX 6 (3/3) 2,600 TEU average, providing Far East-ESAf trade capacity of 6,600 TEU Far East rotation: Singapore, Shanghai, Ningbo, Shenzhen (Shekou), Singapore S.Af ESAf rotation: WB: Durban W.Af EB: Durban F.East Way- or non-core port calls: Lome, Tema, Lagos (Apapa), Cotonou S.Af Remarks: Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) link Launched mid Service frequency averages fourteen to fifteen (14-15) days. See also POST PUBLICATION Developments: by end- service to be stopped with NYK joining an equivalent and existing joint service but not including NileDutch who will slots from NYK on the new link CMA CGM (CMA CGM) WAX West Africa Express 11 3,300 TEU average, providing Far East-ESAf trade capacity of 6,000 TEU Far East rotation: Port Kelang, Shanghai, Ningbo, Fuzhou, Shenzhen (Chiwan), Guangzhou (Nansha), Port Kelang S.Af ESAf rotation: WB: Walvis Bay W.Af EB: Way- or non-core port calls: Lagos (Apapa), Lagos (Tin Can), Lome, Abidjan Colombo F.East Remarks: Far East trade capacity westbound only via wayport calls along a Far East-West Africa (W.Af) link Service frequency averages seven to eight (7-8) days. Port Louis and Durban calls removed after CMA CGM started taking slots from MSC s Cheetah service in April/May 2011 CMA CGM (CMA CGM + Delmas) ASAF-DAPDEL / Asia West Africa line ASAF 10 1,900 TEU average, providing Far East-ESAf trade capacity of 4,600 TEU Far East rotation: Port Kelang, Ningbo, Shanghai, Shantou, Hong Kong, Shenzhen (Chiwan), Singapore, Port Kelang W.Af ESAf rotation: WB: - EB: Cape Town, Durban F.East Way- or non-core port calls: Pointe Noire, Luanda S.Africa

32 32 East Africa & Southern Africa Container Trades Remarks: Far East trade capacity eastbound only via wayport calls along a Far East-West Africa (W.Af) link Service frequency averages eight to nine (8-9) days. Pacific International Lines South West Africa Container Service SWS 10 2,000 TEU average, providing Far East-ESAf trade capacity of 4,300 TEU Far East rotation: Pasir Gudang, Singapore, Xingang, Inchon, Kwangyang, Ningbo, Singapore S.Af ESAf rotation: WB: Cape Town EB: Durban F.East Way- or non-core port calls: Tema, Cotonou, Lagos (Apapa), Douala S.Af Remarks: Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) link ZIM (Gold Star Line) FAX Far East Africa Express 8 2,300 TEU average, providing Far East-ESAf trade capacity of 3,200 TEU Far East rotation: Port Kelang, Shanghai, Ningbo, Dachan Bay ( Colombo, Sri Lanka) S.Af ESAf rotation: WB: Durban EB: - Way- or non-core port calls: Tema, Lagos (Tin Can), Takoradi, Abidjan Colombo F.East Remarks: Far East trade capacity westbound only via wayport calls along a Far East-West Africa (W.Af) link Service frequency averages eleven to twelve (11-12) days

33 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 33 Middle East/Indian Subcontinent Southern and East Africa, Indian Ocean Islands Trade overview The second largest trading partner with East and South Africa [ESAf], in terms of annualised trade capacity, is the composite Middle East plus Indian Subcontinent region [ME/ISC]. As of July 2011 container liner services provided 968,000 TEU between these two trade ends 5. There were seventeen (17) container carrying liner services operating along this trade, most of which, eleven (11), could be considered as trade dedicated and within that concentrating on East Africa (six), South Africa (three) and the Indian Ocean Islands (two). The remainder are all through wayport operations whereby the ME/ISC region is actually the way port call in between the Far East and ESAf say, as in the example of CMA CGM s ASEAS or that ESAf is itself the wayport to/from West Africa as with PIL and ZIM (Gold Star) s AMI/IAS. On two occasions, the WAX and FAX of CMA CGM and ZIM (Gold Star) respectively, both ME/ISC and ESAf are called in wayport capacities between the trade ends of the Far East and West Africa. At the moment, all services connect the two trade-ends via the Indian Ocean, both ways. There was one exception, Maersk (Safmarine) s MEW1. Still in operation it runs from Dubai, around the Arabian Peninsular calling at Jeddah en route, up through the Suez and Mediterranean and then down along the West Africa coast, its intended other trade end. However, the return was still southbound via the Cape of Good Hope and South Africa before turning northwards back to Dubai. Until as recently and into July 2011 regular stops were made at either Durban and/ or Walvis Bay (Namibia). None such are scheduled at the time of writing (mid-july 2011) although Durban calls are currently still (pencilled) in as from October The largest current single service in terms of trade capacity is MSC s India South Africa service, followed fairly closely by CSAV s amended Marco Polo service which until mid-2011continued past South Africa and on to the East Coast of South America. Combined, these two links provide 24% of the trade s total capacity. Table 5: ME/ISC-ESAf table of services Weekly Average Total Service Carriers Rotations vessel cap Trade Cap India-South Africa service MSC 1.0 2, ,800 Marco Polo CSAV 1.0 2, ,100 Safmarine: Masiika Express Maersk 1.0 2, ,500 Middle East-East Africa relay MSC 1.0 2, ,800 MESA Maersk 1.0 2,200 98,400 Swahili Express CMA CGM 0.8 2,200 79,200 Mascereignes CMA CGM 1.0 1,600 71,500 Safmarine: Mombasa Express Maersk 0.6 2,500 68,800 Safmarine: Indian Ocean Service Maersk 1.0 1,300 56,800 GIA Emirates 0.7 1,900 54,600 UAFL Middle East Express DAL 0.6 1,700 44,300 ASEA CMA CGM 0.9 1,700 17,600 AMI / (Gold Star) IAS ZIM, PIL 0.9 1,300 6,500 Gold Star Line FAX ZIM 0.6 2,300 3,200 AFA Emirates 0.5 1,800 3,000 East and South Africa service Messina 0.5 1,600 2,000 Totals , ,100 5 This figure includes just over 6,000 TEU in Southbound capacity, to ESAf only.

34 34 East Africa & Southern Africa Container Trades The 17 services are offered by nine (9) vessel operating carriers or groupings. With the exception of PIL, who co-operates with ZIM (Gold Star Line) on the ME/ISC-West Africa AMI/IAS, all operators provide at least one standalone sling. Two groupings, Maersk, through Maersk Line and/ or Safmarine, and CMA CGM as itself and/ or through Delmas, actually provide four standalone services each. All the providers are fairly established, with Emirates being the newest but believed to be well-backed. Coincidentally Credo Shipping of Singapore, established by a former Emirates executive, opened the apparently short-lived Spice service between Karachi/Dubai and EAf in Q Only seven of the services all trade dedicated links provide a weekly two-way connection between ESAf and ME/ISC. The other dedicated services operate at a lower average frequency and as such the number of vessels deployed on these lines varies from the two (2) placed on Maersk (Safmarine s) Salalah- Mombasa service, the Mombasa Express, to a maximum of five for a fuller port complement. Table 6: ESAf-ME/ISC trade list of vessel operating carriers Weekly Average Total Carrier Vessels Rotations vessel cap Trade Cap Maersk [incl Safmarine] , ,400 MSC , ,600 CMA CGM [+ Delmas] , ,300 CSAV , ,100 Emirates ,800 57,700 DAL [+ UAFL] ,700 44,300 ZIM ( Gold Star) ,100 7,100 Messina ,600 2,000 PIL ,100 2,700 Totals 76-2, ,100 None of the wayport services offer a weekly frequency. This may be because they only call at ME/ISC and/ or ESAf in one direction 6 such as ZIM (Gold Star Line) s FAX or are themselves not actually operated once every 7 days as with CMA CGM s ASEAS. As a result, the largest number of vessels deployed on any service connecting this particular trade is eight (8), these being noted on the aforementioned FAX which runs between the Far East and West Africa. Further, the total of the averaged weekly port rotations is less than fourteen (14). Combined, the 9 carriers and 17 services still deploy a reasonably large number of ships, seventy-six (76). These in turn provide more than 156,000 TEU in nominal carrying container capacity, averaging therefore 2,100 TEU per ship. CMA CGM and Maersk, as groups, deploy the most vessels, accounting for very nearly half of the total in numbers. However, it is Maersk and MSC who together provide most carrying capacity at 41% although if CMA CGM were added this would rise to 59%. Unsurprisingly these three carriers are the largest in terms of trade capacity although Maersk on its own accounts for nearly 35% of the total. MSC and CMA CGM together take up another 41%. Some fifteen (15) ESAf ports are called. Geographically, these range from Mombasa in Kenya and Port Victoria in the Indian Ocean and the most northerly called to Port Louis, Mauritius to the south and somewhat deeper in the Indian Ocean to the east and then moving all the way around South Africa to Cape Town on the South Atlantic seaboard. There are nearly thirty-nine (39) calls made in an average week to these 15 ports. The most popular in terms of weekly visits is Mombasa followed by continental neighbour Dar Es Salaam in Tanzania. They receive 41% of all weekly port calls. However, Durban is the largest recipient of calculated trade capacity and together with Mombasa helps account for nearly 49% of that particular total. The most popular ME/ISC trading partners in terms of allocated trade capacity are Salalah in Southwestern Oman on the Indian Ocean/Arabian Sea and Dubai who together received 48%. 6 In the case of wayport calls, a dip into a port in one direction only counts as 0.5 thus a dip on the way back as well would count as 1.0 full call, thereby avoiding double counting and allocation of capacity.

35 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 35 Table 7: ESAf ports called on ME/ISC services Weekly Average Total Port Rotations vessel cap Trade Cap Durban, ZA 5.5 2, ,400 Mombasa, KE 9.0 2, ,600 Dar Es Salaam, TZ 7.0 2, ,800 Cape Town, ZA 1.0 2,600 57,100 Port Elizabeth, ZA 1.0 2,200 49,200 Zanzibar, TZ 3.0 1,900 46,900 Toamasina [Tamatave], MG 2.0 1,500 46,500 Longoni, YT 1.5 1,800 26,200 Port Victoria (Mahe), SC 1.5 1,500 26,200 Port Louis, MU 1.0 1,500 23,300 Port Reunion, RE 1.0 1,500 23,300 Nacala, MZ 1.0 2,200 17,600 Tanga, TZ 2.5 1,700 15,000 Mutsamudu, KM 0.5 1,700 5,500 Maputo, MZ 1.0 1, Totals , ,100 Container liner services Notes: - Services have been sorted in descending order of trade capacity - Southbound (SB) = to Southern Africa, East Africa and Indian Ocean Islands - Northbound (NB) = from to Southern Africa, East Africa and Indian Ocean Islands - Differences may occur due to rounding MSC India South Africa service 5 2,600 TEU average, providing ME/ISC-ESAf trade capacity of 121,800 TEU Mid.East/ Ind.Subcont rotation: Colombo, Mundra, Dubai, Port Qasim, Mundra, Nhava Sheva, Colombo Way- or non-core port calls: SB: - NB: - ESAf rotation: Durban ME/ISC Remarks: Trade dedicated service CSAV Marco Polo 5 2,600 TEU average, providing ME/ISC-ESAf trade capacity of 114,100 TEU Mid.East/ Ind.Subcont Dubai, Karachi, Nhava Sheva rotation : Way- or non-core port calls: SB: - NB: - ESAf rotation: Durban, Cape Town ME/ISC Remarks: Trade dedicated service Service re-arranged in March 2011 when it also used to extend to East Coast South America, that leg being covered by the ASAX [as was]. Port Elizabeth, South Africa, scheduled for a two month period from start August to end September; Mundra, India, was to be added as from September before this service was actually cancelled that September, CSAV replacing it with slots from a similar MSC operation [above]. See Post Publications Developments September 2011

36 36 East Africa & Southern Africa Container Trades Maersk (Safmarine) Masiika Express 5 2,500 TEU average, providing ME/ISC-ESAf trade capacity of 110,500 TEU Mid.East/ Ind.Subcont rotation : Salalah, Sharjah, Dubai, Salalah Way- or non-core port calls: SB: - NB: - ESAf rotation: Dar Es Salaam Mombasa ME/ISC Remarks: Trade dedicated service Launched end-2009 MSC Middle East Africa relay 5 2,500 TEU average, providing ME/ISC-ESAf trade capacity of 108,800 TEU Mid.East/ Ind.Subcont rotation: Dubai, Salalah Way- or non-core port calls: SB: - NB: - ESAf rotation: Dar Es Salaam Mombasa ME/ISC Remarks: Trade dedicated service Maersk (Maersk Line + Safmarine) MESA / MESA 6 2,200 TEU average, providing ME/ISC-ESAf trade capacity of 98,400 TEU Mid.East/ Ind.Subcont rotation: Salalah, Dubai, Port Qasim, Nhava Sheva Way- or non-core port calls: SB: - NB: - ESAf rotation: Durban, Port Elizabeth, Durban ME/ISC Remarks: Trade dedicated service Marketed by Maersk Line, specifically, as a northbound rotation only. Salalah dropped September See Post Publication Developments September 2011 too. CMA CGM (CMA CGM + Delmas) Swahili / Swahili 5 2,200 TEU average, providing ME/ISC-ESAf trade capacity of 79,200 TEU Mid.East/ Ind.Subcont rotation: Nhava Sheva, Bandar Shahid, Dubai, Khor Fakkan Way- or non-core port calls: SB: - NB: - ESAf rotation: Mombasa Zanzibar, Dar Es Salaam Nacala Longoni ME/ISC Remarks: Trade dedicated service Service frequency averages between eight and nine (8-9) days following addition of a sixth vessel in March 2011 CMA CGM (CMA CGM) Mascareignes 4 1,600 TEU average, providing ME/ISC-ESAf trade capacity of 71,500 TEU Mid.East/ Ind.Subcont rotation: Mundra, Port Qasim, Khor Fakkan Way- or non-core port calls: SB: - NB: - ESAf rotation: Port Reunion Port Louis Tamatave Longoni Victoria ME/ISC Remarks: Trade dedicated service. Khor Fakkan replaced Salalah as port of call in early 2011.

37 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 37 Maersk (Safmarine) Mombasa Express 2 2,500 TEU average, providing ME/ISC-ESAf trade capacity of 68,800 TEU Mid.East/ Ind.Subcont rotation : Salalah Way- or non-core port calls: SB: - NB: - ESAf rotation: Mombasa ME/ISC Remarks: Trade dedicated service Launched end-2009; service frequency averaging between eleven and twelve (11-12) days Maersk (Safmarine) Indian Ocean Service 4 1,300 TEU average, providing ME/ISC-ESAf trade capacity of 56,800 TEU Mid.East/ Ind.Subcont rotation : Salalah Way- or non-core port calls: SB: - NB: - ESAf rotation: Port Louis Tamatave Victoria ME/ISC Remarks: Trade dedicated service Emirates Shipping Line Gulf Indian Sub Continent Africa GIA 3 1,900 TEU average, providing ME/ISC-ESAf trade capacity of 54,600 TEU Mid.East/ Ind.Subcont rotation : Dubai, Sharjah Way- or non-core port calls: SB: - NB: - ESAf rotation: Mombasa Zanzibar, Dar Es Salaam ME/ISC Remarks: Trade dedicated service Service frequency averaging between ten and eleven (10-11) days Deutsche Afrika Linien, DAL (United Africa Feeder Line, UAFL) Middle East Express 3 1,700 TEU average, providing ME/ISC-ESAf trade capacity of 44,300 TEU Mid.East/ Ind.Subcont rotation : Karachi, Dubai Way- or non-core port calls: SB: - NB: - ESAf rotation: Zanzibar Mutsamudu Longoni Tanga Mombasa ME/ISC Remarks: Trade dedicated service Service launched January Frequency averaging between eleven and twelve (11-12) days CMA CGM (CMA CGM + Delmas) ASEA / ASEA Asia-East Africa Line 6 1,700 TEU average, providing Far East-ESAf trade capacity of 17,600 TEU Way- or non-core port calls: Port Kelang, Singapore Ind.Subcont Mid.East/ Ind.Subcont calls: SB: Colombo, Male 1 Ind.Ocean NB: Colombo Far East ESAf rotation: Victoria 1 Mombasa Tanga 1, Dar Es Salaam Ind.Subcont Remarks: Indian Subcontinent trade capacity via wayport calls at Colombo only 1 Called once every two rotations only Service frequency around once every eight (8) days

38 38 East Africa & Southern Africa Container Trades Pacific International Lines, ZIM (Gold Star Line) Africa Middle East Service AMI / Indian Ocean Africa Service IAS 6 (3/3) 1,300 TEU average, providing ME/ISC-ESAf trade capacity of 6,600 TEU Mid.East/ Ind.Subcont Karachi, Nhava Sheva, Mundra, Dubai rotation: ESAf calls: SB: Durban NB: Durban Ind.Subcont Way- or non-core port calls: Lagos (Apapa), Tema, Cotonou S.Af Remarks: Indian Subcontinent trade capacity through wayport calls at Durban only en route to/from West Africa. ZIM (Gold Star Line) FAX Far East Africa Express 8 2,300 TEU average, providing ME/ISC -ESAf trade capacity of 3,200 TEU Mid.East/ Ind.Subcont Colombo S.Af rotation: ESAf calls: SB: Durban W.Af NB: - Way- or non-core port rotation: Tema, Lagos (Tin Can), Takoradi, Abidjan Colombo Port Kelang, Shanghai, Ningbo, Dachan Bay Ind.Subcont Remarks: Indian Subcontinent trade capacity southbound only via wayport calls at Colombo and Durban along a Far East- West Africa (W.Af) link Service frequency averages eleven to twelve (11-12) days Emirates Shipping Line Africa Far East Asia AFA 3 1,800 TEU average, providing ME/ISC -ESAf trade capacity of 3,000 TEU Mid.East/ Ind.Subcont call: SB: Colombo E.Af ESAf rotation: Mombasa Tanga, Dar Es Salaam Far East Way- or non-core port Singapore, Hong Kong, Shenzhen (Shekou), Singapore, Port Kelang Ind.Subcont rotation: Remarks: Indian Subcontinent trade capacity southbound only via wayport calls at Colombo along a Far East-East Africa trade dedicated link Average service frequency around once every fifteen (15) days Messina East and South Africa service 4 1,600 TEU average, providing ME/ISC -ESAf trade capacity of 2,000 TEU Way- or non-core port rotation: Genoa, Barcelona, Naples Mid.East Mid.East/ Ind.Subcont call: SB: Jeddah E.Af/S.Af NB: Jeddah Mediterranean ESAf rotation: Mombasa Dar Es Salaam Durban Maputo Dar Es Salaam Mombasa Mid.East Remarks: Container-Roll on/roll off vessels deployed Middle East trade capacity via wayport calls at Jeddah en route to/from and between the Mediterranean and East and Southern Africa. Average service frequency around once every fifteen (15) days

39 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 39

40 40 East Africa & Southern Africa Container Trades North Europe and Mediterranean Southern and East Africa, Indian Ocean Islands Trade overview As of July 2011, between the North Europe plus the Mediterranean, and the East and Southern Africa region container liner services provided more than 700,000 TEU in of annualised trade capacity 7. This came from a relatively small number of services, eight (8). Between ME/ISC and ESAf more than twice as many services mustered only 25% more trade capacity. Seven (7) of the eight connected the two trades as end-points with MSC s Europe-Australia service providing a southbound connection to Indian Ocean Islands as wayport calls on the way to Australia. Maersk group s WAF5 and SafMed included wayport calls of their own in West Africa whilst Messina s East Africa service 8 wayports in Salalah, Oman. Table 8: North Europe/Mediterranean table of services Weekly Average Total Service Carriers Rotations vessel cap Trade Cap Europe-South Africa service MSC 1.0 6, ,500 SAECS / SAX Maersk, MOL, DAL 1.0 4, ,300 Reefer Express / SRE Maersk, MOL, DAL 1.0 1,500 65,300 WAF 5 Loop 1 Maersk 1.0 1,500 56,100 Safmarine: SafMed Maersk 1.0 1,100 42,600 MACS service MACS 1.0 1,900 41,500 East and South Africa service Messina 0.5 1,600 14,200 Europe-Australia service MSC 1.0 3,300 9,800 Totals 7.5 3, ,200 Messina s line has the distinction of being the only Europe/Mediterranean service that connects directly with East Africa in particular. Formally speaking this sole representation has only been the case since mid-2011 which is when ZIM pulled its EAS Israel to ESAf link [Mombasa, Dar Es Salaam, Durban], this also being similarly multipurpose/breakbulk but only operating every month deploying one or two ships only. Originally a Red Sea-EAf service, in mid-2009 the Eilat (Israel Red Sea) port of call was moved to the Mediterranean port of Haifa. The two largest current services in terms of trade capacity, by far, were MSC s standalone service between North Europe and South Africa and the directly competing SAECS consortium of Deutsche Afrika-Linien, Maersk, Safmarine and MOL. Together these two services provided over two-thirds of the trade total. They also deployed the largest ships, by far, at 6,500 TEU and 4,700 TEU average respectively, the next largest being 1,900 TEU. Six (6) of the services are standalone operations with SAECS providing the only joint operations, it [re- ]launching its peak seasonal Reefer Express service a little later than normal in mid As implied this service is run on a seasonal basis, reported start/finish times of the past few years being February and August. Interestingly Maersk (Safmarine) had launched a South Africa-Mediterranean service, SafMed in February 2011 which was thought in some quarters to be a similar, albeit reduced, reefer seasonal service. With respect to East Africa, there is no direct service from/to North Europe. And for Indian Ocean, MSC is the only carrier left with a direct, albeit southbound-only connection from both North European and Mediterranean ports. This situation obviously reflects the relatively small volumes between the two areas and the fact that East Africa/Indian Ocean has increasingly focused on (import in particular) trade with Asia. 7 This figure includes nearly 10,000 TEU in Southbound only capacity, to ESAf (actually Indian Ocean Islands). 8 This is a Roll-on/ Roll-off container service.

41 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 41 Not too long ago, two carrier consortia were present in the direct North Europe/Mediterranean-East Africa and Indian Ocean box trade. Comprising in part shipping companies no longer existing today (at all or in the same form), those concerned EACS and CAPRICORN/IOL: EACS (East Africa Container Service) A Europe-East Africa vessel sharing and space swap agreement, EACS was formed in 1991 by no less than 8 carriers: CGM, DSR, Ellerman, Harrison and P&O forming the Beacon consortium, and independents Kenya National Shipping Line (KNSL), MSC and WEC Lines, this last named actually joining Beacon. Beacon saw many changes in the course of the years as Ellerman was taken over by Andrew Weir (1991); DSR merged with Senator to become DSR Senator Lines (1994 and in which Hanjin took an 80% share in 1997); CGM departed in mid-1993 to the competing Capricorne group; P&O merged with Nedlloyd in 1997 (and acquired Harrison 2 years later). At the end of the 1990s, Senator Lines withdrew from the Africa trades, transferring the East and South Africa interest to H. Stinnes Linien, whose successor company still serves South Africa through slots from SAECS. By the start of the new millennium two-loop EACS comprised Beacon, now made up of Ellerman (Andrew Weir), P&O Nedlloyd, H. Stinnes and WEC on one hand and MSC with slot chartering KNSL on the other. Following the early 2003 Hamburg Süd takeover of Andrew Weir s deepsea liner services, selling the Ellerman East Africa rights to H. Stinnes, the Beacon consortium was disbanded with the remaining partners becoming slotcharterers on MSC s service, the single surviving direct link. Halfway through 2004 MSC converted its EACS service into a transhipment operation via Jeddah from where three 1,500 TEU average MSC ships served Djibouti, Mombasa and Dar Es Salaam weekly. Muscat and Salalah have subsequently served as hub ports with Durban now also fulfilling that position for East Africa. KNSL (now with MSC investment) and WEC remained in this set up; P&O Nedlloyd created its own transhipment solution and H. Stinnes withdrew from East Africa altogether. CAPRICORNE/IOAL In its early stages, the Capricorne pool comprised carriers as Compagnie des Messageries Maritimes (in 1997 merged with Compagnie Generale Transatlantique to form CGM), Hansa Linie (failed in 1980, this route then taken over by Hapag-Lloyd), Navale et Commerciale Havraise Péninsulaire (NCHP, in 1986 acquired by Société Chargeurs Delmas- Vieljeux, the present Delmas), SEAL, a brand of DAL, Deutsche Afrika-Linien, and Société Malgache de Transports Maritimes (SMTM, the national line of Madagascar, closed down in 2008). In 1998 the Indian Ocean Africa Line (IOAL) pool agreement was formed on, amongst others, the basis of Capricorne. IOAL partners then were CGM, Delmas, Safmarine and SEAL. However, Safmarine left shortly afterwards to become a slotcharterer on EACS. CGM merged into CMA CGM in 1999 who later acquired Delmas, and therewith took the lead over IOAL, in late 2005, abd by then DAL had dropped the SEAL brand. IOAL came to an end in February 2007, when CMA CGM (with participation from DAL and Delmas) initiated NEMO (short New Europe- Mascareignes-Oceania), a new loop between North Europe, Mediterranean, Red Sea, Indian Ocean Islands, Australasia and back to Europe via India and South East Asia, This solution degraded the Indian Ocean Islands into a southbound wayport destination with a transhipment solution for the small northbound trade. Less than two years later, the Indian Ocean Islands call was removed from an overhauled NEMO service altogether, leaving MSC as the single -southbound only en route to Australiacarrier to serve the direct Europe/Mediterranean- Indian Ocean Islands trade (nowadays with DAL, Deutsche Afrika-Linien as a slotcharterer).

42 42 East Africa & Southern Africa Container Trades The 8 services are provided by only six (6) vessel operating carriers, with MACS Maritime Carrier Shipping the only one yet to be mentioned. Maersk and MSC, again, are dominant in terms of vessels providing 71% of the total of 56 and 78% of the deployed carrying Table 9: North Europe/Mediterranean-ESAf list of vessel operating carriers Weekly Average Total Carrier Vessels Rotations vessel cap Trade Cap MSC , ,200 Maersk [incl. Safmarine] , ,400 MOL ,700 74,000 MACS ,900 41,500 DAL ,900 39,900 Messina ,600 14,200 Totals 56-3, ,200 capacity of 165,300 TEU. Leaving aside the thirteen (13) placed on the MSC Australia weekly service and the four (4) on Messina s fortnightly multipurpose link, all the services require from five (5) to seven (7) vessels to maintain their regular, weekly, frequency. This particular trade has proved to be very difficult for newcomers to break into despite regular reference being made as to shippers wanting further choice. One local (South African) shipping personality, who, amongst others, was the agent of former Kien Hung s short lived North Europe-South Africa service, was involved in at least three attempts to run a North Europe-South Africa liner service for a sustained period. The last attempt over the end of 2009 and early 2010, MBG Shipping, intended to be reefer heavy operating four vessels of up to around 1,700 TEU hoping to gain a 10% market share of South Africa s fruit export. However, for a variety of reasons, formally down to supply and supplier issues, it barely got moving at all having reportedly not even survived its (delayed) maiden voyage despite the apparent initial backing of an investor with fruit growing interests. SAECS (Southern Africa Europe Container Service) One of the oldest consortia in the container shipping business it was initially a joint-marketing formed in 1976 by CGM, Chargeurs Réunis, Compagnie Maritime Belge (CMB), Deutsche Afrika-Linien (DAL), Ellerman Harrison Container Line (EHCL), Lloyd Triestino, Nedlloyd Lines, Overseas Containers Ltd (OCL) and Safmarine, the then national carrier of South Africa. Originally, it provided two separate slings: one to/ from North Europe and the other one, SAMECS (Southern Africa Mediterranean Container Service), connecting with the Mediterranean. This was actually suspended in the early 1990s although in its current form the consortium has operated, for the most part, peak season auxiliary loops albeit to/ from North Europe. Over the years membership of SAECS has changed considerably. Again in the early 1990s it comprised CGM, CMB, DAL, EHCL, Lloyd Triestino, Navale Delmas International, Nedlloyd, P&O Container Line and Safmarine. Within a decade though the membership had dwindled to reflect DAL, Maersk Sealand [as was], the combined P&O Nedlloyd, plus Safmarine, who had by then actually been taken over by the Maersk group. A further change was precipitated by Maersk s takeover in 2005 of (Royal) P&O Nedlloyd. A condition placed upon this by the European Commission was that P&O Nedlloyd s participation in the consortium had to go. This indeed took place with the sale of same to Mitsui-OSK Lines (MOL) of Japan (MOL), who started operations on SAECS in early At the same time, the money pool status of SAECS was changed into a vessel sharing agreement. The consortium has, since then, enjoyed a period of relative stability in terms of membership. The originals of DAL and Safmarine (albeit as part of Maersk) remain with Maersk Line, the brand succeeding Maersk Sealand and P&O Nedlloyd, and MOL the other two current members. Prior to that it was SA Independent Liner Service, SAILS who started operations in early 2006 and perhaps had the best chance of succeeding, especially when the London listed Lonrho came on board building up majority ownership. With this backing, SAILS was able to develop from a monthly service of 2x 650 TEU ships to one of 4x 1,000 TEU (average) providing three sailings a month with the original small units re-deployed to a South Africa-West Africa feeder link. Other support arguably came in 2008 when Lonrho acquired a majority stake in a South African fresh produce group Rollex. This company sourced, packed and delivered fresh fruit, vegetable and fish produce from across Africa to major retail clients, including Marks & Spencer, Tesco and Sainsbury in Europe.

43 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 43 Even with all this, it seems a competing North Europe-South Africa liner operation was unsustainable it posting a loss that was only GBP 0.6mn lower than its turnover of GBP 6.7mn for a six month period only. As a result SAILS, whose local founder had by now departed, was placed in liquidation in October And before all this was an even earlier attempt, SALCS (South African Liner Container Service), supported by local South African owners under the black empowerment initiative, but it too suffered the same fate ceasing operations after a short-while over mid It would seem, that in order to survive in North Europe-Southern Africa dry cargo shipping deep pockets, local connections and perhaps most importantly, capacity is necessary to survive. At the time SAILS was up and running, SAECS, for example, had access to all three aspects with capacity double if not triple that of SAILS and then on a weekly basis. If wanting to compete particularly on reefer traffic, there may well be a very valid reason why SAECS operates a reefer service for part of a year. Perhaps in this regard even MSC s silence speaks volumes. Twelve (12) different ESAf ports are called with South Africa, as a country, dominating. Given that South Africa is the focus of all bar one of the 8 loops, this is not a surprise. Calls to Namibia on the Atlantic sea board and, Kenya, Mozambique and Tanzania on the Indian Ocean being made by MACS, a lift-on/lift-off multipurpose operator, and Messina respectively. The Indian Ocean Island calls have already been covered by the MSC Australia service. Table 10: ESAf ports called on North Europe/Mediterranean services Weekly Average Total Port Rotations vessel cap Trade Cap Cape Town, ZA 5.0 3, ,800 Durban, ZA 5.0 3, ,700 Port Elizabeth, ZA 2.3 2, ,400 Ngqura, ZA 1.0 6,500 96,200 Walvis Bay, NA 2.0 1,700 64,000 East London, ZA 1.0 1,900 7,900 Richards Bay, ZA 1.0 1,900 7,900 Port Louis, MU 0.5 3,300 4,900 Port Reunion, RE 0.5 3,300 4,900 Mombasa, KE 1.0 1,600 3,500 Maputo, MZ 1.0 1,600 3,500 Dar Es Salaam, TZ 1.0 1,600 3,500 Totals , ,200 The most popular ports in terms of terms of weekly visits are Durban and Cape Town with five (5) each out of a total of more than twenty-one per week for the region. They were also the most popular for trade capacity passing through, they combining for around 59% of the trade total. The most popular North Europe/Mediterranean ports of call were Rotterdam and Las Palmas respectively and through whom a third of this particular trade s capacity passed. Container liner services Notes: - Services have been sorted in descending order of trade capacity - Southbound (SB) = to Southern Africa, East Africa and Indian Ocean Islands - Northbound (NB) = from to Southern Africa, East Africa and Indian Ocean Islands - Differences may occur due to rounding MSC Europe-South Africa service 7 6,500 TEU average, providing N.Eur/Med- ESAf trade capacity of 288,400 TEU NEur/Med rotation: Las Palmas, Felixstowe, Rotterdam, Hamburg, Antwerp, Le Havre, Las Palmas Way- or non-core port calls: SB: - NB: - ESAf rotation: Cape Town, Ngqura, Durban, Ngqura, Cape Town Remarks: Trade dedicated service. Ngqura added as port call in Q1 2010

44 44 East Africa & Southern Africa Container Trades DAL (DAL), Maersk (Maersk Line + Safmarine), MOL Europe-Southern Africa / SAECS Main String / SRX 7 4,700 TEU average, providing N.Eur/Med-ESAf trade capacity of 206,300 TEU NEur/Med rotation: Las Palmas, Rotterdam, Tilbury, Bremerhaven, Las Palmas Way- or non-core port calls: SB: - NB: - ESAf rotation: Cape Town, Port Elizabeth, Durban, Cape Town Remarks: Trade dedicated service DAL (DAL), Maersk (Maersk Line + Safmarine), MOL Europe-Southern Africa / Reefer Express REX / SRE Reefer Express 5 1,500 TEU average, providing N.Eur/Med-ESAf trade capacity of 65,300 TEU NEur/Med rotation: Tilbury, Rotterdam Way- or non-core port calls: SB: - NB: - ESAf rotation: Port Elizabeth, Cape Town Remarks: Trade dedicated service Re-launched end May 2011; the SAECS consortium often places a seasonal service paralleling its main string for part of the year. In that regard, that MOL s current [July] schedule does not extend past early September 2011 may be noteworthy indeed, see Post Publication Developments for September Maersk (Maersk Line) WAF 5 7 1,500 TEU average, providing N.Eur/Med-ESAf trade capacity of 56,100 TEU NEur/Med rotation: Algeciras, Leixoes, Vigo, Lisbon, Algeciras, Tangier Way- or non-core port calls: SB: Luanda NB: Conakry ESAf rotation: Walvis Bay Remarks: Trade dedicated service to West and Southern Africa Maersk (Safmarine) SafMed via Algeciras 6 1,100 TEU average, providing N.Eur/Med-ESAf trade capacity of 43,700 TEU NEur/Med rotation: Algeciras, Way- or non-core port calls: SB: NB: Dakar ESAf rotation: Durban, Cape Town Remarks: Trade dedicated service to West and Southern Africa. Launched March 2011; also referred to as the 225 service MACS Maritime Carrier Shipping MACS service 7 1,900 TEU average, providing N.Eur/Med-ESAf trade capacity of 41,500 TEU NEur/Med rotation: Vigo, Rotterdam, Hamburg, Antwerp, Le Havre, Lisbon Way- or non-core port calls: SB: - NB: - ESAf rotation: Walvis Bay, Cape Town, Port Elizabeth 1, East London, Durban, Richards Bay, Durban, Cape Town, Walvis Bay Remarks: Trade dedicated, breakbulk/multipurpose service Frequency averages around nine to ten (9-10) days 1 Called every fourth rotation on average

45 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 45 Messina East and South Africa service 4 1,600 TEU average, providing N.Eur/Med-ESAf trade capacity of 14,100 TEU NEur/Med rotation: Genoa, Barcelona, Naples Way- or non-core port calls: SB: Jeddah NB: Jeddah Mediterranean ESAf rotation: Mombasa Dar Es Salaam Durban Maputo Dar Es Salaam Mombasa Remarks: Container-Roll on/roll off vessels deployed Average service frequency around once every fifteen (15) days MSC Europe-Australia service 4 1,600 TEU average, providing ME/ISC -ESAf trade capacity of 9,800 TEU Gioia Tauro, La Spezia, Felixstowe, Antwerp, Le Havre, Montoir, Valencia, Marseilles, NEur/Med rotation: Naples ESAf calls: SB: Port Reunion Port Louis NB: Way- or non-core port calls : Australia (4 ports), returning via Singapore, Colombo and Jeddah N.Eur Remarks: Multitrade service with North Europe/Mediterranean-Indian Ocean islands trade capacity southbound only via wayport calls at Reunion en route to Australia. DAL charters slots between Europe/Mediterranean and Indian Ocean Islands (Reunion and Port Louis). See Post Publication Developments September 2011.

46 46 East Africa & Southern Africa Container Trades West Africa East and Southern Africa Trade overview Container liner services operating in July 2011 and offering direct connections between West Africa and East and Southern Africa provided approaching 219,000 TEU in terms of annualised trade capacity 9. This actually came from some nineteen (19) different services although only six (6) were trade dedicated. The rest were as wayport calls at either Southern Africa on the way to/ from the Far East such as with NileDutch and NYK s joint SWX or at West Africa on the way to/from North Europe/Mediterranean-South Africa as with the Maersk group s WAF 5 Loop 1. Table 11: West Africa-ESAf table of services Weekly Average Total Service Carriers Rotations vessel cap Trade Cap South Africa-Angola service MSC 0.8 1,200 38,600 AOS MOL 0.6 1,200 28,800 Safmarine: Walvis B.-Luanda fdr Maersk ,100 FEW 2 / FW 2 Maersk 1.0 3,300 17,200 New Discovery CSAV 1.0 2,700 13,000 West Coast service s.2 OACL 0.2 1,100 11,100 Delmas West Feeder CMA CGM ,100 WAF 5 Loop 1 Maersk 1.0 1,500 9,300 Far East-Africa NileDutch 0.5 2,600 8,300 WSX / WAFCO China Shipping, "K" Line, Hapag-Lloyd 0.7 2,500 8,000 Safmarine SafMed Maersk 1.0 1,100 7,100 SW2 PIL 1.0 1,700 6,700 SWX - S.and W. Africa Exp NileDutch, NYK 0.5 2,600 6,600 AMI / (Gold Star) IAS ZIM, PIL 0.9 1,300 6,500 WAX - W.Africa Exp. CMA CGM 0.9 3,300 6,000 ASAF-DAPDEL CMA CGM 0.8 1,900 4,600 SWS PIL 1.0 2,000 4,300 Safmarine SafWaf Combo Maersk ,300 Gold Star Line FAX ZIM 0.6 2,300 3,200 Totals , ,000 The largest single services in terms of trade capacity were both standalone links, one being MSC s South Africa- Angola service, the other being MOL s AOS. Combined they provided 31% of this particular trade s annualised trade capacity even though they both only deployed ships of 1,200 TEU on average below the trade average at frequencies of longer than one week. In line with other trades, the number of joint operations was relatively low, in this case three (3). Therefore there was also a relatively low number of vessel operating carriers at thirteen (13). The combined fleet that they deployed was, in contrast, fairly large at one hundred and eighteen (118) ships, this reflecting the dominance of wayport links which, by their nature, are but part of much longer services requiring many more vessels. Although MSC only operates three (3) ships on the West Africa-ESAf trades, it was still the second largest in terms of trade capacity as these 3 were trade dedicated. 9 This figure does include the just over 16,000 TEU trade capacity that is Northbound only, away from ESAf plus another 5,000 TEU which is Southbound only, to the region.

47 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 47 Together with Maersk, the largest provider of trade capacity, the two account for 46% of the total. Maersk is also the largest provider of vessels in terms of numbers (23% of the total) but not with respect to container carrying capacity. CMA CGM holds that position with Maersk second. In total they account of 43% of deployed container carrying capacity of 253,000 TEU. Table 12: West Africa-ESAf list of vessel operating carriers Hapag-Lloyd ,500 1,100 As tends to happen with trades Totals 118-2, ,000 whereby shoreside infrastructure is not as developed, as in West Africa for example, service frequencies are not necessarily always weekly. Indeed, only seven (7) of the 19 operate at such regularity which shows again how much the vessel fleet deployed is skewed by the wayport links. These services also provided the largest vessels although this only went up to 3,300 TEU on average, such a size appearing on two services, Maersk s FEW 2 and CMA CGM s WAX, both being Far East-West Africa connections. Contrasting the fairly high number of services, carriers and vessels, only five (5) ports in the region under study provide direct calls with West Africa. All are located in Southern Africa with only one, Walvis Bay in Namibia, being non- South Africa, the country. It is, Weekly Average Total Carrier Vessels Rotations vessel cap Trade Cap Maersk [incl Safmarine] ,900 62,100 MSC ,200 38,600 MOL ,200 28,800 CMA CGM [+ Delmas] ,500 21,700 PIL ,800 13,700 CSAV ,700 13,000 NileDutch ,600 11,500 OACL ,100 11,100 ZIM [+ Gold Star] ,100 7,100 China Shipping ,500 4,600 NYK ,700 3,400 "K" Line ,500 2,300 Table 13: ESAf ports called on West Africa services Weekly Average Total Port Rotations vessel cap Trade Cap Walvis Bay, NA 8.5 1,500 92,700 Durban, ZA ,800 68,600 Cape Town, ZA 6.0 1,400 34,900 Ngqura, ZA 2.0 1,200 20,000 Port Elizabeth, ZA 1.0 1,100 2,800 Totals , ,000 coincidentally, also the largest when looking at trade capacity receiving, some 42% of the total. It is not the most frequently visited port though, this being Durban who receives an average of eleven (11) calls per week out of the trade total of twenty-eight to twenty-nine 10 (28-29). The most popular partner ports in West Africa were the Angolan ports of Luanda and Lobito. Together these two received more than 51% of the allocated ESAf-West Africa trade capacity. Container liner services Notes: - Services have been sorted in descending order of trade capacity - Southbound (SB) = to Southern Africa, East Africa and Indian Ocean Islands - Northbound (NB) = from to Southern Africa, East Africa and Indian Ocean Islands - Differences may occur due to rounding 10 With one-way wayports counted only as half

48 48 East Africa & Southern Africa Container Trades MSC South Africa-Angola service 3 1,200 TEU average, providing W.Af-ESAf trade capacity of 38,600 TEU W.Af rotation: Luanda, Lobito Way- or non-core port calls: NB: - SB: - ESAf rotation: Ngqura, Cape Town, Walvis Bay 1 Remarks: Trade dedicated service 1 Called every other rotation. Service rotation averages nine to ten (9-10) days [as identified] MOL AOS 2 1,200 TEU average, providing W.Af-ESAf trade capacity of 28,800 TEU W.Af rotation: Luanda, Lobito Way- or non-core port calls: NB: - SB: - ESAf rotation: Walvis Bay Ngqura, Durban Cape Town Walvis Bay Remarks: Trade dedicated service Service rotation averages every twelve to thirteen (12-13) days Maersk (Safmarine) Walvis Bay-Luanda feeder TEU average, providing W.Af-ESAf trade capacity of 25,100 TEU W.Af rotation: Luanda, Pointe Noire Way- or non-core port calls: NB: - SB: - ESAf rotation: Walvis Bay Remarks: Trade dedicated service Maersk (Maersk Line + Safmarine) FEW 2 / FW ,300 TEU average, providing W.Af--ESAf trade capacity of 17,200 TEU Way- or non-core port calls: Xiamen, Fuzhou, Busan, Shanghai, Ningbo, Guangzhou (Nansha), Port Tanjung Pelepas S.Af ESAf rotation: NB: Walvis Bay W.Af SB: Walvis Bay F.East W.Af rotation: Lagos (Apapa), Tema, Abidjan S.Af Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; from the Far East-West Africa end-to-end perspective, for NB read Westbound and SB read Eastbound [to Far East] West Africa trade capacity via wayport calls at Walvis Bay en route to/from and along a Far East-West Africa CSAV New Discovery 9 2,700 TEU average, providing W.Af--ESAf trade capacity of 13,000 TEU Way- or non-core port calls: Port Kelang, Ningbo, Shanghai, Shenzhen (Chiwan), Hong Kong, Port Kelang S.Af ESAf rotation: NB: Durban W.Af SB: Durban F.East W.Af rotation: Lagos, Cotonou, Tema, Abidjan S.Af Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; from the Far East-West Africa end-to-end perspective, for NB read Westbound and SB read Eastbound [to Far East] West Africa trade capacity via wayport calls at Durban along a Far East-West Africa (W.Af) link. Service launched June 2011 following the combination of two separate Far East-South Africa and South Africa-West Africa loops

49 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 49 Ocean Africa Container Line West Coast service sling 2 1 vessel of 1,100 TEU providing West Africa-ESAf trade capacity of 11,100 TEU W.Af rotation: Namibe, Lobito, Luanda Way- or non-core port calls: NB: - SB: - ESAf rotation: Durban, Port Elizabeth, Cape Town Walvis Bay Remarks: Trade dedicated service CMA CGM (Delmas) West feeder TEU average, providing West Africa-ESAf trade capacity of 11,100 TEU W.Af rotation: Boma, Matadi Way- or non-core port calls: NB: - SB: - ESAf rotation: Walvis Bay Remarks: Trade dedicated service Maersk (Maersk Line) WAF 5 7 1,500 TEU average, providing West Africa-ESAf trade capacity of 9,300 TEU Non-core port rotation: Algeciras, Leixoes, Vigo, Lisbon, Algeciras, Tangier W.Af calls: SB: Luanda S.Af NB: Conakry N.Eur/Med ESAf rotation: Walvis Bay W.Af Remarks: Although a trade dedicated service between North Europe/Mediterranean and West and Southern Africa, West Africa-South Africa trade capacity here is more characteristic of a wayport operation, with the two, one-way, port calls in West Africa acting in a similar manner. NileDutch Far East-Africa 6 2,600 TEU average, providing West Africa-ESAf trade capacity of 8,300 TEU Non-core port rotation: Xingang, Qingdao, Shanghai, Ningbo, Shenzhen (Shekou), Singapore S.Af ESAf calls: NB: Durban, Cape Town W.Af SB: Durban F.East W.Af rotation: Pointe Noire, Luanda S.Af Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-toend perspective, for NB read Westbound and SB read Eastbound [to Far East] West Africa trade capacity via wayport calls at Durban along a Far East-West Africa (W.Af) link. China Shipping, Hapag-Lloyd, K Line -/ WSX / WAFCO 7 (4/1/2) 2,500 TEU average, providing West Africa-ESAf trade capacity of 8,000 TEU Non-core port rotation: Port Kelang, Shanghai, Ningbo, Xiamen, Shenzhen (Shekou), Port Kelang S.Af ESAf calls: NB: Durban W.Af SB: Durban F.East W.Af rotation: Tema, Lome 1, Cotonou 1, Lagos (Tin Can) S.Af Remarks: 1 Called on alternate rotations Service frequency every ten to eleven (10-11) days on average NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-to-end perspective, for NB read Westbound and SB read Eastbound [to Far East] West Africa trade capacity via wayport calls along a Far East-West Africa link.

50 50 East Africa & Southern Africa Container Trades Maersk (Safmarine) SafMed via Algeciras 6 1,100 TEU average, providing West Africa -ESAf trade capacity of 7,100 TEU Way- or non-core port calls: Algeciras, W.Af call: SB: NB: Dakar ESAf rotation: Durban, Cape Town Remarks: Southern Africa-West Africa trade capacity through northbound wayport connection at Dakar en route to Algeciras Pacific International Lines South West Africa Container Service 2 SW ,700 TEU average, providing West Africa -ESAf trade capacity of 6,700 TEU Non-core port rotation: Singapore, Pasir Gudang, Hong Kong, Taichung, Fuzhou, Xiamen, Shantou, Hong Kong, Guangzhou (Nansha), Shenzhen (Shekou), Singapore S.Af ESAf calls: NB: Durban W.Af SB: Durban F.East W.Af rotation: Luanda, Lagos (Apapa), Libreville S.Af Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-toend perspective, for NB read Westbound and SB read Eastbound [to Far East] West Africa trade capacity via wayport calls at Durban as part of a longer Far East-West Africa link. Service launched in Q NileDutch, NYK South West Africa Express SWAX / South and West Africa Express SWX 6 2,600 TEU average, providing West Africa-ESAf trade capacity of 6,600 TEU Non-core port rotation: Singapore, Shanghai, Ningbo, Shenzhen (Shekou), Singapore S.Af ESAf calls: NB: Durban W.Af SB: Durban F.East W.Af rotation: Lome, Tema, Lagos (Apapa), Cotonou S.Af Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-toend perspective, for NB read Westbound [from Far East] and SB read Eastbound [to Far East] Far East trade capacity via wayport calls along a Far East-West Africa (W.Af) link Service frequency averages fourteen to fifteen (14-15) days. Pacific International Lines, ZIM (Gold Star Line) Africa Middle East Service AMI / Indian Ocean Africa Service IAS 6 (3/3) 1,300 TEU average, providing West Africa-ESAf trade capacity of 6,600 TEU Non-core port rotation: Karachi, Nhava Sheva, Mundra, Dubai ESAf calls: NB: Durban SB: Durban Ind.Subcont W.Af rotation: Lagos (Apapa), Tema, Cotonou S.Af Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade West Africa trade capacity through wayport calls at Durban only en route to/from Indian Subcontinent. CMA CGM (CMA CGM) WAX West Africa Express 11 3,300 TEU average, providing West Africa-ESAf trade capacity of 6,000 TEU Non-core port rotation: Port Kelang, Shanghai, Ningbo, Fuzhou, Shenzhen (Chiwan), Guangzhou (Nansha), Port Kelang S.Af ESAf calls: NB: Walvis Bay W.Af SB: W.Af rotation: Lagos (Apapa), Lagos (Tin Can), Lome, Abidjan Colombo F.East Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-toend perspective, for NB read Westbound [from Far East] and SB read Eastbound [to Far East] West Africa trade capacity northbound only via wayport call en route to West Africa from the Far East Service frequency averages seven to eight (7-8) days.

51 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 51 CMA CGM (CMA CGM + Delmas) ASAF-DAPDEL / Asia West Africa line ASAF 10 1,900 TEU average, providing West Africa-ESAf trade capacity of 4,600 TEU Non-core port rotation: Port Kelang, Ningbo, Shanghai, Shantou, Hong Kong, Shenzhen (Chiwan), Singapore, Port Kelang W.Af ESAf calls: NB: - SB: Cape Town, Durban F.East W.Af rotation: Pointe Noire, Luanda S.Africa Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-toend perspective, for NB read Westbound [from Far East] and SB read Eastbound [to Far East] West Africa trade capacity southbound only via wayport calls en route to Far East from West Africa Service frequency averages eight to nine (8-9) days. Pacific International Lines South West Africa Container Service SWS 10 2,000 TEU average, providing West Africa-ESAf trade capacity of 4,300 TEU Non-core port rotation: Pasir Gudang, Singapore, Xingang, Inchon, Kwangyang, Ningbo, Singapore S.Af ESAf calls: NB: Cape Town SB: Durban F.East W.Af rotation: Tema, Cotonou, Lagos (Apapa), Douala S.Af Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-toend perspective, for NB read Westbound [from Far East] and SB read Eastbound [to Far East] West Africa trade capacity only via wayport calls en route to/from/between Far East and West Africa Maersk (Safmarine) SafWaf Combo TEU average, providing West Africa-ESAf trade capacity of 3,300 TEU W.Af rotation: Namibe, Lobito, Sonils, Matadi, Pointe Noire, Libreville Way- or non-core port calls: NB: - SB: - ESAf rotation: Durban Remarks: Trade dedicated service utilising general cargo vessels ZIM (Gold Star Line) FAX Far East Africa Express 8 2,300 TEU average, providing West Africa-ESAf trade capacity of 3,200 TEU Non-core port rotation: Port Kelang, Shanghai, Ningbo, Dachan Bay ( Colombo, Sri Lanka) S.Af ESAf calls: NB: Durban SB: - W.Af rotation: Tema, Lagos (Tin Can), Takoradi, Abidjan Colombo F.East Remarks: NB/SB here from the perspective of the Southern Africa-West Africa trade; for the Far East-West Africa end-toend perspective, for NB read Westbound [from Far East] and SB read Eastbound [to Far East] Far East trade capacity northbound only via wayport call at Durban en route to West Africa from Far East Service frequency averages eleven to twelve (11-12) days

52 52 East Africa & Southern Africa Container Trades North America East and Southern Africa Trade overview The container liner trade between the North American 11 East and Gulf Coasts combined and East and Southern Africa is somewhat limited in terms of services, there being only three, although they do deliver a fairly reasonable of annualised trade capacity of 115,800 TEU and are all trade dedicated. Table 14: North America-ESAf Weekly Average Total Service Carriers Rotations vessel cap Trade Cap America Express / AMEX Maersk, MSC 1.0 2, ,700 Galborg GAL MACS 0.4 1,200 10,000 Mulitpurpose service CSAL ,100 Totals 1.7 1, ,764 This capacity is dominated by one link, the only full container offering, this being the joint AMEX of Maersk and MSC and which accounts for 87% of that trade capacity. Within that service, MSC, which is traditionally a standalone operator, employs vessels approaching two-thirds larger in nominal container carrying capacity than its partner. The other two services are multipurpose but their operators do also possess/lease a container box fleet which is made available to shippers and they operate along liner-like principles with scheduled rotations calling at fixed if not a regular set of ports. On the one-hand is Galborg, the effective continuation of Gulf Africa Line (GAL), the modern incarnation of which is majority owned by those who control MACS Maritime Carrier Shipping, MACS operating a lift-on/lift-off multipurpose service between Southern Africa and North Europe. The link is indeed useful as the Galborg service makes use of MACS cascaded tonnage to form the core of its vessel provision. On the other hand is Canada States Africa Line (CSAL) which operates the versatile Astrakhan type of ships of the old Soviet design which also incorporate stern ramps of 45 tons SWL and around 900m of lane capacity. Given the multipurpose nature of the Galborg and CSAL services, their (adjusted) container carrying capacities are fairly low (the average capacities given in the table and services are actually nominal, prior to adjustment). This, in combination with less than weekly frequency further translates into low annual trade capacities per service. All three services concentrate upon Southern Africa making twelve (12) calls in total each week. Richards Bay is a noteworthy inclusion it not usually being a container liner port of call but unsurprising it being on the multipurpose services rotations Table 15: North America-ESAf list of vessel operating carriers Weekly Average Total Carrier Vessels Rotations vessel cap Trade Cap MSC ,900 62,600 Maersk [incl Safmarine] ,800 38,200 MACS (Galborg) ,200 10,000 CSAL ,100 Totals 17-1, ,800 given its relationship with the extraction industries. Even so, Durban and Cape Town receive most calls per week, featuring on every rotation and combined accounting for over 64% of trade capacity. 11 North America, by implication, is more than just the United States and also incorporates both Canada, Mexico these three as in NAFTA and arguably the Bahamas, although there are in fact no direct services between Mexico and East Africa/ Southern Africa as identified.

53 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 53 Alongside Freeport, Bahamas and Montreal, Canada, eight (8) United States ports are called although the Galborg service concentrates on the Southern US (Florida and US Gulf) whilst the others more on the (North) East Coast. As such, Baltimore and Charleston combined to receive approaching 37% of all allocated trade capacity. Table 16: ESAf ports called on North America services Weekly Average Total Port Rotations vessel cap Trade Cap Durban, ZA 3.0 1,400 36,800 Cape Town, ZA 3.0 1,400 36,800 Port Elizabeth, ZA 1.0 2,300 33,600 Walvis Bay, NA 2.0 1,000 3,300 Richards Bay, ZA 2.0 1,000 3,300 Maputo, MZ 1.0 1,200 2,000 Totals , ,800 Container liner services Notes: - Services have been sorted in descending order of trade capacity - Southbound (SB) = to Southern Africa, East Africa and Indian Ocean Islands - Northbound (NB) = from to Southern Africa, East Africa and Indian Ocean Islands - Differences may occur due to rounding Maersk (Maersk Line + Safmarine) / MSC America Express AMEX /- 8 vessels (4/4)@ 2,300 TEU average, providing North America-ESAf trade capacity of 100,700 TEU N.Am rotation: New York (Newark), Baltimore, Norfolk, Charleston Way- or non-core port calls: SB: Freeport NB: - ESAf rotation: Cape Town, Port Elizabeth, Durban North America Remarks: Trade dedicated service, South Africa only MACS (Galborg) Galborg GAL 6 1,200 TEU average, providing North America-ESAf trade capacity of 9,900 TEU N.Am rotation: Houston, New Orleans, Jacksonville Way- or non-core port calls: SB: - NB: - ESAf rotation: Walvis Bay Cape Town, Durban Maputo Richards Bay, Durban North America Remarks: Trade dedicated service deploying multipurpose vessels on an eighteen-nineteen (18-19) average frequency Canada States Africa Line CSAL Multipurpose service TEU average, providing North America-ESAf trade capacity of 5,000 TEU N.Am rotation: Montreal Baltimore, Charleston, Savannah Way- or non-core port calls: SB: - NB: - ESAf rotation: Walvis Bay Durban, Richards Bay, Durban, Cape Town Walvis Bay North America Remarks: Trade dedicated service deploying Ro/Ro capable multipurpose vessels on an approximate twenty-two/twentythree (22-23)day average frequency

54 54 East Africa & Southern Africa Container Trades South America East and Southern Africa Trade overview This is the smallest deepsea and intercontinental shipping trade that connects with the ESAf region under study. It is also exclusively covered through wayport services in that South African ports, only, are called either on the way to and/ or on the way back from the East Coast of South America (ECSA, also only). The other trade end for these services is, also exclusively, the Far East. Effectively, therefore, the provision of full container liner services connecting Southern Africa and ECSA is derived from the service provision between the Far East and ECSA. It is by implication impacted by general trade lane and specific service changes. Indeed, when writing in May-June there were actually five (5) such wayport links whereas now there are only four (4) with more underlying changes than the pure service numbers suggest. Table 17: ECSA-ESAf table of services Weekly Average Total Service Carriers Rotations vessel cap Trade Cap NGX 2 / ASAS 2 Hamburg Süd, Maersk 1.0 4,400 26,600 CSW MOL 1.0 4,800 15,000 SEAS 1 / ASAX 1 China Shipping, CMA CGM, CSAV 1.0 5,700 11,500 SEAS 2 / ASAX 2 China Shipping, CMA CGM, CSAV 1.0 4,300 8,600 Totals 4.0 4,800 61,700 As wayport services, the calculated annual trade capacity is relatively low at approaching 62,000 TEU 13 with the joint Hamburg Süd and Maersk New Good Hope Express 2 / ASAS 2 being the largest providing 43% of that total. However, it is MOL, operating a substantial standalone Far East-South Africa-ECSA link, its CSW, which is the largest individual provider of trade capacity, it accounting for nearly a quarter. It s share looks set to grow as it has a vessel capacity expansion programme on this particular service which currently runs at an average of 4,800 TEU per ship, many of which will be replaced by units some 800 TEU larger. The other providers of SAf-ECSA wayport links are China Shipping, CMA CGM and CSAV who, in mid- 2011, came together to provide two revised joint operations, the SEAS/ASAX 1 & 2. These replaced previous and separate China Shipping/CMA CGM joint sling and a standalone CSAV one. Table 18: ECSA-ESAf list of vessel operating carriers Weekly Average Total Carrier Vessels Rotations vessel cap Trade Cap MOL ,800 15,000 Maersk [incl Safmarine] ,100 13,600 Hamburg Süd ,700 13,000 CSAV ,400 10,100 CMA CGM [+ Delmas] ,700 5,400 China Shipping ,800 4,600 Totals 45-4,800 61, See Dynamar s publication, The East Coast South America Container Trades, June This figure also includes around 35,000 TEU which is Eastbound capacity only, to South Africa from ECSA.

55 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 55 These 4 services only call at 4 South African ports and although operated on weekly frequencies they might only call these in one direction only, hence in this case the less than weekly rotations indicated against the ports. Durban Table 19: ESAF ports called on Latin America services is, again, the most popular port of call with 47% of specific trade capacity. On the other side of the South Atlantic Ocean the most popular ports of call were in Brazil, Paranagua and Santos, who received and shared in equal measure close to 40% of trade capacity. Container liner services Notes: Weekly Average Total Port Rotations vessel cap Trade Cap Durban, ZA 1.5 5,100 29,300 Ngqura, ZA 1.0 4,500 16,100 Port Elizabeth, ZA 0.5 4,400 8,900 Cape Town, ZA 0.5 4,800 7,500 - Services have been sorted in descending order of trade capacity - Westbound (WB) = to Southern Africa, East Africa and Indian Ocean Islands - Eastbound (EB) = from Southern Africa, East Africa and Indian Ocean Islands - Differences may occur due to rounding Totals 3.5 4,800 61,700 Hamburg Süd, Maersk (Maersk Line) Asia-South Africa/South America East Coast New Good Hope Express 2 / ASAS ,400 TEU average, providing ECSA-ESAf trade capacity of 26,600 TEU Non-core ports rotation: Shanghai, Guangzhou (Nansha), Hong Kong, Singapore S.Af ESAf calls: WB: Durban ECSA EB: Port Elizabeth, Durban F.East ECSA rotation: Suape, Sepetiba, Itajai (Navegantes), Santos S.Af Remarks: ECSA trade capacity via wayport calls made in South Africa in between the Far East and ECSA MOL CSW 13 4,700 TEU average, providing ECSA-ESAf trade capacity of 15,000 TEU Non-core ports rotation: Singapore, Hong Kong, Xingang, Dalian, Qingdao, Busan, Shanghai, Hong Kong, Singapore ECSA ESAf calls: WB: - EB: Cape Town, Ngqura F.East ECSA rotation: Santos, Buenos Aires, Montevideo, Paranagua, Sao Francisco do Sul, Santos, Rio de Janeiro S.Af Remarks: ECSA trade capacity eastbound only to South Africa with wayport calls made there on the way to the Far East China Shipping, CMA CGM, CSAV SEAS 1 / Asia South America East Coast SEAS / ASAX 1 11 vessels (3/2/6)@ 5,700 TEU average, providing ECSA-ESAf trade capacity of 11,500 TEU Non-core ports rotation: Port Kelang, Hong Kong, Busan, Shanghai, Ningbo, Shenzhen (Yantian), Hong Kong, Port Kelang ECSA ESAf calls: WB: - EB: Durban F.East ECSA rotation: Santos, Montevideo, Buenos Aires, Rio Grande, Paranagua, Santos S.Af Remarks: ECSA trade capacity eastbound only to South Africa with wayport calls made there on the way to the Far East.

56 56 East Africa & Southern Africa Container Trades China Shipping, CMA CGM, CSAV SEAS 2 / SEAS 2 / ASAX 2 10 vessels (2/4/4)@ 4,300 TEU average, providing ECSA-ESAf trade capacity of 8,600 TEU Non-core ports rotation: Singapore, Hong Kong, Shanghai, Ningbo, Xiamen, Kaohsiung, Hong Kong, Shenzhen (Shekou), Port Kelang ECSA ESAf calls: WB: - EB: Ngqura F.East ECSA rotation: Rio de Janeiro, Santos, Paranagua, Itajai, Santos, Rio de Janeiro S.Af Remarks: ECSA trade capacity eastbound only to South Africa with wayport calls made there on the way to the Far East.

57 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 57 Intra-Africa regional services and operators Not covered in as much depth as the deepsea liner trades, the East Africa, Southern Africa and of importance here, the Indian Ocean Islands trades have a significant shortsea or intra regional seaboard capacity. This could be described as green water capacity as opposed to blue. There is a mixture of a few regional players [highlighted below in blue], some of whom have connections with larger liner groupings, as well as the local services of one major liner operator in particular Excluding that intra-esaf capacity that can be found within the deepsea blue water services as mentioned in July 2011 as identified 14, Dynamar has estimated that such intra, green water services could bring around another 308,000 TEU in trade capacity from approaching twenty (20) ships averaging 1,000 TEU. The largest operator in all measurements is MSC providing more than half the fleet in vessel numbers, nearly half of the identified services and ultimately 68% of that 308,000 TEU. CMA CGM (and Delmas) is also active but currently has one dedicated intra service, as identified, employing a single vessel and providing 6% of trade capacity although it has significant intra capacity through many of its other services. Although Maersk is a notable absence it utilises a combination of affiliated Ocean Africa Container Line (OACL) for littoral [coastal] connections and regional feeder specialist United Africa Feeder Line (UAFL) for Indian Ocean Islands connections. Both these two players have minor representation in the deep[er] sea trades with OACL operating a Southern Africa-Angola service and UAFL a Middle East-Indian Ocean Islands-East Africa link. They are also connected with larger groupings who have an even deeper-sea presence on the ESAf trades. OACL is 49% owned by Maersk group member Safmarine whilst UAFL was, in mid-2011, acquired by the Deutsche Afrika Linien and the Rantzau Group of which it is part. The final operator, also a regional company, is Mauritius Shipping Corporation. which operates two vessels between Mauritius and Madagascar, with occasional sailings to Durban. However only one of those ships, a small multipurpose unit, can carry containers in any number. A similar island based lifeline like service, this operated by Shearwater Shipping/ Seychelles Shipping. Between the Seychelles, Durban and Mombasa seems to have stopped after the only vessel on the service, a (converted) sea-going river vessel, was sold at auction in April 2010 having been drydocked in Durban since September the previous year. Table 20: Summary of main intra-eaf/saf container liner services Weekly Average Total Service Carriers Rotations vessel cap Trade Cap East Africa feeder MSC 1.0 1,800 79,700 Indian Ocean feeder 2 MSC ,900 Mozambique feeder 1 MSC 0.6 1,000 28,500 East Coast service Maersk [OACL] 0.5 1,200 26,600 West Coast schedule, sling 1 Maersk [OACL] 0.4 1,200 21,500 Indian Ocean feeder 1 MSC ,300 Indian Ocean feeder CMA CGM ,800 Mozambique feeder 2 MSC ,500 UAFL Quelimane Shuttle DAL ,300 Africa Coastal [part] MSC ,300 UAFL Moroni Shuttle DAL ,000 UAFL Island Express DAL ,400 Coraline, Service Tamatave Mauritius Shipping ,000 Totals 8.6 1, , Given the nature of feeder like and/ or shortsea operations, rotations can change quickly, vessels can be off-hired or brought in and even whole services can be set up, disbanded or altered substantially, all at apparently short notice.

58 58 East Africa & Southern Africa Container Trades Table 21: Service grid summary of intra-esaf liner services KE KM MG MU MZ RE SC ZA Service Vessel provider Total Vessels Ave. Capacity Frequency, days Mombasa Mutsamudu Moroni* Toamasina [Tamatave] Mahajanga (Majunga)* Antsiranana* Vohemar* Nosy Be* Tulear* Ehoala* Port Louis Beira Maputo Nacala Pemba* Quelimane* Port de Pointe Des Galets Port Victoria (Mahe) Tanga Cape Town Durban East London Port Elizabeth East Africa feeder MSC 4 1, East Coast service OACL 2 1, Mozambique feeder 1 MSC 1 1, Mozambique feeder 2 MSC Indian Ocean feeder 2 MSC Indian Ocean feeder CMA CGM Indian Ocean feeder CMA CGM Indian Ocean feeder 1 MSC UAFL Island Express DAL UAFL Quelimane Shuttle DAL Africa Coastal [part] MSC Coraline, Service Tamatave Mauritius Shipping UAFL Moroni Shuttle DAL , > Notes: Numbers against ports refer to calls per rotation and in that 0.5 will be once every other rotation or one-way [wayport] only, for example. Sub-totals are rounded. Where: KE = Kenya; KM = Cayman Islands; MG = Madagascar; MU = Mauritius; MZ = Mozabique; RE = Reunion; SC = Seychelles; TZ = Tanzania; ZA = South Africa Ports asterisked* appear only on these intra services - Where numbers corresponding to the intersection of ports [column] and services [row] relate to port calls per rotation. Above table summaries are as identified, main feeder/intra links only and as at time of data collection and research (July 2011).

59 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 59 Piracy Background Directly impacting many of the liner services calling East Africa and the Indian Ocean Islands is the issue of, primarily, Somalia based piracy. Whilst afflicting that country s southern coastline since around the end of the 1990s, it took around ten (10) for it to move north and gain worldwide notoriety. It is now based predominantly in the Northeast Somali region of Puntland, which counts both the Gulf of Aden to the north and the Indian Ocean to the east, these gangs are composed of former fisherman, former militiamen and those with technical knowledge regarding satellite phones, GPS and so on. Some place the rise of the piracy at illegal fishing depriving the local traditional method based fishing industry of their livelihood. Using their fishing vessels and small arms, therefore, they approached passing merchant vessels, boarded them (or attempted to do so) and effectively hijacked them. Despite the initial ransom demands of many millions of US Dollars being downsized, when they were paid they were still in the low millions. By 2008, when the year still had a couple of months left, one estimate was that around USD 17mn in ransom money had, in total, already been paid out. To a region bereft of opportunities, the attraction of earning big money could not be passed up. Since then, the problem has grown. The total cost, including naval operations, war-risk and insurance premiums, ransoms paid, extra shipping costs (re-routing) were estimated for 2010 to be between USD 7 billion and USD 12bn. The loss to the ESAf region from impacts upon trade, fishing and tourism losing was estimated to be some USD 420mn 15 & i. The military response Quite clearly the global community has had to respond, but despite looking impressive, it has not been wholly successful for a variety of reasons. These reasons are not the responsibility of this publication although a study of the ESAf region cannot be made without, at the least, mention and summary of the issue, the implications for (liner) shipping and responses from various parties. The European Union, for example, has placed a permanent Naval Force (EU NAVFOR) under Operation ATALANTA which was initially launched for a twelve month period in up to December Initiated in support of a number of UN Resolutions, it is currently under the authority of UN Security Council Resolution 1950 of 2010 and the operation has now been extended, twice, to last until December Some thirteen (13) EU members, plus Norway, have contributed vessels to the operation which usually deploys up to ten (10) warships, two (2) auxiliaries and four (4) Maritime Reconnaissance Aircraft at any one time. These are intended to cover an operational area of some 4.0mn sq.km. Whilst the operations and aims of EU NAVFOR/Op ATALANTA are very much Somalia (coast) focussed and geared towards assisting the World Food Programme s chartered ships as well as protecting merchant vessels carrying supplies for the African Union Mission in Somalia (AMISOM Peace Support Operations), it does also: protect vulnerable shipping and [endeavour] to ensure that legitimate maritime traffic within the region continues to receive the best protection possible ii. Whilst there have been successes the limited fleet (flotilla) available and the nature of the mission may indeed mean that other merchant vessels are not close enough to receive protection from EU NAVFOR at the time may well be needed. 15 USD 414mn to Kenya, USD 6mn to Seychelles.

60 60 East Africa & Southern Africa Container Trades In that regard the presence of others is undoubtedly helpful and reassuring. One major presence is that of Combined Task Force 151 (CTF 151), one of three such which are operated by the 25 nation strong Combined Maritime Force based in Bahrain. Established in January 2009 also operating under UN Security Council Resolutions CTF 151 s mission is specifically anti-piracy and includes protecting the maritime vessels of any nationality and securing freedom of navigation in the Gulf of Aden and Somali Basin including which are patrols along the Recommended Transit Corridor in the Gulf of Aden (as does EU NAVFOR). Reflecting the multinational element of its composition, CTF 151 has also been commanded by New Zealand, South Korea, Turkey and US officers and deploys vessels from many other nations. Photograph 1: Converted Container Ship Bunga Mas Six As well as these multinational approaches, several nations also deploy independently. The Indian Navy has been conducting anti piracy/escort operations along the Recommended Transit Corridor since October For its part, the Royal Malaysian Navy has joined with MSC Bhd. In early they launched the Naval Auxiliary Ship Bunga Mas Six, a converted 700 TEU container ship owned by MISC that will undertake merchant ship escort operations in the Gulf of Aden joining the earlier 2009-launched and similarly converted Navy Auxiliary Bunga Mas Lima. Not quite a Q Ship of World War II ilk, but pretty close painted navy grey, these ships are quite clearly not your standard merchant ships. Alongside all these, other navies operating in the region include Russia, China and Japan. The industry response best practice and self help Yet, despite all this hardware, the scourge continues and apparently unabated. Over 2010 the ICC s International Maritime Bureau reported some 440 attacks were carried out on merchant vessels, worldwide (2009: 406), of which fifty-one (51) were successful in that the vessel itself was hijacked (2009: 49). Of those figures, two hundred and eighteen (218) attacks and some forty-seven (47) hijacks were said to be attributable to Somalia based pirates (2009: 217 and 47 respectively). Even more concerning, the pirates have been getting bolder in the vessels they have targeted and the distance they are prepared to cover, this being extended through the judicious use of so-called mother ships from which skiffs or similar can be launched (and presumably recovered to). This extended range was demonstrated amply fairly early on in 2011 when the 366m long, 156,000-dwt (13,800 TEU) MSC Eva, a not insubstantial vessel therefore, was attacked some 1,000 nautical miles away from the Somali coastline. A little earlier, at the end of December 2010, a tanker (of close to 113,000-dwt) and dry bulker were attacked 950 miles south of Dar Es Salaam. For all the current presence of naval assets in the area, for whatever reason(s) neither the political will for nor the capability to be able to undertake even stronger direct action appears to be present. This is a poor combination even before being confronted with the practicalities, i.e. perceived difficulties, of concerted action against these hijackers. On the one level, Somalia has a coastline of around 3,000km. Aside from the perimeter to be covered, a blockade, as one suggestion, intended to keep a large number of individual and small ships in is a very different proposition to keeping much larger cargo and military ships out as in a more conventional situation. One only need to look at the unfortunate events in parts of the Mediterranean now [writing July/] to see more conventional blockades or interceptions. In the meantime, the mercantile marine can, alongside whatever protection is offered by the various navies implement Best Management Practices. These are known as BMP 3 specifically for the Indian Ocean region. These range from planning and coordination such as liaison/communication with the (naval) Maritime Security

61 CONTAINER SHIPPING SERVICES AND TRADE OVERVIEWS 61 Centre Horn of Africa and UK Maritime Trade Operations (in Dubai), through to practical measures to fend off an attack (enhanced watchkeeping, evasive manoeuvring, use of water sprays), or if this is unsuccessful, the adoption of protective measures as barbed wire. And even if this does not work and the ship is boarded, the use of safe muster points or the more secure citadels. Whilst employing additional security guards is described as discretionary under BMP3, the use of armed guards is not recommended. Even so and undoubtedly in lieu of official armed protection some have still turned to (private) security companies to provide just this option. However on more than one occasion and at extreme ends of the African continent (Eritrea and South Africa as examples) the presence of either firearms or ammunition or those guards connected with them have caused significant problems with local law enforcement and authorities when vessels have docked at port. A little more ambitiously in size and scale there has even been a call for a privately, but still maritime industry, funded flotilla of small ships to provide escort capabilities and working alongside the navies iii. Other measures can be and have been undertaken such as avoiding the area as much as possible. Salalah on Oman s Indian Ocean coast was reportedly swapped for Khor Fakkan in the Persian Gulf by CMA CGM on its Mascareignes (Indian Subcontinent/Middle East-Indian Ocean Islands) service early in 2011 for reasons connected with piracy. Even more extreme, in the first half of 2009 there were some services that were rerouted around the Cape of Good Hope rather than transit the Gulf of Aden (and Red Sea), although this was a temporary measure and in some sceptical eyes helped soak up some capacity in a period of over-supply. Finally, at the end of previous October, the three largest liner groupings, Maersk, MSC and CMA CGM came together in attempt to reduce the risks of pirate attacks through exchanging information on safety measures, policies and procedures. A laudable effort no doubt. Yet but one cannot escape the impression that overall, the responses to date are fragmentary and when faced with the legal reality as in what to do with those pirates who are captured apparently confused.

62 62 East Africa & Southern Africa Container Trades CONTAINER LINER CARRIERS Summary There are twenty-two (22) different carriers or carrier groupings that provide container liner shipping services to and from East & Southern Africa, including Indian Ocean Islands, in their capacities as vessel operators and providers. When affiliated or associated companies such as Delmas (CMA CGM), Gold Star Line (ZIM), Safmarine (Maersk group), are included, this could grow. However, for ease of reference we have portrayed such related companies within the group whole. There are degrees of local or trade operational independence on the part of these affiliates, with, in particular, Gold Star Line and, for the moment, UAFL (Deutsche Afrika-Linien) still appearing in the marketplace, at the least, as fully independent operations. The same could be said of multipurpose operator Galborg although the vessels that it uses are most usually cascaded from the service of its bigger affiliate MACS. For the rest, in particular Delmas and Safmarine, whilst on occasions perhaps being the formal and sole vessel Table 22: Summary of all vessel operating carriers, ESAf trades Total Average Total Carrier Vessels vessel cap vessel cap Trade Cap China Shipping 9 34,000 3,800 18,000 CMA CGM [incl. Delmas] ,000 2, ,000 Coscon 3 10,000 3,400 57,000 CSAL 3 2, ,000 CSAV 25 93,000 3, ,000 DAL [incl. UAFL] 5 11,000 2,200 84,000 Emirates Shipping 6 11,000 1,800 91,000 Evergreen 7 18,000 2, ,000 Hamburg Süd 5 24,000 4,700 26,000 "K" Line 7 26,000 3, ,000 Hapag-Lloyd 1 2,000 2,500 2,000 MACS [incl. Galborg] 13 20,000 1,600 51,000 Maersk [incl. Safmarine & OACL] ,000 2,700 1,201,000 Messina 4 6,000 1,600 16,000 MOL 24 87,000 3, ,000 MSC ,000 3, ,000 NileDutch 9 23,000 2,600 23,000 NYK 3 8,000 2,700 7,000 PIL 44 80,000 1, ,000 Wan Hai 2 5,000 2,300 34,000 X-Press [Sea Consortium] 1 2,000 2,100 16,000 ZIM [Gold Star] 11 23,000 2,100 17,000 Totals ,000 2,800 3,743,000 providers to some services, by and large their service packages can be easily accessed by/ through their respective lead group companies and vice versa to the extent that in terms of service provision to and from ESAf, there is a blurring of responsibilities arguably to the point of one being synonymous with the other. This is most definitely the case for Sea Consortium which is often used as the collective noun for its formal lead group company X-Press. In total, all carriers combined to deploy some three hundred and fifty-eight (358) container carrying vessels to and from the region. In total these could carry some 998,000 containers (TEU) leaving a relatively small average of 2,800 TEU per ship deployed 16. This average does vary depending upon the other end trade, the highest being 4,800 TEU to/from the East Coast South America (ECSA) and the lowest being 2,100 TEU to/from West Africa. Whilst the return from the ECSA trade may appear to be unexpected, this comes from a few services only that are all wayport links and are actually, and fully, but a small selection of the numerous Far East-ECSA services currently operating. This curiosity aside, it is in fact the Far East that provides the largest average vessel capacity for a trade including dedicated (Far East-ESAf) services, this being 3,100 TEU. 16 By comparison, in our recent mid-2011 trades report on East Coast South America, the average vessel size was around 1,000 TEU larger.

63 CONTAINER LINER CARRIERS 63 Local, regional representation Before progressing to the trade related carrier profiles, there are no independent and internationally operating and locally, ESAf country, controlled carriers profiled below or indeed present as vessel providers to any of the services. This is only very recent as prior to mid-2011 United Africa Feeder Lines of Mauritius, which despite its Feeder name qualifies as a deepsea operator through its South Africa-Indian Ocean-Middle East liner service, was the exception to prove the rule. However it now forms part of the Rantzau group whose container liner activities are under the Deutsche Afrika-Linien banner (and reflected as such in these pages) and who has been presented as the actual purchaser of UAFL. In the latter half of the 2000s and up to 2010 there were, of course, the three South Africa based and backed attempts to get a deepsea liner service up and running to/from North Europe, in order SALCS, SAILS and MBG Shipping. However, even SAILS, which lasted longest with its service running from early 2006 to late 2008, was, as of October 2007, majority owned by Lonrho of London, UK before being placed in liquidation by its new parent around a year later. The above aside, there is still liner representation and heritage in South Africa. Safmarine, headquartered in Belgium and ultimately part of Maersk, has its origins in the South African Marine Corporation established by a group American shipowners and South African industrialists in Although formally majority owned by the US side for a while, between 1959 and 1983 it was owned by the South African Development Corporation, Industrial Development Corporation as it had become at the end of that spell. A public listing in Johannesburg followed shortly afterwards and in fact in by the mid-1990s it had acquired another liner operator, CMB-T of Belgium, this leading to the registration of Safmarine Container Lines NV, to give its full name, in Belgium. However, by the time the decade was out, Safmarine had become part of the greater Maersk group and although there is undoubted integration with what is now Maersk Line some twelve (12) years down the line, it is a distinct brand retaining commercial and a noticeable degree of operational independence and which itself has a number of interests (companies, mostly agencies) in Southern Africa. Included in those is the 2001 established Ocean Africa Container Lines (Pty) Ltd [OACL] which is a 51/49 joint venture between Safmarine Container Lines and Grindrod Limited respectively. Grindrod is a South Africa based shipping, logistics and port facilities operator which concentrates in particular on the Southern Africa region. OACL aside, Grindrod arguably the only regionally based and registered concern that could perhaps be in a position to start up deep(er) sea liner operations has most of its shipping activities in the dry bulk, chemical and product tanker segments. For all the lack of substantial liner shipping representation though, perhaps a quick mention should be made that nearly one in five of every container offered by the box leasing companies is South Africa controlled. Textainer, the world s largest container management and leasing company, is majority owned by Trencor of South Africa. Finally, and aware of the South Africa focus of the above, there is Kenya National Shipping Line (KNSL). Despite its name, and it being established in the late 1980s to be the national carrier of Kenya, it seems to have never owned nor operated vessels, acting purely therefore as a non-vessel operating common carrier. Whilst the government maintained a majority stake, at least and for a while, in 1997 its shareholding was reorganised to include, indirectly, MSC (Mediterranean Shipping Company) 17, based in Switzerland. Indeed, KNSL s services are, and have been for a long while, through slots from MSC, its current schedules reflecting port pair connections from Mombasa to Salalah or Durban. 17 Whilst long believed to actually be the case, other than through anecdotal means, confirmation was never forthcoming. However, KNSL does now publish MSC as being [brought] into the fold a[s] strategic partner through a third company.

64 64 East Africa & Southern Africa Container Trades Trade related carrier profiles China Shipping China Shipping Container Lines Co. Ltd. Total ESAf annual trade capacity, TEU: 18,000 - E.Coast S.Am 4,600 - Far East 9,200 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa 4,600 Vessels deployed on ESAf services: 9 Nominal capacity on ESAf services, TEU: 34,000 Allocation of whole fleet to ESAf: 6% Allocation of operated capacity to ESAf, TEU: 7% Differences may occur due to rounding Established in 1997 to consolidate the container liner shipping interests of the State-owned China Shipping Group (CSG), it listed on the Hong Kong exchange only seven years later although it is still controlled by CSG. Having entered the international long haul liner fairly soon after it was formed, its services and operations expanded at breathtaking speed over the following decade. Its vessel deployment on services to/from the ESAf region is entirely through wayport calls made in South Africa in its capacity as a member of three Far East based joint services. Two, what China Shipping calls the SEAS 1 and 2, link with East Coast South America, the other, the WAFCO [not China Shipping s name], links with West Africa. CMA CGM SA Total ESAf annual trade capacity, TEU: 299,000 - E.Coast S.Am 5,400 - Far East 103,900 - ME/ISC 168,300 - North Am. - - N.Eur/Med - - West Africa 21,700 Vessels deployed on ESAf services: 49 Nominal capacity on ESAf services, TEU: 120,000 Allocation of whole fleet to ESAf: 13% Allocation of operated capacity to ESAf, TEU: 9% Differences may occur due to rounding The current CMA CGM dates from the formal merger of the two separate CMA and CGM entities in CGM was the state-owned line whose antecedents, through mergers, dated back to the 1800s. The privately-owned CMA was founded in 1977 by Mr. Jacques Saadé who is the CMA CGM group s Chairman and CEO. The group had to undergo financial restructuring over and also required the effective injection of USD 500mn in equity from an external Turkish investor to help stabilise its financial position over and help to establish a firmer foundation going forward. CMA CGM SA is the holding and the head company for a group active in container shipping, multimodal (rail and inland waterway transport and warehousing), services (freight forwarding) and tourism (cruise liner and travel agency). Liner operations are by far the group s most important activity. Together with acquired subsidiaries and affiliates, for example ANL Container Line, Cheng Lie Navigation and MacAndrews, it operates a multi-brand policy and is, all told, the third largest container liner operator in the world. By nature a strong East-West player, especially Europe-Far East, its sub-saharan Africa related activities were undoubtedly boosted by the acquisition of Delmas in Alongside Delmas came the UK based OT Africa Line (OTAL) who concentrated on the West Africa trades. There was already a deal of operational/service integration between the two, considered opinion, and the intention, was that OTAL would be phased out as a brand. However, and for what reason, it was maintained until mid Although no longer OTAL, the company still remains as Delmas (UK). CMA CGM, with or without Delmas in a formal role, is present on a range of ESAF trades and is in fact the third largest provider of trade capacity, albeit this being relatively low at 8% of the total. Its group services cover ESAf connecting trades that are very much Indian Ocean and Far East orientated. Its Atlantic Ocean based presence is limited to it providing vessels to the SEAS 1 and SEAS 2 joint links between the Far East-South Africa-East Coast South America (ECSA), and three group standalone operations that run up to West Africa, yet two of those originate from the Far East..

65 CONTAINER LINER CARRIERS 65 Delmas With a history that goes back to the 1860s, in 2006 Delmas, then controlled by the substantial Bolloré concern which has extensive interests in Francophone [French language] Africa, was sold to CMA CGM. Concentrating upon these particular Africa trades it was itself one of the 25 largest liner operations by capacity and at the end of 2010 was still operating around 30 ships of the CMA CGM whole. Whilst joining with its parent on a number of the ESAf services, the West Feeder between Walvis Bay, Namibia and two ports in West Africa does appear to be the sole Delmas only operated loop. Coscon (COSCO Container Lines Co. Ltd.) Total ESAf annual trade capacity, TEU: 57,000 - E.Coast S.Am - - Far East 59,600 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa - Vessels deployed on ESAf services: 3 Nominal capacity on ESAf services, TEU: 10,000 Allocation of whole fleet to ESAf: 2% Allocation of operated capacity to ESAf, TEU: 2% Differences may occur due to rounding Alike its China Shipping compatriot, Coscon was established in 1997 following a merger of the State-owned China Ocean Shipping Group Company s (COSCO) container divisions. It now forms part of the Hong Kong listed (2007) China COSCO Holdings whose interests also include dry bulk shipping as well as container leasing and container terminals (Cosco Pacific). Coscon s current service provision to/from the ESAf region is entirely through one joint service with Taiwan based neighbour Evergreen. This service, the FAX, is a Far East-South Africa trade dedicated link. Whilst ostensibly a curio that mainland China Coscon co-operates with offshore Taiwan Evergreen, the two have been working together since at least 1999, when times were very different, when they came together on a Far East-ECSA service and along which they still work together (no South Africa wayport dip in/out though). CSAL Canada States Africa Line Total ESAf annual trade capacity, TEU: 5,000 - E.Coast S.Am - - Far East - - ME/ISC - - North Am. 5,100 - N.Eur/Med - - West Africa - Vessels deployed on ESAf services: 3 Nominal capacity on ESAf services, TEU: 2,000 Allocation of whole fleet to ESAf: 100% Allocation of operated capacity to ESAf, TEU: 100% Differences may occur due to rounding CSAL is a privately owned company registered and based in Montreal, Canada that started its sole North America- South Africa liner service in early It is affiliated with CIS Navigation (CISN), also of Canada, and there is a further connection of sorts believed with Atlantic Ro-Ro Carrier (ARRC) in that CISN is marketed as providing financial and commercial management of the ARRC service, a Transatlantic multipurpose-ro/ro link (also with Atlantic named vessels as with CSAL). The CSAL service is one of only three that provides a direct connection to/from North America. CSAL deploys three Astrakhan type vessels, which although now starting to get on in years, just post-date the Soviet Union era from where their design originates. Versatile and true multipurpose units they are geared (5x 35 tonnes) tweendeckers (4 holds), have a stern ramp of 25 tonnes and capacity for over 240 cars. As well as more usual calls to Durban and Cape Town noteworthy is that the service calls the bulkier port of Richards Bay too. CSAV - Compañia Sud Americána de Vapores S.A. Total ESAf annual trade capacity, TEU: 160,000 - E.Coast S.Am 10,100 - Far East 23,200 - ME/ISC 114,100 - North Am. - - N.Eur/Med - - West Africa 13,000 Vessels deployed on ESAf services: 25 Nominal capacity on ESAf services, TEU: 93,000 Allocation of whole fleet to ESAf: 19% Allocation of operated capacity to ESAf, TEU: 17% Differences may occur due to rounding Compañia Sud Americána de Vapores was formed in 1872 after a merger of two existing companies. The company and group which it now heads up required financial restructuring and especially creditors understanding, during the crisis years. It has subsequently undergone a range of fund raising and equity increasing initiatives, the

66 66 East Africa & Southern Africa Container Trades combination of all these measures powering remarkable fleet and service growth since end-2009 which has settled down in 2011 to the extent that CSAV is now, arguably, retrenching somewhat. Although publicly listed, early 2011 saw it change control from the Claro family to the very well endowed Luksic family who in turn control substantial assets and groupings elsewhere. They now have an equal shareholding to the Claro family, effectively, but hold the top position within CSAV. Whilst subsidiary CSAV Norasia would appear to be more suited to the Indian Ocean and Africa trades, it providing, essentially, the non-latin America liner services, ESAf service provision still falls under the Chile offices so to speak. Principal amongst these offerings is the now trade dedicated Middle East-South Africa Marco Polo which provides 71% of CSAV trade capacity here. Originally a novel Middle East-ECSA service that called South Africa on the way, it was pruned back to its current form in mid The remaining links are indeed through wayport connections from the Far East-West Africa New Discovery and the joint Far East-ECSA ASAX/SEAS 1 and 2. DAL DAL Deutsche Afrika-Linien GmbH & Co KG Total ESAf annual trade capacity, TEU: 84,000 - E.Coast S.Am - - Far East - - ME/ISC 44,300 - North Am. - - N.Eur/Med 39,900 - West Africa - Vessels deployed on ESAf services: 5 Nominal capacity on ESAf services, TEU: 11,000 Allocation of whole fleet to ESAf: 63% Allocation of operated capacity to ESAf, TEU: 89% Differences may occur due to rounding Although the current company was established in 1959, DAL s origins go back at least another eighteen (18) years which is when it was taken over by John T Essberger and his liquid bulk shipping company. Nowadays, DAL and JTE, as it is called, provide the shipping activities of the Rantzau group, the current familial descendants of the original Mr. Essberger. The dry and liner/ liquid and tramping separation of the two companies remains to this day. As its name suggests, DAL has always concentrated on the North Europe-Africa trades. It was a founder member of the SAECS consortium which is still in existence and operating along that route. Currently DAL provides two vessels, one of 4,500 TEU to the main service and a smaller one of around 1,500 TEU on the seasonal Reefer Express loop. It has an established presence on the Indian Ocean Islands trades having entered this route through its 1981 acquisition of Scandinavian East Africa Line SEAL. At this moment in time DAL s service provision is through southbound slots from MSC on its North Europe-Australia service. Return trips are via transhipment onto the SAECS service in South Africa. The first part of that journey, from Indian Ocean Islands to South Africa will be made a lot easier with the acquisition by the Rantzau group, apparently through DAL, of United Africa Feeder Lines in mid UAFL United Africa Feeder Line Ltd Established in 2005 and based and since 2008 registered in Mauritius 18, UAFL developed into, arguably, the main common feeder operator for the Indian Ocean Islands and East Africa; Maersk, for example, makes extensive use of its service provision. Operating a fleet of around seven (7) vessels of 700-1,700 TEU it currently operates one deepsea service between East Africa-Indian Ocean-Karachi (Pakistan) and another three connecting two points of either East Africa-South Africa-Indian Ocean Islands. 18 The previous jurisdiction was Kenya

67 CONTAINER LINER CARRIERS 67 Emirates Emirates Shipping Line DMCEST Total ESAf ESAf annual annual trade trade capacity, capacity, TEU: TEU: 91,000 26,000 - E.Coast - E.Coast S.Am S.Am - 13,000 - Far East 33,400 - Far East 13,000 - ME/ISC 57,700 - North - Am. ME/ISC N.Eur/Med - North Am West - Africa N.Eur/Med - - Vessels deployed on ESAf services: - West Africa 6 - Nominal capacity on ESAf services, TEU: 11,000 Ves sels deployed on ESAf services: 5 Allocation of whole fleet to ESAf: 40% Nominal capacity on ESAf s ervices, TEU: 24,000 Allocation of operated capacity to ESAf, TEU: 30% Allocation Differences of whole may occur fleet due to to ESAf: rounding 7% Allocation of operated capacity to ESAf, TEU: 11% Differences may occur due to rounding Emirates was established in 2005 in Dubai, UAE. It has though, split headquarters in both Dubai and Hong Kong. It is perhaps no coincidence that the person who essentially and initially set the company up had previously left the Hong Kong based CSAV Norasia where he was CEO to take up that same position at Emirates. At the same time the then new Emirates counted a number of former Norasia managers amongst their number. The ownership of Emirates has never been fully clarified and since its start it has not always been plain sailing as the original Chairman/CEO left after around four years and there was even a short period with the head of TS Lines as Chairman for a little while. It may well be that its backers, some of whom at least are believed to be connected to a multi-billion dirham retail and telecommunications operation, do indeed have patience and deep pockets. The company s two ESAf services are, interestingly, standalone. They have a very much Indian Ocean aspect with both serving East Africa only and connecting with the Indian Subcontinent and/or Far East. Total ESAf annual trade capacity, TEU: 103,000 - E.Coast S.Am - - Far East 103,400 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa - Vessels deployed on ESAf services: 7 Nominal capacity on ESAf services, TEU: 18,000 Allocation of whole fleet to ESAf: 4% Allocation of operated capacity to ESAf, TEU: 3% Differences may occur due to rounding Total ESAf annual tra de capa city, TEU: 2,000 - E.Coast S.Am - - Far East 1,100 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa 1,100 Vessels deployed on ESAf services: 1 Nominal capacity on ESAf services, TEU: 2,000 Allocation of whole fleet to ECSA: >1% Allocation of operated capa city to ESAf, TEU: >1% Evergreen - Evergreen Line / Evergreen Marine Corporation Ltd Evergreen Line is the 2007 combined brand name for the liner operations of a number of Evergreen group companies, most notably Evergreen Marine of Taiwan, Hatsu Marine (UK) and Italia Marittima (Italy). Effectively, the shipping and logistics arms of the entire Evergreen group are headed up by the publicly listed (Taiwan) Evergreen Marine whose own history goes back to In 1999 Evergreen was joined by Coscon as a vessel partner on an existing Evergreen Far East-ECSA service, a situation still existing today through the [New] ESA service, as in East Coast South America-South Africa-Asia, although South Africa ports were removed from the schedule in Evergreen s current service provision comes from it providing vessels to two joint services from the Far East. One, FAX, is with Coscon and serves South Africa. The other, AEF, is with MOL, Wan Hai and X-Press (Sea Consortium) and serves East Africa. In July 2011 it started taking slots from MOL s Southeast Asia-East/South Africa MZX service. Hamburg Süd Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG Hamburg Südamerikanische Dampschifffahrtsgesellschaft, whose name translated into English reads Hamburg South America Steamship Company, is by nature a North-South liner operator and within that, as its name suggests, is focussed on the South America liner trades. Indeed, it is a Far East-South Africa-ECSA service that gives this acquisitive company, part of the substantial Dr. August Oetker KG group since 1952 (as in Dr. Oetker the (processed) foodstuffs company), its sole service representation in the trades under study. This is through the

68 68 East Africa & Southern Africa Container Trades recently, mid-2011, revised New Good Hope two loop operation it runs jointly with Maersk, loop 2 being the link that includes the Durban and Port Elizabeth wayport calls. Hapag-Lloyd Aktiengesellschaft Total ESAf annual trade capacity, TEU: 2,000 - E.Coast S.Am - - Far East 1,100 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa 1,100 Vessels deployed on ESAf services: 1 Nominal capacity on ESAf services, TEU: 2,000 Allocation of whole fleet to ESAf: >1% Allocation of operated capacity to ESAf, TEU: >1% Differences may occur due to rounding too distant future. Established in its current legal form in 2006, Hapag-Lloyd AG is in fact the latest incarnation of a series of companies with that name that date back to 1970 when two wellestablished German shipping lines whose own histories dated back to the mid-1800s merged. Hapag-Lloyd is now jointly owned by TUI AG, the previous sole owner, and the Hamburg based Albert Ballin consortium which indirectly owns a majority. There is an intention, at the least, for TUI to sell more of its stock in some form or another in the not As a member of the Grand Alliance, Hapag-Lloyd has a substantial, and traditional, East-West presence. However, as befits one of the five largest liner companies in the world it also has a significant North-South portfolio. This would not appear to stretch to the Southern and East Africa/Indian Ocean Islands region as a vessel operator: in virtually all related measurements, Hapag-Lloyd is the smallest operator. Its sole direct vessel presence and trade capacity provision is through it supplying a ship to the joint WSX/WAFCO between the Far East-Durban-West Africa link, its partners in this being China Shipping and K Line. K Line - Kawasaki Kisen Kaisha, Ltd Total ESAf annual trade capacity, TEU: 138,000 - E.Coast S.Am - - Far East 135,200 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa 2,300 Vessels deployed on ESAf services: 7 Nominal capacity on ESAf services, TEU: 26,000 Allocation of whole fleet to ESAf: 9% Allocation of operated capacity to ESAf, TEU: 8% Differences may occur due to rounding Established in Japan in 1919 to operate ships built by the Kawasaki shipyards, the publicly listed K Line is one of the so-called big three Japanese shipping conglomerates and is active in a variety of shipping trades and sectors, not only container liners. It is also a member of the East-West Green Alliance. It has a not unreasonable presence on the ESAf trades in terms of trade capacity (seventh, 7 th ), this coming from it providing vessels to two joint services. One, this with Hapag-Lloyd, is actually a Far East-West Africa link with South Africa wayport calls. However, close to 98% of its overall trade capacity comes from its contribution to the joint Far East-South Africa ASA with PIL the other partner. MACS Maritime Carrier Shipping Gmbh & Co KG Total ESAf annual trade capacity, TEU: 51,000 - E.Coast S.Am - - Far East - - ME/ISC - - North Am. 10,000 - N.Eur/Med 41,500 - West Africa - Vessels deployed on ESAf services: 13 Nominal capacity on ESAf services, TEU: 20,000 Allocation of whole fleet to ESAf: 87% Allocation of operated capacity to ESAf, TEU: 94% Differences may occur due to rounding With origins going back to the company established in 1970 by Mr. Felix Scheder-Bieschin Sr, it opened what is now its signature multipurpose liner service between North Europe and Southern Africa nine years later and acutally absorbed a competing liner service, the AESL of Steenkook and Handelsvereeniging, four years after that. Now led by two of the founder s sons, one located in Hamburg, the other in Cape Town, it continues to operate its service with varying numbers of owned or chartered lifton/lift-off multipurpose carriers of 30-35,000-dwt and 1,800 TEU. One or two smaller units of up to 10,000-

69 CONTAINER LINER CARRIERS 69 dwt provide a Southern Africa-East Africa coastal link that used to be a separate service, MEAS, but was incorporated into the MACS main link at the end of Galborg Galborg Pte Ltd In 1998, through their investment holding company (which also owns MACS), the Scheder-Bieschin family joined with Dannebrog to form Gulf Africa Line AG providing a multipurpose liner service between the US/Mexico Gulf and Southern Africa. The succeeding company, Galborg, established in 2005, is two thirds owned by the Scheder-Bieschin family s holding with Dannebrog holding the rest. The Galborg service is still operating along the same trade lane and most usually takes on tonnage cascaded from the MACS main service. Maersk A.P. Møller - Mærsk A/S Total ESAf annual trade capacity, TEU: 1,201,000 - E.Coast S.Am 13,600 - Far East 485,500 - ME/ISC 334,000 - North Am. 38,200 - N.Eur/Med 256,400 - West Africa 73,200 Vessels deployed on ESAf services: 82 Nominal capacity on ESAf services, TEU: 219,000 Allocation of whole fleet to ESAf: 13% Allocation of operated capacity to ESAf, TEU: 9% Differences may occur due to rounding The publicly listed Maersk Group of Denmark is, when consolidating its various brands and carriers, the largest liner shipping concern in the world with a truly global coverage to match. The largest component of these is Maersk Line, this style being launched in However, it has undergone some changes with the group acquisition of Sea-Land (1999) and P&O Nedlloyd (2005), these now absorbed into what is now the Maersk Line brand, being the most spectacular. Just before Maersk took control of Sea-Land it had also bought the then Belgian based but South African grounded Safmarine. Through this company, the Maersk group also has a majority stake in the South Africa based Ocean Africa Container Lines. All together, Maersk+Safmarine+OACL combine to be the largest single provider of vessels (thirty-three (33) more than the next largest), floating nominal capacity (47,000 TEU more) and trade capacity (322,000 TEU more) of all. Trade capacity share exceeds 32% and it is the only grouping with a vessel operating presence on all six (6) ESAf related trades. Safmarine Safmarine, now of Belgium, has its origins in the mid-1940s and, as its name suggests, in South Africa albeit initially with American ownership. Even so, ownership by South African concerns dominated its first fifty (50) years or so until 1999 since when it has been part of the Maersk group. Whilst an independent operation within the Maersk group it co-operates closely with Maersk Line, often acting as a slot charterer on Maersk Line services, including cross-trades, and providing tonnage on some services in either a joint form with Maersk Line or even on its own. Its main focus has traditionally been on Africa liner trades and it is a significant contributor to the Maersk group ESAf provision. Those identified as being Safmarine only (i.e. not marketed by Maersk Line although it would most likely have access if necessary) include the Mashariki Express (Far East-East Africa), Masiika Express, Mombasa Express, Indian Ocean Service (all Middle East/Ind.Subcont-East Africa) and two services connecting Southern with West Africa. It is also a member of and vessel provider to amongst others the long-standing SAECS service with North Europe. Ocean Africa Container Line (OACL) Although claiming origins that go back to the 1920s, OACL is, in its current form, a 2001 established joint venture held 51/49 by Safmarine and Grindrod Ltd of South Africa respectively. Its service provision consists of two loops that start/end in South Africa and run up the African coastline to 1) West Africa and 2) East Africa. For the purposes of this study, the latter link is counted as an intra- service.

70 70 East Africa & Southern Africa Container Trades Messina Ignazio Messina & C. SpA Total ESAf annual trade capacity, TEU: 16,000 - E.Coast S.Am - - Far East - - ME/ISC 2,000 - North Am. - - N.Eur/Med 14,200 - West Africa - Vessels deployed on ESAf services: 4 Nominal capacity on ESAf services, TEU: 6,000 Allocation of whole fleet to ESAf: 24% Allocation of operated capacity to ESAf, TEU: 25% Differences may occur due to rounding With origins going back to the early 1920s, Italy s Messina Line, as it is more commonly known, is an increasing rarity in that it is a deepsea/intercontinental liner operator of Roll-on/Roll-off tonnage that are not pure car carriers or similar. Whilst this type of vessel has always been seen as a viable option for infrastructurally under-developed regions such as Africa, the Ro/Ro community has shrunk even further with NileDutch, a West Africa specialist, turning fully to containers and Lo/Lo. It has always been an interesting distinction that compatriot Grimaldi coincidentally the world s largest civilian operator of non-pure car carrying Ro/Ro vessels has concentrated on deepsea trades within and to the west of the Mediterranean and that Messina, with one service exception, has been seen more to the east of the Home Sea. To illustrate the point, Messina s trade capacity in the ESAf trade is provided by a single Mediterranean-East Africa link that calls at the Red Sea port of Jeddah on the way to provide the Middle East aspect. MOL - Mitsui OSK Lines, Ltd Total ESAf annual trade capacity, TEU: 233,000 - E.Coast S.Am 15,000 - Far East 115,600 - ME/ISC - - North Am. - - N.Eur/Med 74,000 - West Africa 28,800 Vessels deployed on ESAf services: 24 Nominal capacity on ESAf services, TEU: 87,000 Allocation of whole fleet to ESAf: 24% Allocation of operated capacity to ESAf, TEU: 21% Differences may occur due to rounding MOL is the 1964 result of a merger between two other Japanese shipping company whose own origins go back to 1884 (OSK Line) and 1942 (Mitsui Steamship Co). It too is one of the three major Japanese conglomerates. Arguably it has always been more of a North-South player than its compatriots, its membership of the East-West New World Alliance notwithstanding. It has built up a significant Africa trades presence even before it took on P&O Nedlloyd s place within the SAECS North Europe- Southern Africa service when that company was swallowed up by Maersk (in fact a sale of PONL s share in the then consortium was a condition of the whole PONL/Maersk deal). It now has nearly a quarter of its floating capacity and over a fifth of its fleet deployed on services calling the ESAf region to which can be added a few of pure West Africa links. Most of those actually connect with North Europe/Mediterranean although one, the AOS, is a Southern Africa- West Africa dedicated link, one of the few and why along that particular route MOL is the third largest provider of trade capacity. For the rest, most of its service provision is to/from the Far East through a dedicated and a joint service plus one that calls South Africa en route for ECSA. MSC MSC Mediterranean Shipping Company S.A. Total ESAf annual trade capacity, TEU: 879,000 - E.Coast S.Am - - Far East 249,500 - ME/ISC 230,600 - North Am. 62,600 - N.Eur/Med 298,200 - West Africa 38,600 Vessels deployed on ESAf services: 45 Nominal capacity on ESAf services, TEU: 172,000 Allocation of whole fleet to ESAf: 10% Allocation of operated capacity to ESAf, TEU: 9% Differences may occur due to rounding Privately-owned 1970 established MSC is very much controlled by its founder, Captain (Mr.) Gianluigi Aponte and his immediate family. Historically linked with East Africa, its very first liner service was launched to there in 1973 connecting with the Mediterranean via the Cape of Good Hope. From such small beginnings, and remarkable for such a young company, it is the now second largest container liner operation in the world by capacity deployed. It also has extensive interests in cruise shipping,

71 CONTAINER LINER CARRIERS 71 container terminals and other related businesses. Similar to its rapid global development, in terms of vessels, combined container carrying capacity and trade capacity, it is, for example, the largest operator on the ECSA trades 19. This is even without it operating a Far East-South America service and which helps explain why here, for ESAf, it has no ECSA link as such services often incorporate South African wayport calls. For the rest though, MSC is very well represented even on the North Europe trade where it manages to sustain a standalone operation in competition which some say is still not enough to that of SAECS. Whilst most usually a loner, as this example shows, where economic and trading circumstances dictate it will co-operate but then only with similarly sized or minded companies. No surprise then that the numbers one and two (1 & 2) in global and ESAf trade terms, Maersk and MSC respectively, come together for the only full-container service directly connecting the low volume trade of North America with South Africa. MSC has a characteristic fleet deployment policy of often deploying larger and/ or more ships than others on the trades along which it is active. This often gives it a somewhat higher share of trade specific capacity calculations as well as seeing it deploy the largest ships on such trades. South Africa is no exception here. On its Far East-South Africa dedicated Cheetah service it now deploys two ships of 8,100 TEU. When the first of those called Durban towards the end of 2010, it was, at that point in time, the largest containership handled by that port and in fact they are still the largest across all ESAf trades. NileDutch - Nile Dutch Africa Line B.V. Total ESAf annual trade capacity, TEU: 23,000 - E.Coast S.Am - - Far East 11,500 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa 11,500 Vessels deployed on ESAf services: 9 Nominal capacity on ESAf services, TEU: 23,000 Allocation of whole fleet to ESAf: 39% Allocation of operated capacity to ESAf, TEU: 56% Differences may occur due to rounding Based and established in The Netherlands, this privately owned company has its origins in the early 1980s. Arguably a partial misnomer (now no Nile aspect) it traditionally concentrated on specialized liner services down the Atlantic s eastern seaboard, i.e. between North Europe and West Africa (focusing on Angola). Over recent years it has expanded to offer connections between West Africa and: ECSA, the Far East and South Africa. As things stand at the moment (stress the moment, July 2011) it is through a standalone service and the joint SWX / SWAX it operates with NYK, both between Far East-West Africa with wayport calls in South Africa, that provide NileDutch with ESAf trade capacity. This will, however, change as at the end of the SWX will cease and see NYK join the existing and joint China Shipping, Hapag-Lloyd and K Line equivalent. NileDutch will, in turn, take slots on this service from NYK. NYK - Nippon Yusen Kabushiki Kaisha, NYK Line Total ESAf annual trade capacity, TEU: 7,000 - E.Coast S.Am - - Far East 3,400 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa 3,400 Vessels deployed on ESAf services: 3 Nominal capacity on ESAf services, TEU: 8,000 Allocation of whole fleet to ESAf: 3% Allocation of operated capacity to ESAf, TEU: 2% Differences may occur due to rounding With origins going back to 1870, after a number of name changes and takeovers Nippon Yusen Kaisha came to the fore in By the end of the century it was offering inter-continental sailings between Japan and Australia, America, Europe, India and the Philippines. One of the socalled big three Japanese shipping conglomerates, and also publicly-listed, it could actually be considered the 19 See Dynamar s ECSA Container Trades 2011 publication of mid-2011

72 72 East Africa & Southern Africa Container Trades largest such in the world, especially when looking at the range of shipping sectors it is active in 20. A member of the East-West Grand Alliance it has a significant presence there but on the Africa trades in particular, it is not as noticeable. With respect to ESAf it provides vessels to the joint Far East-South Africa- West Africa SWX / SWAX it operates with NileDutch and which was launched in 2009, effectively NYJK s entrance as a vessel operator to West Africa. However with the prospective closure of the SWX, NYK will join an existing joint service of three partners come end August, these being China Shipping, Hapag-Lloyd and K Line. NYK also has limited East Africa coverage through slots from the Evergreen, MOL, Seacon and Wan Hai service, these being taken since April 2011 and which signified NYK s entrance to that side of Africa as a whole. PIL Pacific International Lines Pte Ltd Total ESAf annual trade capacity, TEU: 280,000 - E.Coast S.Am - - Far East 263,500 - ME/ISC 2,700 - North Am. - - N.Eur/Med - - West Africa 13,700 Vessels deployed on ESAf services: 44 Nominal capacity on ESAf services, TEU: 80,000 Allocation of whole fleet to ESAf: 31% Allocation of operated capacity to ESAf, TEU: 30% Differences may occur due to rounding trades. Singapore headquartered and 1967-founded PIL is a privately-owned concern that is affiliated with two publicly listed entities involved in container manufacturing [Singamas] and container ship owning [Pacific Shipping Trust], amongst others. Whilst a Top 20 company by deployed shipping capacity, its low average capacity per vessel of 1,900 TEU belies its regional Southeast Asia and, as a natural deep(er)sea extension, also its Indian Ocean focus. In fact it could be considered a specialist in these With regards to Africa it is actually the fourth largest provider of trade capacity to and from the ESAf region. It is preceded only by the three largest liner groupings in the world, let alone ESAf. For a company that, as a whole, operates around 140 vessels and 265,000 TEU in total it also has a sizeable proportion of this not insubstantial fleet sailing on services to and from the ESAf region. Unsurprisingly these services focus on the Far East as a whole and link with the South Africa, East Africa and Indian Ocean components in almost similar measure. Its ESAf-West Africa trade capacity is actually from a Middle East/Indian Subcontinent service, a joint operation with ZIM s Gold Star Line. This is but one of two joint services PIL is active on along these ESAf trades, the other one being the ASA (Far East-S.Africa) with K Line. Wan Hai - Wan Hai Lines Limited Total ESAf annual trade capacity, TEU: 34,000 - E.Coast S.Am - - Far East 33,500 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa - Vessels deployed on ESAf services: 2 Nominal capacity on ESAf services, TEU: 5,000 Allocation of whole fleet to ESAf: 2% Allocation of operated capacity to ESAf, TEU: 3% Differences may occur due to rounding Established in 1965, the publicly listed Wan Hai is Taiwan s third largest container liner operator after Evergreen and Yang Ming. Similar to PIL in that it built its services up around a regional specialisation, in Wan Hai s case, Northeast Asia, it is perhaps no surprise that its careful forays into deeper sea trades such as Far East-Europe have been with the similarly natured PIL. This does not include the Africa trades, which could be considered a surprise of sorts. For ESAf in particular, it is present as a vessel provider on one service only, this being the joint AEF / EAX which also involves Evergreen, MOL and X-Press (Sea Consortium) and connects with the Far East. 20 Although the Maersk Group, through container liner ships, product tankers, offshore and related vessels and tugs/towage units controls more ships on a unit [piece] basis

73 CONTAINER LINER CARRIERS 73 X-Press X-Press Feeders Ltd Total ESAf annual trade capacity, TEU: 16,000 - E.Coast S.Am - - Far East 15,700 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa - Vessels deployed on ESAf services: 1 Nominal capacity on ESAf services, TEU: 2,000 Allocation of whole fleet to ESAf: 2% Allocation of operated capacity to ESAf, TEU: 3% Differences may occur due to rounding X-Press Feeders Ltd, registered in the British Virgin Islands, is the holding company for Sea Consortium of Singapore and X-Press Container Line of the UK. Together, these two operational arms provide what is considered to be the largest pure (as in no liner cargo) and common (as in open to all and not dedicated to a single company) container feeder provider in the world. Covering most of the main feeder trades in the world, Sea Consortium is responsible for Southeast Asia, Indian Subcontinent and Middle East whilst X-Press CL covers North Europe and the Mediterranean (and also the Caribbean). A privately run company it has been controlled by Hartnoll family having been established by Capt. Chris Hartnoll in the 1970s with his son, Mr. Tim, now leading the grouping. Sea Consortium Pte Ltd Probably the oldest member of the small group, Seacon, as it is abbreviated to, was established in Singapore in 1972 by Capt. Chris Hartnoll. Whilst traditionally concentrating upon Singapore based feeder trades, or others to/from Bangladesh and between the Persian Gulf and India s West Coast, for example, it has also engaged in joint services with liner operators along routes that are not necessarily feeder like. Its sole presence on the ESAf trades is in such a capacity providing one ship, this since April 2011, to the joint AEF / EAX of Evergreen, MOL and Wan Hai as well. This is a relatively straightforward Southeast Asia-East Africa service and may well be that other carriers, vessel operating or otherwise, would be more likely to book their cargoes with a common independent operator like Seacon rather than (have to) give the same to a nominal competitor. Interestingly another common feeder operator, Simatech, used to have a similar arrangement with a predecessor service. ZIM ZIM Integrated Shipping Services Ltd Total ESAf annual trade capacity, TEU: 17,000 - E.Coast S.Am - - Far East 3,200 - ME/ISC 7,100 - North Am. - - N.Eur/Med - - West Africa 7,100 Vessels deployed on ESAf services: 11 Nominal capacity on ESAf services, TEU: 23,000 Allocation of whole fleet to ESAf: 11% Allocation of operated capacity to ESAf, TEU: 7% Differences may occur due to rounding through its confirmed subsidiary Gold Star Line of Hong Kong. ZIM Integrated Shipping Services Ltd was established in 1945, in Haifa, Israel. Previously state-owned it is now one of the investments of the publicly-listed Israel Corp. It is still, effectively, the national carrier of Israel and has a disparate service provision, much of which is provided through slots. It has no direct presence itself on the ESAf trades having withdrawn its one ship general cargo ship operation from the Mediterranean to East and South Africa halfway through As such, all its trade capacity is Gold Star Line Ltd Established in Hong Kong in 1958, it was understood (believed), and often reported, that Gold Star was affiliated with ZIM. For a long time formal confirmation was never been forthcoming until a court case that ran through 2009 involving ZIM and a former Far East regional manager (who was also a former Managing Director of Gold Star). In evidence, the then Asia area president of ZIM confirmed Gold Star was in fact owned by ZIM In later media references relating to this case, it was referred to as an associate of ZIM.

74 74 East Africa & Southern Africa Container Trades Even before this, Gold Star was well-known for providing relay and feeder services, within its operational area of Far East, Indian Subcontinent, sub-saharan Africa and Australia, on behalf of ZIM. The Indian Ocean has been at the heart of its operations. In 1958 it inaugurated a service between the Far East and West Africa. In the late 1970s and early 1980s it opened an India-South and West Africa service plus an Indian Ocean Islands feeder that was subsequently extended to East Africa and the Indian Subcontinent and actually claims to have been the pioneer of containerisation in East Africa. It also managed the service(s) of Mauritius domiciled Laurel Navigation along that Subcontinent-East (and South) Africa route until Laurel became a brand only before quietly disappearing altogether as the 2010s approached. For all this, and despite being one of only eight (8) operators with more then ten (10) vessels operating to/from ESAf, its trade capacity is provided through two services. One is a standalone link between the Far East and West Africa, the FAX, which wayports in South Africa (and Colombo, Sri Lanka). The other is a joint operation with PIL that connects Durban with the Middle East and Indian Subcontinent.

75 TRADE VOLUMES, CARRYINGS and THROUGHPUTS 75 TRADE VOLUMES, CARRYINGS and THROUGHPUTS Introduction and Overview The availability of comprehensive and unambiguous, container trade statistics has been an issue as old as containerisation itself and is one which is industry wide and not limited to any particular trade. There are though regional/ trade variations with regard to the availability, and within that, the quality (detail), of container volume or similar figures. That being said, there is also a variety of sources that seek show the numbers of containers being moved along particular trades, and/ or between particular countries and regions and/ or by particular container service providers. These differing sources base their calculations upon similarly differing approaches: o o o Direct carryings, volumes, expressed in TEU, as drawn from customs manifests, occasionally from carrier manifests An assessment of the generic unitised trade between countries and regions calculated from governmental or similar general merchandise trade statistics and to which historic load factors are applied to containerisable commodities within the whole Throughputs of containers, expressed in TEU, as reported by ports and/ or terminals within those ports Manifests, be they customs and/ or carrier in origin, would appear to be the most directly relevant as pertaining to the carriers themselves but the availability of same is limited to a few trade lanes only. Merchandise trade based unitised statistics are, by definition, different to the specific container based approaches. Such commodity statistics utilise weight based load factors, which can change, as applied to those particular cargoes commonly placed in transport units. As time goes on, as the container become more flexible and popular, this list can expand too. Port throughput is a record of all container movements from and to ocean going vessels within a port so by implication includes any container that is lifted be it full or empty, gateway or transhipment, this latter also counting as one move in and one move out from vessel-to-vessel. Gateway cargo would only be counted once as it passes in through the port or out. Also, and by and large, port throughput data tends to be generic with the availability of geographic/ trade lane related throughput not consistently available. However, in studies such as these which look at the entire trading spectrum of a certain region, then the generic figures do have greater value. Alongside these differences in statistical approach, all sources will differ in terms of geographical interpretation. At one level for example, the ultimate origin/ destination of cargoes may differ from the country of port of loading or discharge. Different sources may apply therefore different applications as to what constitutes journey s end or start. Further, reporting organisations the world over have different views as to what constitutes geographical regions such as the Oceania or Australasia or East Africa even, something that will impact figures looking at specific bilateral trading relationships, be they container or commodity based. Even with these all these caveats in mind, individually the various sources and results do give an indication at the very least as to the state of the container trade to/from/between countries and regions. Combined they can be complementary, producing a wider picture, something which is reinforced when common trends and patterns can be identified among them.

76 76 East Africa & Southern Africa Container Trades Notes for the East and Southern Africa, Indian Ocean Islands trades Unfortunately, for the ESAf region and on top of the introduction, the availability of container trade information is more limited than for other lanes. As such, in this chapter, statistics and brief analyses are made along the following ESAf related trades based upon their indicated statistical approaches: o Merchandise/ commodity based trade statistics between Southern Africa and East Africa and Europe and the Far East, 2008/ o Manifest based volumes for: o Brazil trades, by certain countries within the overall ESAf region including some hinterland, o For US-Africa trades, by certain countries within the overall ESAf region including some hinterland, o Port throughputs for some container handling ports in ESAf, as known/ reported, (with 2000 figures by way of comparison where available) The four trades (with: -Europe; -Far East; -Brazil; -US) are introduced with general tables covering import/export flows to/from ESAf or part using statistics as known for plus forecasts for the following two years to end Later on these general tables are expanded by a further separation by either subregion (e.g. East Africa) or country although no forecasts are provided for these. Finally, the various sub-totals for each of the four trades are grouped again under Southern or Eastern Africa to show total volumes flowing from the end trades through these particular ESAf (sub-) regions. Trade volumes, main ESAf trades Summary of historic and forecast trade volumes (TEU) by main route When applying certain weight tonne/ load factors to commodities moving bilaterally between countries which can then be aggregated into regional groupings the following patterns can be seen between the East and Southern Africa (no Indian Ocean Islands) and its main trading blocs of the Far East and Europe: Table 23: Commodity based container volumes, East & Southern Africa-Far East, Far East-E.& S.Africa WB: Import E&SAf/export Far East 1,703,000 1,610,000 1,522,000 1,479,000 1,328,000 1,139,000 EB: Export E&SAf/import Far East 298, , , , , ,000 Total Trade 2,001,000 1,893,000 1,790,000 1,744,000 1,590,000 1,409,000 Growth 6% 6% 3% 10% 13% - Imbalance TEU -1,405,000-1,327,000-1,254,000-1,214,000-1,066, ,000 Imbalance % -83% -82% -82% -82% -80% -76% Imbalances from the perspective of exports out of E.&Sth Africa, eastbound (EB) Figures in italics are indicative forecasts E.& S.Africa = Djibouti-Angola range, including hinterland; Far East = Northeast Asia, Southeast Asia & neighbouring Table based upon data sourced from MDS Transmodal Table 24: Commodity based container volumes, East & Southern Africa-Europe, Europe-E.& S.Africa SB: Import ESAf/export Europe 583, , , , , ,000 NB: Export ESAf/import Europe 626, , , , , ,000 Total Trade 1,210,000 1,150, , , , ,000 Growth 5% 19% 6% -6% 2% - Imbalance TEU 43,000 56,000 29,000 73,000 88,000 26,000 Imbalance % 7% 10% 6% 17% 20% 5% Imbalances from the perspective of exports out of E.&Sth Africa, northbound (NB)

77 TRADE VOLUMES, CARRYINGS and THROUGHPUTS 77 figures in italics are indicative forecasts East & South Africa = Djibouti-Angola range, including hinterland; Europe includes the Mediterranean Table based upon data sourced from MDS Transmodal As commodity/merchandise trade figures are confirmed forecasts can be adjusted. From other, manifest based, sources, container volumes to and from specific countries, in this case the United States on one hand and Brazil on the other, are also available ( forecasts). Table 25: Volumes between United States and ESAf, US-ESAf SB: Import ESAf/export US 72,000 68,000 61,000 63,000 86,000 71,000 NB: Export ESAf/import US 74,000 71,000 63,000 51,000 65,000 69,000 Total Trade 146, , , , , ,000 Growth 5% 12% 9% -25% -3% 5% Imbalance TEU 2,000 3,000 2,000-12,000-21,000-2,000 Imbalance % 3% 4% 3% -19% -24% -3% Imbalances from the perspective of exports out of ESAf, i.e. westbound (WB); figures in italics are indicative forecasts Table based upon historical data sourced from MARAD Table 26: Volumes between Brazil and ESAf, Brazil-ESAf EB: Import to ESAf/export Brazil 66,000 62,000 56,000 56,000 66,000 - WB: Export from ESAF/import Brazil 15,000 14,000 12,000 7,000 11,000 - Total Trade 81,000 76,000 68,000 64,000 77,000 Growth 7% 12% 6% -17% - - Imbalance TEU -51,000-48,000-44,000-49,000-55,000 - Imbalance % -77% -77% -79% -88% -83% - Imbalances from the perspective of exports out of ESAf, i.e. northbound (NB); figures in italics are indicative forecasts Table based upon historical data sourced from Datamar From the above, and looking at 2010, the Far East is quite clearly the largest single trade even without the Indian Ocean Islands and supports the dominant provision of container capacity between ESAf and the Far East. When placed in perspective, based upon 2010 figures, the total trade between the Far East and East and South Africa is approaching double (+85%) that of with North Europe. When looking at allocated and annualised trade capacity the difference as actually +129%. Although along the two arguably mature trade lanes of Europe and the US there is a slight export cargo surplus it is with the two developing economies/regions of the Far East and Brazil that the headhaul leg is the imports trip. Considering the sheer weight of cargo moving to/from the Far East there is, therefore, an overall export imbalance. This comes from the fact that to/from ESAf and the Far East the imbalance is most extreme with eight out of every ten containers moving westwards to South and East Africa having to be returned empty. Each of the four trades is broken down further by either ESAf sub region or even individual countries, where known. Far East-ESAf detailed trade statistics From the earlier figures, it was clear to see the relative dominance of the Far East with regards to cargoes moving to and from the ESAf region. Within that latter though, from here the pattern starts to emerge of South(ern) Africa being the main trading partner:

78 78 East Africa & Southern Africa Container Trades Table 27: Commodity based container volumes with Far East, separated by import/export, East/Southern Africa, Imports to ESAf (WB) Exports from ESAf (EB) Far East Southern Africa 1,032, , , , , ,700 -East Africa 286, , ,200 57,200 49,900 44,400 Total Trade 1,319,000 1,114, , , , ,000 Grand Total, import + export 1,634,000 1,421,000 1,038,000 -of which Southern Africa 79% 80% 76% -of which Eastern Africa 21% 20% 24% Differences may occur between data as a result of rounding Far East = Northeast Asia, Southeast Asia & neighbouring ; E +Sthn Africa = Djibouti-Angola range, including hinterland Table based upon data sourced from MDS Transmodal Europe-ESAf detailed trade statistics Whilst not as pronounced as with the Far East, the South(ern) share of volumes shipped to/from Europe still exceeds 70%: Table 28: Commodity based container volumes with Europe, separated by import/export, East/Southern Africa, Imports to ESAf (WB) Exports from ESAf (EB) Far East Southern Africa 332, , , , , ,900 -East Africa 137, , , , , ,200 Total Trade 469, , , , , ,000 Grand Total, import + export 967, , ,000 -of which Southern Africa 72% 70% 73% -of which Eastern Africa 28% 30% 27% Differences may occur between data as a result of rounding Europe includes the Mediterranean ; E +Sthn Africa = Djibouti-Angola range, including hinterland Table based upon data sourced from MDS Transmodal By way of indication as to the strength of the Mediterranean and Black Sea trade with South Africa the country, and also based upon data sourced from MDS Transmodal, total carryings along this route in 2009 approximated 208,000 TEU of which 125,000 TEU were southbound to South Africa, an imbalance of 43,000 TEU (the difference between southbound and northbound) or -35% from the perspective of South Africa exports. In addition to the commodity based trade volumes, there are also carrier or customs manifest based volumes. Container Trades Statistics has information available for Europe, including Mediterranean, based trades. These figures are based upon returns from the various liner companies and are for broad trade lanes only, in this case for Europe and sub-saharan Africa: Table 29: Volumes as reported between Europe and sub-saharan Africa, Africa-Europe Southbound to Africa 1,212,000 1,094,000 1,103,000 Northbound from Africa 674, , ,000 Total 1,886,000 1,686,000 1,715,000 Imbalance -44% -46% -45% Growth 12% -2% - Note: "Africa" here refers to sub-saharan Africa Above based upon data sourced from Container Trades Statistics

79 TRADE VOLUMES, CARRYINGS and THROUGHPUTS 79 Whilst showing, on this occasion, an export deficit from Africa it is worth noting that these figures will also include West Africa as well. United States-ESAf detailed trade statistics Between the United States and specific countries, trade partners, information comes from the US Department of Transportation, Maritime Administration or MARAD. These go a little further than the summarised table already presented: Table 30: Volumes between United States and ESAf countries, by import and export, NB: ESAF export/us Import East Africa Ind. Ocean Southern Africa Burundi Kenya 5,090 5,480 5,780 Malawi Rwanda Tanzania Uganda Zambia Comoros Madagascar 1,820 4,030 5,070 Mauritius 2,660 2,000 1,800 Seychelles Botswana Lesotho Mozambique 1, ,160 Namibia South Africa 50,860 37,650 49,450 Swaziland Zimbabwe Total 63,100 51,400 64,700 East Africa Ind. Ocean Southern Africa SB: ESAf import/us export Burundi Kenya 3,520 9,400 10,370 Malawi Rwanda Tanzania 3,070 4,670 7,300 Uganda Zambia Comoros Madagascar 2,030 1,370 1,510 Mauritius Seychelles Botswana Lesotho Mozambique 2,430 2,080 2,610 Namibia 430 1,550 1,880 South Africa 48,460 42,050 60,420 Swaziland Zimbabwe Total 61,200 63,100 86,300 t Afr Total trade Burundi

80 80 East Africa & Southern Africa Container Trades Ind. Ocean Southern Africa Kenya 8,600 14,900 16,200 Malawi Rwanda Tanzania 3,500 5,300 8,000 Uganda Zambia Comoros Malagasy 3,800 5,400 6,600 Mauritius 2,700 2,500 2,400 Seychelles Botswana Lesotho Mozambique 4,000 2,900 3,800 Namibia 500 1,700 2,100 South Africa 99,300 79, ,900 Swaziland Zimbabwe Total 124, , ,000 Imbalance ESAf exports-imports 1,900-11,700-21,500 Imbalance ESAf exports/imports 3.1% -18.5% -25.0% Differences can occur due to rounding TEU for 2010 are estimates Notes: Above based upon data sourced from MARAD These statistics, whilst but a very small portion of the United States overall containerised trade, less than 1% based upon 2009 s total 24.9mn TEU, are interesting all the same. Whilst declining overall there has been an apparent rebalancing with the gap between ESAf imports and exports narrowing, at the least and (estimated) to have moved into a slight surplus in Further, they, in line with other statistics shown, clearly illustrate the dominance of Southern Africa and within that, South Africa, for the ESAf region s overall trade. Table 31: Volumes between United States and ESAf sub-regions, Regional volumes, TEU Total trade 124, , ,000 of which, East Africa 13,400 21,800 25,400 of which, Indian Ocean Isl. 6,500 7,900 9,000 of which, Southern Africa 104,200 84, ,500 Regional shares of total East Africa 11% 19% 17% Indian Ocean Isl. 5% 7% 6% Southern Africa 84% 74% 77% 100% 100% 100% On its own, South Africa the country accounts for 80% of 2010 s estimated container volumes (2009: 70%) to and from the United State. Unsurprisingly, country specific data from another source shows a similar, if not more extreme pattern. South Americe (Brazil)-ESAf detailed trade statistics Further information in this regard relates to one of the up and coming countries in the world, Brazil, this being part of the so-called BRICS nations of developing economies and to which informal grouping South Africa is also considered. 22 Estimates based upon trade development 2010 over 2009 by tonnes

81 TRADE VOLUMES, CARRYINGS and THROUGHPUTS 81 Table 32: Volumes between Brazil and ESAf countries, EB: Brazil exports/esaf imports Comoros Kenya 3,480 2,030 1,650 Madagascar 1,840 1, Mauritius Mayotte Mozambique 1,730 2,060 1,610 Namibia 900 1,070 1,910 Reunion Seychelles South Africa 44,580 47,360 57,570 Tanzania 1, Zimbabwe TOTAL 55,600 56,200 65,500 WB: Brazil imports/esaf exports South Africa 11,800 7,200 11,300 Rest TOTAL 11,900 7,400 11,400 Sub-regional shares, total trade Southern Africa 87% 90% 94% East Africa 8% 4% 3% Indian Ocean Islands 4% 5% 2% ESAf-Brazil total trade 68,000 64,000 77,000 Brazil grand total 3,975,000 3,239,000 3,780,000 ESAf share 1.4% 1.7% 1.7% Differences may occur due to rounding. Here: Southern Africa = Mozambique, Namibia, South Africa, Zimbabwe East Africa = Kenya, Tanzania Ind.O = Comoros, Madagascar, Mauritius, Mayotte, Reunion, Seychelles Above based upon data sourced from Datamar The ESAf region is, from the above, currently only a minor trading partner for Brazil. Even so, the figures do show that the trade is imbalanced in favour of imports to ESAf with 2010 showing that for every 3.7 TEU moving into ESAf from Brazil only 1.0 moves back. Further, and most clearly on the return westbound leg, South Africa even without the contributions from fellow sub-regional neighbours Namibia, Mozambique and Zimbabwe, is the largest trading partner accounting for 80% of eastbound containers, 99% of westbound and 83% of the whole in In 2008 South Africa s share of the Brazil-ESAf trade was as much as 89%. East Africa-Southern Africa volumes relationship In line with the recurrent them of South(ern) Africa dominance in terms of cargoes moving in/ out of the ESAf region, a summary table by these two sub-regions and their trading relationship with the various trade ends reflects the below:

82 82 East Africa & Southern Africa Container Trades Table 33: Volumes separated by East/Southern Africa, by main trades and direction, Imports ESAf Exports ESAf Southern Africa Far East 1,032, , , , , ,700 -Europe 332, , , , , ,900 -United States 51,600 46,100 65,400 52,600 38,700 51,100 -Brazil 47,200 50,500 61,100 11,800 7,400 11,300 Total Trade 1,464,000 1,266, , , , ,000 East Africa Far East 286, , ,200 57,200 49,900 44,400 -Europe 137, , , , , ,200 -United States 7,400 15,100 18,700 6,000 6,600 6,800 -Brazil 5,200 2,500 2,000 <100 <100 <100 Total Trade 436, , , , , ,000 Grand Total Impt/Expt 1,899,000 1,648,000 1,348, , , ,000 -of which Southern Africa 77% 77% 74% 78% 77% 78% -of which East Africa 23% 23% 26% 22% 23% 22% Grand Total, import + export 2,783,000 2,501,000 2,229,000 -of which Southern Africa 77% 77% 75% -of which Eastern Africa 23% 23% 25% Differences may occur between data as a result of rounding Europe includes the Mediterranean; Far East = Northeast Asia, Southeast Asia & neighbouring countries East + South Africa = Djibouti-Angola range, including hinterland, for MDS based data Table based upon data sourced from MDS Transmodal for Far East & Europe; MARAD for US; Datamar for Brazil Reefer cargo container volumes South Africa is well known for its refrigerated cargo exports, in particular citrus fruits although these are by no means the only such cargoes. From the various reefer cargoes as exported by containers were sent to: Table 34: South Africa Reefer Cargo exports by destination, Import region Far East 22,000 11,700 19,800 Europe 105,300 84,100 97,100 North America 4,300 3,600 4,500 Middle East 28,300 13,800 18,600 East Africa Indian Ocean Islands 2,300 1,600 2,300 West & Central Africa 4,300 2,500 4,500 Others Total 167, , ,000 Of which -Cape Town 98,200 77,900 85,800 -Durban 42,500 24,600 39,400 -Maputo Ngqura Port Elizabeth 26,600 15,300 22,100 Notes: Reefer cargoes include citrus, deciduous fruits, flowers, vegetables, subtropical fruit, processed foods and others Table based upon data sourced from the Perishable Products Export Control Board, PPECB

83 TRADE VOLUMES, CARRYINGS and THROUGHPUTS 83 Reefer cargoes in particular citrus fruits are also covered in the cargoes/commodities sub-section of the general background trades chapter. Throughputs, ESAf port handled containers As an indication of the numbers of containers being moved, the throughputs of the ESAf region s ports is reasonable to use and at the least places the region s container trades volumes and the liner operators carryings in some background context. East Africa Ind. Ocean Isl. Southern Africa Table 35: ESAf port throughputs, Port Mombasa, KE 695, , , , , ,900 Dar Es Salaam, TZ 409, , , , , ,600 Tanga, TZ ,700 Toamasina (Tamatave), MG 141, , , ,000 70,600 Port Louis, MU 412, , , , , ,800 Port Reunion, RE - 208, , , , ,900 Beira, MZ 105,000 61,000 54,900 54,300 54,300 34,500 Maputo, MZ 143, ,400 92,300 80,200 62,200 31,500 Nacala, MZ 71,100 53,200 49,800 44,700 33,100 - Pemba, MZ 10,000 9,000 8,700 8,600 8,600 - Quelimane, MZ 10,000 9,000 8,800 8,700 8,700 - Walvis Bay, NA 247, , , ,000 83,300 33,700 Cape Town, ZA 708, , , , , ,000 Durban, ZA 2,523,100 2,395,200 2,642,200 2,479,200 2,335,000 1,125,200 East London, ZA 53,000 40,300 57,400 42,000 41,800 24,100 Ngqura, ZA 360,500 9, Port Elizabeth, ZA 325, , , , , ,100 Richards Bay, ZA 15,300 6,300 9,400 4,000 3,300 8,500 Total, ESAf ports 6,231,000 5,729,000 6,139,000 5,646,600 5,217,400 2,731,000 Growth year-on-year 8.8% -6.7% 8.7% 8.2% 12.1% Growth over % 109.8% 124.8% 106.8% 91.0% Notes: -Figures in italics are estimates -All containers, empty and full, including domestic, intra-esaf and/ or transhipment -KE = Kenya; TZ = Tanzania; KM = Comoros; MG = Madagascar; MU = Mauritius; YT = Mayotte; RE = Reunion; SC = Seychelles; MZ = Mozambique; NA = Namibia; ZA = South Africa From those ports for whom figures are available or have been estimated, they combine to receive over 93% of the allocated annual trade capacity as calculated in July Based upon this share and applying it to the regional throughput as known of 6.0mn TEU, overall the ESAf region s ports could have ended up handling a total of 6.63mn TEU in This would come from the much smaller regional ports. For example, Madagascar s throughput, excluding that for Toamasina, was estimated to be another 185,000 TEU in From the above table, the relative dominance of South Africa is again clear with them contributing the vast majority of the 73% Southern Africa regional share of that 6.0mn TEU. (Namibia + Mozambique only handle 8-9% of the 6.0mn). The two main East Africa ports of Mombasa and Dar Es Salaam, coincidentally both the third and fourth largest ports for both annual trade capacity and throughput, combine to handle nearly 18%. The remainder, just over 9%, passes through Indian Ocean Island ports where known.

84 84 East Africa & Southern Africa Container Trades Capacity Utilisation Whilst an inexact science throughput is for whole 2010 calendar year; trade capacity is based upon the market situation as of July 2011; in between the two, trade capacity has altered comparison between the extrapolated 2010 throughput and calculated two-way trade capacity indicates that 85% of all available slots could be occupied by a container of some form, be it paying, feeder/transhipment or repositioning. Such an approach is possible given that this publication covers all ESAf trades and that throughputs are, by their nature, all encompassing. In order to arrive at the 85%, some adjustments were made to arrive at twoway trade capacity: a) counting some 127,000 TEU in [July 2011] trade capacity as pure one-way, i.e. to or from ESAf only b) adding the 308,000 TEU in estimated intra ESAf trade capacity to bring the comparison closer to trades covered by port throughputs In doing so this leaves an estimated total two-way trade annual capacity as of mid-2011 of around 7.67mn TEU which gives the above estimated occupancy rate. If the container trades to and from ESAf grow at a uniform rate of 10%, this being the overall growth factor the totals of the major lanes detailed above, then throughput of ESAf s ports could reach 7.32mn TEU for 2011 which would lead to an occupancy rate of 95%. Considering how 2011 is progressing though, an arguably more realistic 4-5% growth rate would leave throughput of 6.93mn TEU and an occupancy rate of 90%.

85 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 85 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL Summary As of July 2011 twenty (20) different ports within the East Africa, Southern Africa and Indian Ocean Islands region as defined received direct calls from the fiftyseven (57) intercontinental deepsea shipping services identified. South Africa accounted for the largest number of ports, six (6) with Mozambique and Tanzania providing another three (3) each. Reunion, Comoros, Kenya, Madagascar, Mauritius, Mayotte, Namibia and Seychelles, all had a sole representative only. Not included in the 20 are another seven (7) Madagascar and two (2) Mozambique ports that appear on the rotations of intra-esaf and/ or cabotage services 23. Table 36: All ESAf ports called by deepsea liner services Weekly Trade Average Total Port Calls Connections vessel cap Trade Cap Durban, ZA , ,000 Cape Town, ZA , ,000 Mombasa, KE , ,000 Dar Es Salaam, TZ , ,000 Port Elizabeth, ZA , ,000 Ngqura, ZA , ,000 Port Louis, MU , ,000 Walvis Bay, NA , ,000 Toamasina [Tamatave], MG , ,000 Maputo, MZ ,500 75,000 Nacala, MZ ,900 60,000 Port Reunion, RE ,700 66,000 Zanzibar, TZ ,900 47,000 Port Victoria (Mahe), SC ,600 34,000 Tanga, TZ ,700 34,000 Longoni, YT ,800 26,000 Beira, MZ ,400 25,000 Richards Bay, ZA ,400 11,000 East London, ZA ,900 8,000 Mutsamudu, KM ,700 6,000 Totals ,800 3,743,000 In total, and on average, the 20 ports combine to receive very nearly one hundred and twenty-eight (128) scheduled calls each week and which translate into more than one hundred and fifty-five (155) individual trade connections. In terms of one-way trade capacity flowing through each port, most is allocated to Durban and Cape Town, in that order, both in South Africa. Combined, nearly 43% of the total annualised trade capacity flows through them. The next two most popular are both East Africa ports in Mombasa, Kenya and Dar Es Salaam, Tanzania. They receive close to 20% of trade capacity as a whole. Trade connections #1: Where a weekly service covers, for example, two separate trades, the ESAf ports on that rotation will, generally speaking, have two weekly trade connections. Adjustments to this can be made for actual frequency of the service and the nature of the port calls. Trade connections #2: Mutsamudu appears on only one intercontinental deepsea liner service, DAL (UAFL) s Middle East Express, this running at less than a week s frequency hence the 0.5 trade connections. 23 These being, in Madagascar: Antsiranana, Diego Suarez, Ehoala, Mahajanga [Majunga], Nosy Be, Tulear, Vohemar; in Mozambique: Pemba and Quelimane

86 86 East Africa & Southern Africa Container Trades Southern Africa Ports called and developments Overview Ten (10) of the 20 ports called by deepsea/ intercontinental services fall within the Southern Africa range from Walvis Bay in Namibia on the South Atlantic coast, then moving south and east around South Africa before turning north again, along the Indian Ocean littoral up to and including Nacala in northern Mozambique. All told they receive over two-thirds of ESAf regional trade capacity. They are though dominated by South Africa ports and within that Durban, which on its own accounts for over a quarter of ESAf trade capacity and at twenty-seven/eight calls made each week is by far the largest in these terms too. The next largest is Cape Town at seventeen/eighteen (17/18) port calls per week. Walvis Bay has a surprising number of calls per week at eleven/twelve (11/12) no doubt benefitting from its position en route and between South Africa the country and West Africa and North Europe. The three Mozambique ports of Maputo, Nacala and Beira are, for their parts, heavily influenced by the Far East from where they derive 85% of their trade capacity. All told, these three ports receive eleven (11) calls on average each week which translates into twelve weekly trade connections. Namibia Walvis Bay Total ESAf annual trade ca pacity, TEU: 183,000 - E.Coast S.Am - - Far East 23,500 - ME/ISC - - North Am. 3,300 - N.Eur/Med 64,000 - West Africa 92,700 Total weekly trade connections: 14.0 Avera ge nominal capacity per ves s el, TEU: 1,900 Throughput 2010, all trades, TEU: 248,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf its West Africa capacity actually comes from South Africa based services. Walvis Bay is the largest of the two ports under Namport s remit, the other being Lüderitz. Namport has been Namibia s National Port Authority since 1994 and currently controls, in that regard, Walvis Bay and Lüderitz. Traditionally an important fishing and offshore centre it also has a not unreasonable container throughput and allocation of liner services. As would be expected the bulk of these reflect its Atlantic Ocean frontage. Although it is also called on a couple of West Africa-Far East links most of Walvis Bay s container terminal has been in operation since 1999 and is housed at berths 1-3 with a total quay length of just over 500m and depth alongside of 12.8m. Advised capacity is 250,000 TEU per year and as a whole the port has five (5) mobile cranes of 140 tonnes or 104 tonnes capacity. Following feasibility studies carried out by Japan International Cooperation Agency in 2010, a tender was launched for a (converted) USD 270mn expansion of the container terminal to 1.0mn TEU over three phases. Alongside this the aim will be to be able to handle vessels of 8,000 TEU rather than the current around 3,500 TEU limit 24. Another aim of this development is to serve the southern and central Africa hinterland. The associated Walvis Bay Corridor Group claims that importers and exporters can save as much as ten (10) days in transit time to/ from Zimbabwe sailing time from North Atlantic is about 3-5 days less than via South Africa - and is working at developing the Zimbabwean Dry Port within Walvis Bay port itself iv. The port has also had some success in providing an alternative to the South African province of Gauteng which is usually served by Durban. At the end of 2010 Namport announced an intended USD 400mn investment to include dredging the approaches to at least 16m. With the dredging contract awarded early the following year for berths 1-3 plus 24 See Post Publications Developments September 2011

87 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 87 the entrance channel, when finished the port should be capable of handling two 5,000 TEU vessels simultaneously. Lüderitz, Namibia The port of Lüderitz is Namibia's second port, located between Walvis Bay and the Orange River mouth. Established in the 1800s, in the 1990s it was effectively abandoned until taken over by the then new Namport organisation in Currently not on the schedules (other than possibly inducement) of any main line service, reinforces its position as mainly handling coastal general cargo traffic although it does now boast three mobile harbour cranes of 64 tonnes or 25 tonnes. South Africa Transnet is the state-owned corporation, also known as a parastatal,that controls the national infrastructure. It operates through five divisions under the generic Transnet brand: Transnet rail (Spoornet as was, providing railfreight); Transnet rail engineering (previously Transwerk; rolling stock maintenance); Transnet pipelines (Petronet; fuel and gas pipelines); and most importantly here: Transnet national ports (National Port Authority; landlord of South African ports) and Transnet port terminals (South Africa Ports Operations, SAPO; port and terminal management and operations). Transnet port terminals concentrates upon container, car and breakbulk/multipurpose facilities, thirteen all told. Thus, whilst there are no privately operated box facilities, Grindrod, for example, is involved in dry bulk terminal activities in Durban and Richards Bay (and Maputo and Walvis Bay) and liquid edible bulk in Cape Town and Durban. Transnet, therefore, currently has container and/ or multipurpose operations in Cape Town, Durban, East London, Ngqura, Port Elizabeth and Richards Bay. The only major South African port where it is active but which has no container liner calls, is Saldanha which houses the country s sole iron ore terminal. The wider shipping community, especially terminal operators and carriers, would undoubtedly like to see either terminal concessions offered out to the private sector or the application of public-private partnerships to, as they see it, improve productivity and efficiency as this is where the expertise is. This is not purely the view of global concerns as Maersk (with a foot in both terminal and liner camps) say but also the local players as Grindrod and Ocean Africa (coincidentally a Maersk/Grindrod venture). However, this refrain for greater private sector involvement is not only applicable to South Africa but also to ESAf region as a whole and seen as the (only?) way to reduce costs and delays. The contrast with West Africa, where there has been significant private sector involvement, could not be starker. Whilst Transnet, in some form, has been the subject of speculation as to possible privatisation, in some form, the influence of the local trade unions will make this a politically difficult step. Being a national organisation means that what may be occasionally local issues, better said, disputes, can take on national implications. The country was affected in the run-up to the FIFA World Cup of mid-2010 by a near three-week strike affecting the nation s ports leading carriers to announce emergency surcharges. Ultimately, disruption to liner services and supply chains lasted longer as liner operators had to charter extra vessels to catch-up on the backlog and reposition empty containers. On top of this was the truck drivers strike of February Whilst some ports experienced delays this caused greater problems inland at Johannesburg s City Deep Inland Container Depot for example. Congestion, whatever the root, is also not a purely a recent issue. Cape Town, Durban and Richards Bay were all hit by congestion of some form in 2007.

88 88 East Africa & Southern Africa Container Trades Inefficiencies at terminals, delays in the hinterland and with no perceived indication of improvement (read: private sector involvement) leads others to look for alternatives. In this regard and the ESAf region s concentration on the South[ern] Africa transport corridors, direct threats come from Maputo in Mozambique to the northeast and Walvis Bay in Namibia to the northwest both of which are actively searching for South Africa s lucrative hinterland cargoes. For its part, Transnet is looking at developing its facilities and operations. Those relating to individual container ports have been summarised in their profiles but as an indication and as part of a larger process, at the start of 2011 Transnet issued an inaugural USD 750mn five-year bond to fund its infrastructure development. The port profiles below are ordered from west/atlantic and eastwards through to the Indian Ocean. Cape Town Total ESAf annual trade ca pacity, TEU: 613,000 - E.Coast S.Am 7,500 - Far East 250,300 - ME/ISC 57,100 - North Am. 36,800 - N.Eur/Med 226,800 - West Africa 34,900 Total weekly trade connections: 20.0 Avera ge nominal capacity per ves s el, TEU: 2,800 Throughput 2010, all trades, TEU: 708,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Cape Town is situated on what has been one of the world's most important ports of call on the world s major trade routes since the mid 1600s. In more modern times though, being over 1,000 kilometres from Johannesburg, it has limited major development potential, however. Even so, it is an important container port, second only to Durban and handles the largest amount of fresh fruit in South Africa (deciduous fruit, perishables and frozen products). The Cape Town Container Terminal in the outer Ben Schoeman Dock currently has four (4) berths three of which can accommodate vessels of 325m and the fourth (berth 601), 300m. Under budget and on-time dredging alongside four of these berths from m to 15.5mn, plus refurbishment of the fifth to accommodate postpanamax ships, was completed in This came together with an order for a total of twenty-four (24) pieces of ship-to-shore or terminal container handling equipment with the last pieces (two) expected in The USD 800mn project will ultimately double capacity to 1.4mn TEU. Further productivity could be provided by implementing a pre-booking night time system to encourage greater usage off-peak v. For all its success so far in keeping its development to schedule and for avoiding some of the issues confronting other ESAf ports, Cape Town also has problems that affect its performance although these are of a meteorological nature. During the March-September windy season, wind speeds can go up to km per hour with gusts some 20kmh or so more. Transnet suspends operations in 80kmh winds. In February 2011 for example, operations were halted for nine days. Over the course of 2010 a total of 964 hours (more than forty (40) days) were lost due to high winds; in the first quarter of 2011 this was already 551 hours (nearly twenty-three (23) days) vi. Ngqura (Coega) Total ESAf annual trade ca pacity, TEU: 232,000 - E.Coast S.Am 16,100 - Far East 99,200 - ME/ISC - - North Am. - - N.Eur/Med 96,200 - West Africa 20,000 Total weekly trade connections: 6.0 Avera ge nominal capacity per ves s el, TEU: 4,300 Throughput 2010, all trades, TEU: 360,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf The still new port of Ngqura, which forms part of the surrounding Coega Industrial Development Zone in the Eastern Cape saw its container terminal officially opened in October 2009 with the berthing of its first paying ship, a 4,700 TEU MSC unit. MOL joined as a customer in the first half of 2010.

89 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 89 The facility comprises two container berths totalling 780m and two multipurpose ones of 630m with depths alongside of 60m. Intended primarily as a transhipment port, capable of handling vessels of 9,000 TEU and with an ultimate design capacity of around 2.0mn TEU, it will undoubtedly and probably already has taken the pressure off Port Elizabeth and probably also volume from Durban. Despite its youth, development and improvement work is still going on. Extension of the container berths by another 100m was expected to be completed in mid-2011, thereby allowing 2x 305m vessels to be served at the same time. Prior to that it could only handle a 305m vessel and a 275m one at the same time. Another two berths could be introduced at a later date and in doing so take the current, initial, capacity up from 800,000 TEU to 2.0mn TEU over the long term. In the meantime, planned capacity by 2015 is 1.5mn TEU. At the moment Ngqura is called by the SEAS 2 Far East-East Coast South America service of China Shipping, CMA CGM and CSAV; MOL s CSW (same trade) a nd AOS (West Africa) and by three MSC links (with North Europe; Angola; Far East (Cheetah)). In the first full twelve months of operation it serviced nearly 260 container ships and handled 289,000 TEU. Port Elizabeth Total ESAf annual trade ca pacity, TEU: 286,000 - E.Coast S.Am 8,900 - Far East 88,200 - ME/ISC 49,200 - North Am. 33,600 - N.Eur/Med 103,400 - West Africa 2,800 Total weekly trade connections: 7.3 Avera ge nominal capacity per ves s el, TEU: 3,000 Throughput 2010, all trades, TEU: 325,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Port Elizabeth is located in Algoa Bay and serves the heavily industrialised and intensively farmed hinterland of the Eastern Cape Province. Main cargoes comprise agricultural products and those related to the local motor industry with container cargoes related to those industries. The 480,000 TEU annual capacity Port Elizabeth Container Terminal is situated on the Charl Malan Quay. It disposes of three berths totalling 925m with depths alongside of 11,0m and 12,2m. At one point it was approaching saturation having handled close to 443,000 TEU in Since then its throughput has declined consistently. Even so, it has trade connections along every single trade to/from South Africa but the downward trend may continue given the presence, around 20km to northeast, of Ngqura. East London Total ESAf annual tra de capa city, TEU: 8,000 - E.Coast S.Am - - Far East - - ME/ISC - - North Am. - - N.Eur/Med 7,900 - West Africa - Total weekly trade connections: 1.0 Average nominal capacity per vessel, TEU: 1,900 Throughput 2010, a ll trades, TEU: 53,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Situated at the mouth of the Buffalo River in the East Cape Province, the port of East London is South Africa's only river port. Possessing some thirteen (13) berths, three (3), located within the multipurpose facility, Combi Terminal, can handle containers along their combined 640m quay line. Depth alongside is either 8.5m or 10.4m. It would appear still not be not equipped with ship-to-shore container gantry cranes but can still probably handle around 90,000 TEU a year. Having once been a port of call on the now no longer active SAECS intermediate sling, East London s 2010 container throughput is at apparent odds to its (container) trade capacity it appearing only on the MACS multipurpose service with North Europe. However, it does appear on seven feeder and/ or intra regional services, two (2) of which connect also with Cape Town with another one also linking at Port Elizabeth.

90 90 East Africa & Southern Africa Container Trades Given its proximity to the South African automotive industry it is conceivable that a significant portion of its throughput comes from the related CKD, Complete Knock Down, kits which are increasingly shipped in containers and which are essentially one-way traffic only. Durban Total ESAf annual trade ca pacity, TEU: 991,000 - E.Coast S.Am 29,300 - Far East 420,400 - ME/ISC 238,600 - North Am. 36,800 - N.Eur/Med 197,700 - West Africa 68,600 Total weekly trade connections: 38.5 Avera ge nominal capacity per ves s el, TEU: 2,800 Throughput 2010, all trades, TEU: 2,523,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf The port of Durban is situated on the east coast of South Africa, some 680 nautical miles northwest of Cape Agulhas the southernmost tip of Africa, where the Atlantic meets the Indian Ocean. It is claimed to hold Africa s largest container handling facilities, and whilst this might now be debatable considering developments in Tangier, it is definitely the largest featured here and most likely through sub-saharan Africa. The main facility, Durban Container Terminal, opened in 1977 and stretches over six (6) berths. Prior to 2007 it was situated at Pier 2, but now also encompasses Pier 1, a former breakbulk site. Overall it has an annual capacity of around 3.0mn TEU. The port was widened from 130m to 225m and deepened to 19m at points, this project lasting from mid-2007 through to the first half of The result of this now allows the port to cater for vessels of over 9,000 TEU to enter. However, in common with its compatriots it too suffers noticeable problems that impact productivity. A combination of bad weather, stack congestion and machinery breakdowns led to 5-10 day delays in mid-2011 vii. In 2011 Transnet announced that it was looking to spend up to ZAR 100bn, around USD 15bn, to construct a new, 16-berth and 9.6mn TEU capacity port on coastal land in Durban owned by a third party and the site of what was Durban International Airport. If actually going ahead the different parties have widely varying valuations of the land to be acquired for example this development would actually form part of Transnet s five-year plan. Other plans mentioned are to develop the existing 800m breakbulk handling Maydon Wharf (four berths) to a dedicated container facility. Transnet also hopes to purchase land currently utilised by the South African Navy for development into a 700,000 TEU container terminal. Richards Bay Total ESAf annual trade ca pacity, TEU: 11,000 - E.Coast S.Am - - Far East - - ME/ISC - - North Am. 3,300 - N.Eur/Med 7,900 - West Africa - Total weekly trade connections: 3.0 Avera ge nominal capacity per ves s el, TEU: 1,400 Throughput 2010, all trades, TEU: 15,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf handling capacity is around 5.5 million tonnes. Richards Bay, around 90 nautical miles northeast of Durban and 252 southwest of Maputo, is South Africa's premier and most modern bulk port. It was built in 1976 for the export of coal, and has since expanded into other bulk and breakbulk cargoes. Containers are handled in limited numbers at the 6-berth multipurpose terminal, formed through the merger of the former Bulk Metal and Combi Terminals. Draft alongside varies between 13.5 and 17.5 metres and the annual

91 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 91 As yet it has no dedicated container handling facilities despite plans being mooted in the not too distant past (latter half of the 2000s) with one proposal for a 3mn TEU capacity facility at an initial investment of some USD 230 million 25. Despite its Indian Ocean aspect, the port s sole liner connections are Atlantic based. What is not surprising is that these are provided by multipurpose services in the forms of MACS service to Europe, affiliate Galborg s link with the US Gulf and Canada States Africa Line s loop to Canada and Northeast US, this including Ro/Ro capability. Mozambique Maputo Total ESAf annual trade ca pacity, TEU: 75,000 - E.Coast S.Am - - Far East 69,300 - ME/ISC North Am. 2,000 - N.Eur/Med 3,500 - West Africa - Total weekly trade connections: 7.0 Avera ge nominal capacity per ves s el, TEU: 1,500 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Maputo, Mozambique's capital and located in the very south of the country, has the potential to be one of Southern Africa's major ports being only some 550km from Johannesburg and 405km from Pretoria in South Africa. It was, traditionally, a transit port for the southern Africa hinterland as a whole. The ports and railways of Mozambique have all been privatised with the Maputo Port Development Company (MPDC) now holding the management concession for the eponymous port. Indirectly, MPDC is close to 25% owned by Grindrod of South Africa, it first taking a share in the company in In 2008, DP World of Dubai invested USD 32mn in the company whereby it effectively has an equal share with Grindrod. The remainder is owned by the Government of Mozambique (49%) through CFM, Portes e Caminhos de Ferro de Mocambique (Mozambique Ports and Railways Company), and local partners (1-2%). The original concession awarded to MPDC was to run until 2018, this being extended to 2033 in mid Together with CFM DP World owns DP World Maputo [previously Mozambique International Port Services] in a 60/40 split respectively, this being the container terminal operating company. This terminal has a capacity of 100,000 TEU provided by one berth of 300m that is equipped with two gantry cranes. The container terminal is one of a number of cargo specific terminals with the others handling citrus (operated by Fresh Produce Terminals of South Africa (Capespan)), cars (joint Grindrod/Hoegh Autoliners), bulk sugar, molasses, bagged sugar and coastal cargoes plus the major coal terminal at Matola, this also operated by Grindrod. MPDC has plans to raise up to USD 1bn for expansion projects for the port as a whole with the aim of increasing port capacity by six times over the coming twenty (20) years. This is to be achieved through, amongst others, adding eleven (11) new berths to give a total of 20 and dredging the access channel to give a maximum depth of 15.1m. As a first step since the MPDC concession was extended, a dredging programme of around 4-6 months commenced in September 2010, covering access channels and turning basins to make them accessible to loaded vessels down to 11m. Maputo has been seen as an alternative for a variety of, principally, South African cargoes. BMW trialled the Maputo Corridor as an alternative to Durban with a move of some 200 cars manufactured in South Africa through the Mozambique port in Two years later Nissan was said to have switched its regional hub from 25 See Post Publication Developments September 2011

92 92 East Africa & Southern Africa Container Trades Durban to Maputo and another trial was run by BMW some three years after its first, this one involving over 300 vehicles in both directions The Maputo Corridor Logistics Initiative is looking at promoting the port on the back of it being an alternative to Richards Bay for coal. The port is closer to South Africa s coal mines in Mpumalanga Province and rail links to Maputo s Matola Coal Terminal are being developed further. Having already seen coal cargo volumes increase along this line by more than 150% over they could virtually double again by end-2015 to 30mn tonnes. The MCLI is already being used for citrus exports from that same province plus Limpopo Province and there are claims that exporters could save up to ZAR 5.00 per box by utilising the corridor; quite a saving when around 33,000 boxes are already routed via Maputo according to local South Africa Citrus Growers Association. Such route-ing developments have been made viable due to the combination of faster transit and improved customs procedures. The faster transit has come from investment by Transnet in that it has reduced the turnaround times of trains operating along the Corridor from 200 hours (8.3 days) to 90 hours (3.8 days). This corridor serves parts of South Africa (Johannesburg/Gauteng) plus Swaziland and of course Mozambique. Further afield, a Memorandum of Understanding was signed in 2011 by Botswana, Mozambique and Zimbabwe to construct a hinterland rail system connecting the three. This is to be anchored by a brand new port at the natural deep water harbour of Techobanine a little to the south of Maputo. Outline details are for a USD 7bn project which could start construction as early as Beira Total ESAf annual trade ca pacity, TEU: 25,000 - E.Coast S.Am - - Far East 24,900 - ME/ISC - - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 2.0 Avera ge nominal capacity per ves s el, TEU: 1,400 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Located, approximately, in the middle of Mozambique s coastline, Beira is the second largest city and port in the country. It is around 15 nautical miles from the open sea at the mouths of the Pungue and Buzi Rivers. The port was built to serve what are now Zambia and Zimbabwe, this latter being around 320km to the east. Malawi (southern) is also an important market for Beira, albeit at some 685km away. Since 1949 the port has been managed by Mozambique Ports and Railway Company (CFM), although since the late 1990s Cornelder de Moçambique (CdM) has been responsible for the management of the container and general cargo terminals. CdM is a 67/33 joint venture between Cornelder Holdings of the Netherlands and CFM. The port s 100,000 TEU-capacity multipurpose and container facility (berths 2-5) has a total quay line of approaching 650m. Fishing vessels, general cargo, coal, refined and petroleum products are also handled by the port. Following the recent (end July 2011) completion of dredging work to give the access channel 11m depth and make it 230m wide it can now handle vessels of around 60,000-dwt. This project cost around USD 55mn and was supported financially by the European Investment Bank. Despite its position as Mozambique s second city and port it still has very limited deepsea liner connections although it is also on the schedules of two feeder/ intra-esaf services provided by MSC on one hand and OACL on the other.

93 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 93 Nacala Total ESAf annual tra de capa city, TEU: 60,000 - E.Coast S.Am - - Far East 42,100 - ME/ISC 17,600 - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 3.0 Average nominal capacity per vessel, TEU: 1,900 Throughput 2010, a ll trades, TEU: 71,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Africa), Edlow Resources (Bermuda), Tertir (Portugal) and CFM (Mozambique). The port of Nacala is Mozambique's most northerly port. It is a natural deep water harbour (60m) and sheltered position meaning there are no restrictions on ship movement or size. Given its location, as well as Mozambique it also provides landlocked Malawi to the west with access to the sea albeit through a 915km railway. The operations of both the port and the railway is concessioned to a consortium headed by the American RDC group and including Manica (South The port has two container berths totalling 372m (335/37m split) with depths alongside of 14m and 12m (respectively). Loading and discharging is through via ships own gear although there are a number of pieces of equipment for transferring containers within the terminal. Whilst there have been plans for a new container terminal, nothing concrete appears to be known at the moment although a new coal terminal was confirmed in 2010 as going ahead. At the moment, the port appears on two Far East liner services (CMA CGM and PIL) and one Middle East/Indian Subcontinent link (CMA CGM). It is also a port of call on two intra regional services of MSC and Maersk (OACL). East Africa Overview The smallest subset in numbers, i.e. four (4) ports only appearing on the deepsea schedules. East Africa s representatives still account for a not unreasonable 22% of the ESAf region s trade capacity. Of that the Kenyan port of Mombasa is the largest at 424,000 TEU and outstrips the combined capacities of its three neighbouring Tanzanian ports to the south, running southwards: Tanga, offshore Zanzibar and Dar Es Salaam. This latter, also being the capital of Tanzania, is by far the largest gateway in that country. With the exception of a marginal capacity allocation to and from the Mediterranean, this coming from Messina Line s Container-Ro/Ro service, the four ports direct trading relationship is purely with the Middle East and Indian Subcontinent on one hand, this accounting for 55% of their trade capacity, and the Far East on the other (44%). All told these ports receive twenty-seven/eight (27/28) calls per week which translates into thirty-six (36) trade connections on average each week. Again Mombasa and Dar Es Salaam dominate in these regards. Mombasa, Kenya Total ESAf annual trade ca pacity, TEU: 424,000 - E.Coast S.Am - - Far East 187,700 - ME/ISC 232,800 - North Am. - - N.Eur/Med 3,500 - West Africa - Total weekly trade connections: 16.0 Avera ge nominal capacity per ves s el, TEU: 1,800 Throughput 2010, all trades, TEU: 696,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf The only substantial port under the Kenya Ports Authority (KPA) banner it counts not only Kenya within its hinterland but also and in particular Democratic Republic of Congo, Rwanda, Southern Sudan and Uganda. Other areas it could serve include Burundi, Ethiopia and northern Tanzania. Container throughput in 2010 was 696,000 TEU, up 12% on 2009 and two-thirds of which were counted as full. In 2010 in tonnage terms 28% of the port s total 18.9mn tonnes was transit cargoes. Uganda cargoes alone accounted for 4.2mn tonnes (70% of transit). Noteworthy is that KPA has a liaison office in Kampala, capital of Uganda.

94 94 East Africa & Southern Africa Container Trades The port has been undertaking a number of general and container specific projects being wary of what it perceives its increasing status as a feeder perhaps spoke would be more appropriate destination in light of the transhipment connections from Salalah, Singapore, Port Tanjung Pelepas and Durban amongst others. The general projects have seen the implementation over the past decade (i.e. up to 2010) of a number of IT systems from the widespread administrative SAP to more specific terminal operating systems. In terms of port infrastructure it has been refurbishing three container berths (16-18), in particular berth 18, at a cost of (converted) USD 15mn. Work started in October 2010 and is projected to last around eighteen (18) months. Together with work on berth 19, it will be lengthened by 160m to total 760m. At a cost of around USD 67mn with completion scheduled in 2013 this particular phase is being carried out by China Road & Bridge Corporation. The KPA predicts that this development will increase port capacity to around 800,000 TEU. A second, 1.2mn TEU terminal of two berths of 900m will be constructed following confirmation it would go ahead in The whole project, which has been ongoing since 2007, has been placed out for tender with much assistance from Japanese institutions and, eventually, companies. The initial design work was undertaken with soft loan assistance from the Japan International Cooperation Agency (JICA) and 80% of the funding for the total USD 250mn development costs will come from the Japanese International Bank for Cooperation. The tender process has been overseen by Japan Ports Consultants Ltd and JICA and three bids were submitted, these coming from Japanese companies: TOA Corporation, Toyo Construction and Penta Ocean. With the 450,000 TEU Phase I initially pencilled in for 2013, the whole development is planned to be on line in In the meantime and to cope with demand, the KPA already indicated in 2010 it would make berths available for another container terminal, the so-called East Container Terminal, including with private sector involvement. Indeed, a later report by a Canadian consultancy firm, CPCS Transcom, recommended greater involvement of the private sector through Public Private Partnerships at large whereby KPA would remain the landlord but services and/or facilities would be developed, built and operated by private companies. Included specifically was the development of berths as a small privately operated terminal under a 25-year Build-Operate- Transfer agreement to fill the hiatus caused by too low capacity to meet the high demand. Preparatory work connected with the second terminal is advanced with Van Oord Dredging and Marine Contractors awarded the USD 62mn contract to deepen the ports access channels to 15m and widen the turning basin too. Work was expected to start in mid-2011 and last to end-2012/start Although an announcement as to who had won the 1.2mn TEU terminal contract was expected in June 2011 there has been delay following a number of issues (concerns) surrounding the bidding process. Alongside this, the port and Authority has been affected by a court case, opposition from unions and a labour dispute earlier in the year, with vessels being delayed for up to one week in some cases. Some if not all these are thought to be ultimately connected with the involvement of the private sector in the development (of berths 11-14), seen locally as privatisation, although a number of reports at different points in 2011 have indicated that the government has backtracked on plans on privatising the port of Mombasa. Even without such interference, and the completed investments to date notwithstanding, the port is afflicted by production delays, caused in part by the repairs at berth 18 with one report indicating that the general cargo berth moved at 6.5 containers offloaded per hour instead of the targeted 25 viii. In mid-2011 and following other problems as the IT customs clearance system crashing, there were reports that, in the wake of up to 7-9 day long delays, some carriers, but not all, were considering port specific congestion surcharges. 26 See Post Publication Developments August and September for further developments.

95 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 95 These aside, the local belief on the part of the carriers is that there is simply a lack of capacity. This is something the KPA also agrees with, as Mombasa handles way more than its design capacity of around 250,000 TEU. Lamu, Kenya In September 2010 the Kenyan government launched the bidding process to develop the USD 3.5bn Lamu Island port following a feasibility study that was carried out by Japan Port Consultants. To be constructed at Manda Bay, when complete, it will have a capacity of nearly 24mn tonnes per year and be the country s second port, capable of handling container vessels of up to 100,000-dwt. Part of a total corridor and Lamu Island investment of USD 22bn, it will be alongside and hinterland infrastructure developments such as warehouses, railway sidings and roads. It is though the port which will be the cornerstone of the envisaged Lamu Port-Southern Sudan-Ethiopia (LAPSSET) corridor. Finance for the whole project will come from a range of sources, including public-private partnership. Both China, who had already offered USD 15-16mn in development funding in 2010, and Germany have had their interest in providing possible financing reported. Whilst further details are still to be forthcoming, perhaps a little ambitiously the Kenyan President was quoted at the end of July 2011 that construction should start by year s end with the first vessel calling by However, the bulk of construction along the whole corridor is currently pencilled in for This entire project forms part of Kenya s larger Vision 2030 programme of infrastructure and development. Dar Es Salaam, Tanzania Total ESAf annual trade capacity, TEU: 314,000 - E.Coast S.Am - - Far East 157,200 - ME/ISC 153,000 - North Am. - - N.Eur/Med 3,500 - West Africa - Total weekly trade connections: 13.0 Average nominal capacity per vessel, TEU: 1,800 Throughput 2010, all trades, TEU: 406,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf direct competition with Mombasa in particular. This is the main port of the national Tanzania Ports Authority, this being established in The other ports it controls are Mtwara and Tanga, with Zanzibar falling outside of its remit, this island being a semiautonomous part of the country. Dar Es Salaam, also the capital of Tanzania, handles around 95% of the country s international trade and also serves the hinterland countries of Burundi, Democratic Republic of Congo, Malawi, Rwanda, Uganda and Zambia. Quite clearly this brings it into The port has a general cargo terminal, grain terminal, passenger facilities and a container terminal. This latter is operated by Tanzania International Container Services (TICTS) which despite its ICTSI looking name is currently controlled by Hutchison Ports as majority owner. Initially operated by ICTSI, who was awarded the original ten- (10) year concession in 2000, it was one of a number that ICTSI sold the following year to Hutchison. The terminal has three berths totalling 550m with a depth alongside of 11.5m and three quayside cranes. It has a capacity of 500,000 TEU. The concession was extended by another twenty-five (25) years which could be seen as fortuitous considering the displeasure expressed by the authorities as to the productivity and performance of the container terminal, in particular, in However, they conceded that progress has been made through 2010 with average vessel dwell times reduced from twenty (20) to four (4) days ix. 27 See Post Publication Developments September for further developments.

96 96 East Africa & Southern Africa Container Trades In mid-2011 the Tanzania Ports Authority announced that USD 520mn was to be spent on developing two new container terminals with a combined capacity of 1.2mn TEU at the port with construction to start by This would seem to incorporate earlier reported, mid-2010, plans for a 600,000 TEU new terminal. Hutchison, apparently, will be unable to bid for these; in 2009 agreement was reportedly reached that would see the TICTS monopoly on handling containers in the port removed. At a more abstract level, APM Terminals was quoted early in 2011 as being keen on assisting the Tanzanian Government, for example, in developing Dar Es Salaam s competitive advantages as a gateway port for landlocked East African countries x. Tanga, Tanzania Total ESAf annual trade ca pacity, TEU: 34,000 - E.Coast S.Am - - Far East 18,900 - ME/ISC 15,000 - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 4.0 Avera ge nominal capacity per ves s el, TEU: 1,700 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf One of the smaller of the three ports under the Tanzania Ports Authority, it is located around km to the north of the country s capital and main port, Dar Es Salaam, and is close to the border with Kenya. Facilities at the port are limited to a single multipurpose jetty with depth alongside of 11.0m. Extensive use of lighters is made and it possesses a couple of mobile cranes of 40 tonnes and 63 tonnes capacities. Its trade connections are provided by two services that connect with the Far East plus another one which is Indian Subcontinent/Middle East based. Zanzibar, Tanzania Total ESAf annual trade ca pacity, TEU: 47,000 - E.Coast S.Am - - Far East - - ME/ISC 46,900 - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 3.0 Avera ge nominal capacity per ves s el, TEU: 1,900 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Zanzibar is an offshore semi-autonomous region of Tanzania approximately 35km across the Zanzibar Channel from mainland Tanzania and 60km to the northeast of Dar Es Salaam. Comprising two main islands, Unguja, the largest, and Pemba, plus a number of smaller ones, Zanzibar claims a few ports, these being controlled by the Zanzibar Ports Corporation. Zanzibar (City) is the capital of the region and located on the eastern shore of Unguja facing the mainland. The port there has two main berths of around 250m and 100m with depths alongside of 6-9m. It is only designed to take vessels of around 10,000-dwt. For all that, the port has a not unreasonable allocated trade capacity, this coming from three services that are all Indian Ocean based connecting as they do with the Middle East and/ or Indian Subcontinent.

97 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 97 Indian Ocean Ports Whilst numerous in that there are seven (7) different outlets amongst this subset, they are disparate and small receiving around 11% of allocated trade capacity in total. Given that they are island nations or territories, Madagascar s size notwithstanding, they could be considered small in most respects, this is not a surprise. That Port Louis in Mauritius receives over 40% of the Indian Ocean Islands 440,000 TEU total capacity could be. The other ports comprise Toamisina (Tamatave) in Madagascar; Port Reunion, sometimes referred to as Port des Pointe des Galets, in Reunion 28 ; Port Victoria (on Mahe), Seychelles; Longoni (Mayotte) and Mutsamudu on Comoros although this only receives, on average, less than one call per week appearing on one service schedule only. Whilst some limited trade capacity is provided in the form of a southbound link to two of the ports from MSC s longer North Europe-Australia service, for the rest these island ports have exclusive trading relationships with the Far East which accounts for over 69% of their capacity, and their neighbouring Indian Ocean rim region of the Middle East and Indian Subcontinent from where virtually all the rest comes. The port profiles are ordered running anti-clockwise from Seychelles in the north, moving south and west to Comoros first before moving eastwards to Mayotte and again, but also further south, to Madagascar carrying on deeper into the Indian Ocean to Reunion before turning north a little, but continuing eastwards, arriving at Mauritius. Victoria (Mahe), Seychelles Total ESAf annual trade ca pacity, TEU: 34,000 - E.Coast S.Am - - Far East 7,800 - ME/ISC 26,200 - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 2.0 Avera ge nominal capacity per ves s el, TEU: 1,600 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf other. This port is located on the largest island of the Seychelles group, Mahe. A multipurpose port handling Ro/Ro (Hoegh Autoliners called the port early in 2011), dry bulk, general cargo and containers, this latter is handled via the general cargo berths and using ships own equipment. Victoria appears three times as a one-way call on Middle East/ Indian Subcontinent services and once in the same manner on a Far East link. CMA CGM is the main carrier providing three of these four (one-way) links, Maersk the Mutsamudu, Comoros Total ESAf annual trade ca pacity, TEU: 6,000 - E.Coast S.Am - - Far East - - ME/ISC 5,500 - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 0.5 Avera ge nominal capacity per ves s el, TEU: 1,700 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Located on the island of Anjouan it is the largest port in the island group in terms of size of vessels that can be handled. It has two quays of total length 330m (250/80 split) with the first 170m or so for container vessels and general cargo. It appears only once on the deepsea shipping schedules, that being DAL (UAFL s) Middle East service running between the Middle East-Indian Ocean Islands- East Africa. Despite reports of a Memorandum of Understanding being signed in mid-2010 between HSS of Dubai and the port of Moroni, also part of Comoros, regarding a USD 28 Pointe des Galets can refer to the terminal although it is also now a suburb or ward of Le Port, one of the communes of Reunion

98 98 East Africa & Southern Africa Container Trades 385mn project to develop four berths there for both passengers and cargo, nothing further has been heard of this project. Longoni, Mayotte Total ESAf annual tra de capa city, TEU: 26,000 - E.Coast S.Am - - Far East - - ME/ISC 26,200 - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 1.5 Average nominal capacity per vessel, TEU: 1,800 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Longoni is situated on the main island of Mayotte, Mahoré. Mayotte is an overseas department (department d outre-mer) of France. The port facilities are split between those Longoni and Dzaoudzi, the former capital. In Longoni there is a general pier of 130m and 11.5m depth alongside with a much smaller and shallower coastal pier. Cargo movements are entirely by ships own gear. At a total area of around 375sq.km the demand for extensive shipping services is equally limited and comes from it being called on three separate Indian Subcontinent/Middle East services, effectively all three in a one-way direction. Toamasina (Tamatave), Madagascar Total ESAf annual trade ca pacity, TEU: 104,000 - E.Coast S.Am - - Far East 57,700 - ME/ISC 46,500 - North Am. - - N.Eur/Med - - West Africa - Total weekly trade connections: 5.0 Avera ge nominal capacity per ves s el, TEU: 1,600 Throughput 2010, all trades, TEU: 141,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf and 4 mobile cranes. Toamasina is the main port on the island and is controlled by the state Société du Port à Gestion Autonome de Toamasina (SPAT, or Toamasina Autonomous Port Authority). Located on the eastern coast of the island it is the principal port for the country. The container terminal is managed and operated by ICTSI through the Madagascar International Container Terminal. It has one berth of 307m total comprising two berthing slots and disposes of four (4) rubber tyred gantry cranes The port appears on five (5) service rotations in total, three (3) connecting with the Far East and the rest with Middle East and/ or Indian Subcontinent. Ehoala, Madagascar A new multipurpose port development on the southern tip of Madagascar, it is jointly financed by mining giant Rio Tinto (USD 240mn) and the local Malagsy State (USD 35mn). Developed in the latter half of the 2000s it is principally aimed at serving the nearby Rio Tinto mine but also includes a 150m long multipurpose berth albeit with limited depth alongside of 8m. Operational in early 2009 a little later it was placed on CMA CGM (Delmas) s MOZEX from the Far East to East Africa. At the moment it would only seem to be a regular scheduled feature on Mauritius Shipping s local Coraline service which itself only provides a call there once every two/three weeks on average. Port d Ehoala handled 3,700 containers in its first year of full operation to mid-2010.

99 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 99 Port Reunion (Reunion) Total ESAf annual tra de capa city, TEU: 66,000 - E.Coast S.Am - - Far East 37,800 - ME/ISC 23,300 - North Am. - - N.Eur/Med 4,900 - West Africa - Total weekly trade connections: 3.0 Average nominal capacity per vessel, TEU: 2,700 Throughput 2010, all trades, TEU: - Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Port Reunion is also known as Pointe des Galets, this being the original Old/West Port established in 1886, One hundred years later the New/East Port was established. Together the whole organisation has been known as Port Reunion, this being the case since Managed and operated by the Chambre de Commerce et d Industrie de la Réunion, it comprises a cargo port, yachting marina, fishing port, cruise port of call and naval base. The cargo facilities cater for bitumen, cereal, containers, hydrocarbons and sugar in particular. Containers are handled in the New/East port from two berths totalling 470m although these are not exclusive berths in this regard as vehicles are also handled there. The port has three 40 tonne gantry cranes and storage for 8,000 TEU including over 220 reefer plugs. Port Reunion currently appears on the schedules of two Far East services (one essentially being a westbound call only from the Far East), two Middle East/Indian Subcontinent links (again, both being, essentially one-way) and is also a southbound wayport call on MSC s North Europe-Australia service, hence the relatively high average vessel size. The other mainline carriers calling are Maersk/Safmarine, CMA CGM and PIL. Finally, it is also on the schedule of DAL/UAFL s Island Express service between Durban and the Indian Ocean islands. Undoubtedly any outbound containers, full or empty, can be (re)positioned there for transhipment to the deepsea leg. Port Louis, Mauritius Total ESAf annual trade ca pacity, TEU: 204,000 - E.Coast S.Am - - Far East 175,800 - ME/ISC 23,300 - North Am. - - N.Eur/Med 4,900 - West Africa - Total weekly trade connections: 5.5 Avera ge nominal capacity per ves s el, TEU: 2,600 Throughput 2010, all trades, TEU: 412,000 Differences may occur due to rounding Trade capacity is one-way and ESAf-rest of the world trades; throughput is two-way and includes transhipment and intra-esaf Port Louis has the Mauritius Port Authority as landlord. Cargo Handling Corporation Ltd (CHC), described as a private company with state shareholding, has the concession for port handling operations covering containerised, dry bulk and general cargoes. There is a proposal, however, to divest the state s interest in CHC. The container handling facilities are provided by the Mauritius Container Terminal which started operations in It has a berth line of 560m, depth of 13m and five (5) ship-to-shore cranes. The multipurpose terminal has a total quay line of 1,200m and handles bulk cargoes and fish as well as general. The port has been trying to establish itself as a transhipment centre and would appear to be relatively successful given its throughput and current trade connections. DAL, for example, uses the port for Madagascar and Mayotte cargoes it will have carried southbound from North Europe. This is through slots on MSC s Europe-via Suez/Indian Ocean-Australia service. Port Louis also appears on six (6) service rotations offering connections to and/ or from the Far East, with another two (2) Middle East/Indian Subcontinent services and around five (5) intra services connecting, for the most part, with other Indian Ocean islands although one extends all the way to South Africa.

100 100 East Africa & Southern Africa Container Trades Global Terminal Operators active in ESAf There are only a few, and in that regard notable private terminal operations within the ESAf region. Regular remark is made from non-governmental organisations of the need to develop sub-saharan Africa s infrastructure of which ports and specifically container terminal facilities are of course part. Given the heavy presence of the state sector in developing and/ or operating/ managing such facilities in the ESAf region, coupled with the relatively low turnover of container traffic in comparison with other parts of the world, the apparent requirement for such development on the one hand and the scope for private sector participation on the other, has been limited. APM Terminals For example, APM Terminals, part of the greater A.P. Møller Maersk group and therefore an affiliate of Maersk Line and all other operations within that group, operates a global network of around fifty (50) terminals and one hundred and twenty (120) inland facilities in sixty-four (64) countries. It is, in fact, considered the largest operator in sub-saharan Africa with facilities located in Abidjan, Lagos/Apapa, Douala, Luanda, Monrovia, Onne and Tema. All though are West Africa. It has another one Africa terminal under development (Pointe Noire, Congo) with, again, no representation in the ESAf region. APMT was, however, reported earlier in 2011 to be keen on assisting the Tanzanian Government, for example, in developing Dar Es Salaam s competitive advantages and had expressed an interest in the new terminal development (then under study) for Mombasa xi. Intentions aside, those private terminal operators active in the ESAf region, in summary, and by way of crossreference with what has been written above, are, in alphabetical order: DP World Headquartered in Dubai it has grown quickly to be involved in nearly fifty (50) terminal projects worldwide with another nine (9) or so under development all spread over more than thirty (30) countries. In 2010 its facilities handled approaching 50 million TEU. In ESAf it is present in: Mozambique o Maputo, DP World Maputo - DP World effectively owns 60% with Mozambique Railway (CFM) owning the rest. DP World also has a significant minority holding in the overall port development company for Maputo with Grindrod of South Africa owning an equal share and CFM virtually all the rest. The initial concession for the port development ran up to 2018 which was extended, in 2010, to The DP World Maputo Container Terminal has a single berth of 300m, two gantry cranes and an area of 13ha. Annual capacity is 100,000 TEU. Hutchison Port Holdings Hong Kong based HPH is part of the larger USD 42 billion turnover Hutchison Whampoa group (also including property; retail; energy, infrastructure, investments; telecommunications). HPH itself can trace its history back to the 1860s and the establishment of the Hongkong and Whampoa Dock Company. With facilities located in the Far East, Latin America, Europe, Middle East and Australia, including airports, cruise terminals, repair facilities and others, in 2010 HPH handled 75 million TEU. In ESAf its activities are limited to: Tanzania o Dar Es Salaam, Tanzania International Container Terminal Services - majority acquired by Hutchison from ICTSI of the Philippines in the early 2000s. Three berths provide a total quay line of 550m and depth alongside of 11.5m. As well as three (3) gantry container quay cranes

101 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 101 are another thirteen (13) rubber tyred gantry cranes. Total terminal area is 12ha and it also has 76 reefer plugs. Capacity is 500,000 TEU. International Container Terminal Services Inc ICTSI is relatively new being established in the late 1980s and also one of the rare multinational terminal operators outside of the traditional economic and shipping power blocs, originating as it does in the Philippines. With six (6) such operations in its home country, it is involved in another sixteen worldwide, these being located in Latin America, Southeast Asia, Northeast Asia, North Europe, Mediterranean and North America as well as ESAf where it is located in: Madagascar o Toamasina, Madagascar International Container Terminal - ICTSI holds the 20-year concession on this terminal, this being awarded in 2005 on a develop, finance, manage and rehabilitate (repair) basis in a public-private partnership with the local port authority SPAT. The overall area under management includes 1 berth of 307m, a terminal area of 12ha. and depth of 10-12m It used to be the holder of the Dar Es Salaam concession but sold this to Hutchison in the early 2000s as part of a wider sell-off of facilities. Bolloré Africa Logistics Not a global terminal operator, but a particular force in African logistics business and therefore to be mentioned here is Bolloré Africa Logistics. Amonst others, it is involved in terminal operations in no less than 11 African ports, all but one (Libya) in West Africa. In alphabetical order they are in Abidjan, Conakry, Cotonou, Douala, Freetown, Lagos/Tincan, Libreville, Lomé, Pointe Noire, San Pedro and Tema. Jointly those facilities handled nearly 3 million TEU in In East and Southern Africa, Bolloré s activities have so far been restricted to terrestial transportation and forwarding (including projects), as well as that of an operator of corridors (see the next chapter) out of Mombasa and Dar Es Salaam. General For all referred to (global) terminal operators, and probably others such as PSA International too, goes that they would be highly interested to participate in port and terminal operations in South Africa. Privatisation of container terminals has been an issue there in the early part of the 2000s and basically the South African government is committed to a policy of public private partnership (PPP) at the least. However, Transnet National Port Authority and its operating arm Transnet Port Terminals (South Africa Ports Operations, SAPO) have so far been succesfull in keeping privatisation out.

102 102 East Africa & Southern Africa Container Trades Logistics corridors In contrast to the highly integrated matrices of rail and inland waterway networks found within Europe and North America whereby virtually every port of substance can provide links to it s own natural hinterland and beyond, in Continental Africa connections to and from landlocked countries is through specific corridors. These are, and have been, worthy of separate and extensive publications and studies in their own rights. Whilst not the focus of this publication they are important in the context of these anchor ports that the shipping lines call and undoubtedly part of the reason behind why. For those 100mn people within the landlocked countries of the ESAf 29 region, a collective market of around USD 1,020bn 30 such corridor links are vital. They are however expensive with one source estimating the cost of moving a container from Durban to Lusaka, Zambia, to be in the region of USD 8,000 xii. Figure 1: Overview of main trade and transit corridors in ESAf Table 37: Summary details of main trade and transit corridors in ESAf Port # Corridor Route Notes Walvis Bay 1 Trans-Caprivi Walvis-DR Congo 2,100km with limited rail option only in Namibia Walvis Bay 2 Trans-Kalahri Walvis-Botswana, South 1,900km through to Johannesburg, mostly Africa road with limited rail in Namibia Luderitz 3 Trans-Oranje Luderitz-South Africa Luderitz and Walvis Bay mostly road based corridor of 860km to Northern Cape province Dar-Es-Salaam 4 Central DarES-Burundi-Rwanda- Depending upon destination road or road and DR Congo rail. If Lake Victoria transport operational/viable, Uganda could also be served Dar-Es-Salaam 5 Southern DarES-Zambia Provided principally through TANZARA (Tanzania-Zambia Railway Authority and by which acronym this corridor is sometimes known), with other connections to Zambian, Malawi and Zimbabwe rail networks Mombasa 6 Northern Mombasa-Uganda- Rwanda-DR Congo Multimodal corridor which also includes inland waterway (lakes) options Maputo 7 Maputo Maputo-South Africa Around 600km road and rail link to offer, principally, an alternative for Johannesburg and the Northeastern part of South Africa Beira 8 Beira Beira-Zimbabwe Another fairly short corridor although limited by road, rail and port constraints (connections) 29 Botswana, Burundi, Lesotho, Malawi, Rwanda, Swaziland, Uganda, Zambia, Zimbabwe 30 Figures as for end-2010 based upon IMF World Economic Outlook, April 2011, database; GDP at current prices.

103 EAST, SOUTHERN AFRICA AND INDIAN OCEAN ISLANDS PORTS OF CALL 103 Nacala 9 Nacala Nacala-Malawi-Zambia Road/rail corridor which has received Africa Development Bank Funding for road improvements Durban 10 North-South Corridor Programme Durban-Zimbabwe- Zambia-DR Congo Ambitious corridor development to link, in particular, the DR Congo/Zambia copperbelt. Depending upon route-ing options can also link with Botswana. Intended to be a multimodal corridor. Notes: This table (and accompanying figure) is by no means meant to be comprehensive and covers the main corridors only. Some may not have been included for reasons of geography such as the Trans-Cunene Corridor which links Namibia (Walvis Bay) with Southern Angola or perhaps relevance to this publication such as the Mtwara Corridor from the Tanzanian port of the same name into northern Malawi Those indicated are straight line representations only, intended to give an indication of the general corridor only and not the individual and specific route-ings Whilst a port can itself experience capacity problems, congestion and so on, and there have been examples of this noted within the ESAf region, an effective and efficient port can still be rendered, at best, less attractive if once cargo has left the port to move inland, or vice versa, the same cargo gets caught in low volume and poor quality transport and logistics infrastructure. Lines on a map whilst indicating a presence, be they representative (drawn) lines or those actually forming part of a map to show road and rail links, give no indication as to the state of such infrastructure. In this regard it is worth repeating that many of the ESAf countries themselves are still developing nations. Much of ESAf s road network, especially outside of South Africa the country, is not paved, tarmaced or similar. In mid 2010 the African Development Bank and Japan International Cooperation Agency combined to provide much of the USD 350mn being spent on tarring inland roads including a 260km section of the Northern Corridor. With regards to railways a common remark is the lack of either workable rolling stock or, related, spare parts, or cash even. For example, TAZARA, whilst established with good intentions and principles has required substantial financial assistance to keep going. This comes on top of trans-national issues. For example, rail links along a corridor can have different gauges. Alongside the state of landside infrastructure, including from dock to ultimate start/end point, integral to any logistics chain are the operations of (container) depots and warehouses and of course the smooth transit of officialdom, i.e. the customs and not unrelated border authorities. For the landlocked countries, corridors are their lifeline. Considering the troubled history of many countries in the region they have effectively been forced to develop alternative corridors when a preferred option may have been impacted by security issues. Whilst for them a matter of necessity therefore, the transit countries and ports they host are seeing the commercial side of the development of corridors as providing the potential to compete with each other for the landlocked countries or neighbouring hinterland markets. Although the South African province of Gauteng is 1,400 kilometres away from Walvis Bay, it is claimed that using a Walvis Bay anchored corridor, two to five days of transit time for time sensitive goods could be shaved off compared with shipment via Cape Town or Durban. Hinterland developments could see Beira in Mozambique turning into also attractive as an alternative gateway for Zambia following development of a new inland rail line from Zambia to Lion s Den in Zimbabwe. If extended to or from, Beira, it would be the shortest rail corridor between Zambia and the Indian Ocean. Tanzania is in fact trying to attract shippers and importers to use the Central Corridor which anchors on Dar Es Salaam as an alternative to the Northern Corridor; only 5% of Ugandan ocean cargo is estimated to be handled by Dar Es Salaam xiii.

104 104 East Africa & Southern Africa Container Trades These developments will only work if the transit through the corridors is quicker, smoother, reliable and value for that. The efficiency comes from, amongst others, the capacities of the various forms of infrastructure (road, rail, ports) and the various interchanges along the way; the maintenance and upgrade of all the same and the related handling and transport machinery; unified transport regulations including those covering documentation; ditto customs regulations and across all, simplification of processes and procedures. Finally, and an echo of statements made with regards to the region s ports is the reduced direct operations of the state organisations and so-called parastatals 31 throughout. Unlike the hinterland networks of Europe and America, Africa s corridors have a variety of (semi-) formal statuses. Some were established by treaty (Northern Corridor), company registration (Maputo) or Memorandum of Understanding (Trans-Kalahari) amongst others and then with their own administrative/management organisations, if at all. On one side, the Dar Es Salaam Corridor has no corridor administrator or secretariat, although this is more of an exception. One example of an existing secretariat is the Northern Corridor Transit Transport Coordination Authority. Perhaps pointing to the future is the 2004 established Maputo Corridor Logistics Initiative which is a publicprivate initiative. Similarly there is the 2000 established Walvis Bay Corridor Group. It groups Walvis Bay s various transit corridors are actually under one organisation but through which there are separate Corridor Management Committees. It may also be coincidence, but these two are pretty much the most visible in the region too. 31 Transnet of South Africa is an example of such.

105 BACKGROUND ECONOMY, TRADES AND COMMODITIES 105 BACKGROUND ECONOMY, TRADES AND COMMODITIES Commodities, cargoes and flows East Africa and Indian Ocean South Africa is clearly the dominant economy within East Africa, Southern Africa and the Indian Ocean Islands. Its ports account for 65% of this composite region s port throughput. Some 60% of the region s total merchandise trade, by value 32, is South African (the country) and by one measurement of GDP, South Africa s individual economy accounted for 68% of the regional whole 33. In terms of this latter, if current forecasts pan out then come end 2014 South Africa will still be dominant with 65% of the regional economy. This concentration of trading and economic wealth notwithstanding, the neighbouring countries still make significant contributions to the whole and all have their particular strengths, weaknesses but above all, potential. Indeed, Kenya, Mozambique and Zambia are all expected to exhibit significant economic growth patterns both absolutely and relatively (% wise) come Already, the continued growth of Africa liner trades, in general, has helped mitigate sluggish growth, or worse, on more mature trades. This has been noted not only for West Africa but also Southern and Eastern Africa. This has been moved forward by growth in food commodity cargoes such as palm oil, sugar and rice, these all being westbound cargoes from the Far East. Indian companies, for example, have been said to have purchased companies all over Africa, including in Kenya, Madagascar and Mozambique to grow rice, maize and sugar cane amongst other items xiv. It is such agricultural and plantation like commodities in lieu of vast quantities of minerals or fossil fuels that are important for the East Africa and Indian Island countries cargoes. For Tanzania cashew nuts provide 5% of export earnings and for the year to February 2011 it exported close to 125,000 tonnes, an increase of 107% over In Uganda, exports of cocoa beans, more usually associated with West Africa, have risen by 130% over four years to around 13,800 tonnes over the 2008/9 season xv. However, and most of all it is the (East Africa) region s exports of tea and coffee that are particularly noteworthy. Table 38: Exports of Tea from Kenya Year Exports, kg x mn Growth 28.6% -10.7% 10.9% 10.2% -10.3% Based upon data sourced from Tea Board of Kenya Over 95% of Kenya s tea production is exported, albeit for the most part in bulk xvi. Coffee, on the other hand, is (occasionally at least) containerised or if not, containerisable. Table 39: Exports of Coffee from ESAf countries Year Burundi 299, , , ,100 Kenya 539, , , ,500 Madagascar 58,200 39,600 19,400 99,500 Malawi 1,200 17,600 20,600 18,900 Rwanda 394, , , ,900 Tanzania 564,300 1,187, , ,200 Uganda 2,656,500 3,014,400 3,310,700 2,693,200 Zambia 26,800 32,500 48,500 53,700 Zimbabwe 11,500 19,300 23,100 32,400 ESAf Total 4,551,000 5,428,000 5,419,000 5,128,000 Global Total 96,761,000 96,136,000 97,522,000 96,249,000 ESAf share 4.7% 5.6% 5.6% 5.3% , WTO figures , IMF figures, including some estimates, based upon USD at current prices

106 106 East Africa & Southern Africa Container Trades Figures are 60kg bags Based upon data sourced from International Coffee Organisation The Indian Ocean Islands have a slightly different dynamic to East Africa as could perhaps be expected for island countries and the lifeline like nature of any shipping services. Whilst Mauritius exports commodities as sugar, primarily, plus tinned tuna fish and textiles, its import cargoes include consumer products, foodstuffs (including chilled), wines and spirits, construction materials and machinery. Madagascar exports food related items such as cloves, spices, vanilla, frozen fish as well as textiles but imports can include specific cargoes as used clothing. Reunion, a French Overseas Territory, counts sugar as a major export for example, whilst a significant amounts of household effects are moved both in and out xvii. Lifeline items are not necessarily the preserve of the Island nations however. Commodities reported as being transported along the Walvis Bay corridor between Namibia and landlocked Zimbabwe includes frozen chicken, furniture, equipment, vehicles and consumable items xviii. Commodities, cargoes and flows Southern Africa And yet, for all the above on the East Africa, landlocked and island trades, it is still to and from Southern Africa that the more substantial cargoes flow. This is not only South Africa the country. Coal reserves in Moatize, Mozambique, are estimated at over 1.0bn tonnes. That country is, as a whole, looking at and should be benefitting from the increased demand for raw materials in India and China. Included in that, its Indian Ocean aspect is a definite advantage and may well help explain the investment in the country undertaken by mining giants as Rio Tinto and Brazil s, Vale, a great supplier to China. South Africa also has its own mineral and natural resources for which the ports of Richards Bay and Saldanha are important. In terms of other cargoes South Africa is known for its citrus fruit exports, these being, essentially, grapefruit, lemons, oranges and soft citrus (clementines, satsumas and similar). Whilst containers are being increasingly used, conventional reefer ships are still used too. They are busiest carrying South African fruit between January and September during the off-season they carry general cargoes although for other fruit, such as grapes, its exporting season is November-February. This is one fruit cargo that shippers prefer containerised as it ensures a continuous, unbroken, supply chain from origin to destination, unlike with palletised cargo. To give an indication of cargo volumes generated by the export of fruit, market, one shipper organisation [forwarder], Horizon Fruits, moves around 8,000 TEU per year on behalf of its investor partners and for which it makes use of both SAECS and MSC as the main export market is North Europe, especially UK xix. With regards to the table as at right, the indicative TEU equivalent is indeed that: indicative. As the end of the 2010 season approached, the Citrus Growers Association of South Africa indicated that less than 5% of Durban s throughput, this still being the largest port handling South Africa s citrus exports, Table 40: Exports of Citrus Fruit from South Africa Year Pallets shipped x mn Approx. TEU equivalent 130, , ,000 Figures in italics are estimated Conversion rate of an average of 20 pallets per 40ft container Based upon data sourced from Citrus Growers Association came from this sector. Based upon that port s 2010 s throughput this would, for the whole year, still only be 116,000 TEU. For half a year therefore, to reflect an approximate season this would be 58,000 TEU. Alongside Durban as the main export ports are Cape Town, Port Elizabeth and Maputo in that order. Of those, and with an eye to it being a viable potential for those shippers in the Northeast of South Africa, Maputo

107 BACKGROUND ECONOMY, TRADES AND COMMODITIES 107 handled around 5% of those pallets in 2010 with reefer shipping companies Baltic Reefers, NYK and Seatrade together, and Seatrade individually, providing conventional reefer links. In general, the largest export market is Northwest Europe, including the UK. Although counted separately, if Eastern Europe/Russia and Southern Europe/Mediterranean were combined with Northwest Europe then Europe/Mediterranean/Russia would have around a 70% market share of South Africa s citrus exports. The Middle East and Far East would probably combine to account for approaching 20% of all exports leaving the rest, essentially, exported to US and Canada xx. Alongside citrus, another important part of this relationship is the car industry. Ford, Mercedes Benz and BMW at least all have facilities in the country. Usually components shipped into South Africa for assembly with the complete cars then re-exported around the world, including back to Europe. It is not without its challenges however. Exports were actually estimated to have fallen by around 40% in 2009 due to a combination of the global economic situation and low-cost manufacturing competition from the Far East. By way of example, in early 2011 BMW was apparently shipping 50 containers of components per day from Germany for assembly in Rosslyn, South Africa or China xxi. The South Africa-Europe trading relationship is very much one that has reached maturity. Since the mid-2000s China has become increasingly important so that by 2009 it accounted for over 10% of South Africa s exports and more than 13% of imports, based upon the most recent WTO data. Only the European Union was a larger trade partner. The gap is likely to have closed even further (EU accounted for >26% of exports and >32% of imports in 2009) is likely to have changed even further as during 2010 China was able to take advantage from the increased demand in souvenirs and flat screen televisions associated with the FIFA Football World Cup whilst at the same time the strong rand and strikes impacted citrus fruit exports in 2010, which has been shown to be a market dominated by Europe (including Russia). General economic and trading indicators The IMF groups countries in sub-saharan Africa according to income as in: 1) Oil-exporting; 2) Middleincome 3) Low Income and finally 4) Fragile. From the ESAf region the countries covered are bracketed as below: Table 41: Income bracket of ESAf countries as per IMF, April 2010 Income bracket Southern Africa East Africa Indian Ocean Islands Oil-exporting Middle-income Botswana, Namibia, South Africa, Swaziland - Mauritius Low-income Mozambique, Lesotho Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda, Zambia, Zimbabwe Comoros, Madagascar, Seychelles French Overseas Departments of Mayotte and Reunion not included in the above Source: International Monetary Fund, World Economic Outlook, April 2011 Understandably those low/income countries have aspirations. Kenya, the second largest economy within ESAf, has a stated aim under its Vision 2030 (infrastructure) investment programme to become a middleincome country and the references with regards to port projects are indicative of this. For this publication, Dynamar has sub-divided the various countries according to geography as below:

108 108 East Africa & Southern Africa Container Trades Division Countries Littoral (coastal) Kenya, Namibia, Mozambique, South Africa, Tanzania Indian Ocean Comoros, Madagascar, Mauritius, Seychelles Landlocked Botswana, Burundi, Lesotho, Malawi, Rwanda, Swaziland, Uganda, Zambia, Zimbabwe Note: Mayotte and Reunion are classed as French Overseas Territories and therefore do not necessarily have a full, independent country, economic or trading profile In terms of merchandise trade, over 2009 (the latest WTO information available), the imported some USD 34.6bn more than it imported, imports totalling USD 129.1bn bn. With notable exceptions, Comoros (exports only), Malawi (both), Namibia (both), Rwanda (imports only) Uganda (exports only) and Zimbabwe (exports), all countries experienced declines in the value of goods imported and exported. This is not a surprise in the context of the financial and economic situations of that year. All told, the eighteen (18) ESAf countries accounted for 0.75% of global exports and 1.02% of imports in Within the ESAf regional figures, the littoral countries as a subset accounted for 79% of the value of exports and 76% of imports by value. The landlocked countries accounted for 17% and 18% respectively leaving 4% and 6% for the Indian Ocean Islands. At the wider economic level, the ESAf region is forecast to see its combined GDP, when measured in USD at current prices, grow by some 65% as from start-2008 to end-2014, this latter reaching some USD 686 billion. By way of comparison, at that same point in time and on the same bases the US economy is forecast to be USD 17,223bn and China s USD 9,016bn [source for all: IMF, World Economic Outlook April 2011]. Within the ESAf combined figures, the relative dominance of the littoral countries in the ESAf region becomes even starker: Chart 2: ESAf subset grouping, share of regional GDP 2010 combined ESAf region Total trade was USD Grouped subset share of ESAf Region GDP 2010 USD 72.55bn; 14% USD 19.54bn; 4% Littoral Landlocked Island USD bn; 82% At an individual country level, the current and future dominance of South Africa, in particular, is clear to see.

109 BACKGROUND ECONOMY, TRADES AND COMMODITIES 109 Chart 3: Individual ESAf countries, historical and forecast GDP, ESAf countries GDP development at current prices, , USD billion South Africa Kenya Tanzania Uganda Zambia Botswana Namibia Mozambique Mauritius Madagascar Zimbabwe Rwanda 7.80 Malawi 6.95 Swaziland 3.75 Lesotho 2.92 Burundi 2.29 Seychelles 1.15 Comoros Regional Economic and Customs Communities South Africa Customs Union Claiming to be the oldest customs union in the world, SACU s origins go back to a customs convention between the British Cape Colony and the Boer Orange Free State that was signed in In its more modern structured form it stems from the 1910 SACU Agreement which incorporated what had become the Union of South Africa plus what was already or would become Botswana, Lesotho and Swaziland. When South Africa took over the administration of Namibia, as it would become, then Namibia became a de facto member. The 1910 agreement was superseded by another one in 1969 and then again in Essentially these agreements have come together, with some aspects still dating back to 1910, to provide: - A common external tariff on all imports to the union and creation of a pool of customs and excise duties - Free movement of goods within the SACU - Revenue sharing formulae to redistribute customs and excise collected by the Union - Joint decision making process - External SACU trade relations and strategies

110 110 East Africa & Southern Africa Container Trades Considering the variety of other extra-national and economic unions in Africa, it will be interesting to see how the SACU fits in vis-a-vis developments towards further integration of all countries and associations involved. As well as SACU, there are three trans-national/regional community organisations covering the ESAf region and that encompass more than just customs union: COMESA: Common Market for East and Southern Africa EAC: East African Community SADC: Southern African Development Community In 2008 all three came together in the first Tripartite Summit to discuss a possible merger and combined Free Trade Area. This was followed up in June 2011 with the Second Tripartite Summit in South Africa with agreement reached to start negotiations towards the combined (Grand) Free Trade Area. If all combined into one free-trade area then they could approaching 583mn people and a combined GDP of around USD 1,020 billion (at current prices). Angola Botswana Table 42: African Regional Economic Communities Membership Community: COMESA EAC SADC Burundi Comoros Dem.Rep.Congo Djibouti Egypt Eritrea Ethiopia Kenya Lesotho Libya Madagascar Malawi Mauritius Mozambique Namibia Rwanda Seychelles South Africa Sudan Swaziland Tanzania Uganda Zambia Zimbabwe Membership, number Combined popn, mn

111 BACKGROUND ECONOMY, TRADES AND COMMODITIES 111 Combined GDP, USD bn Popn all GDP all Countries in bold are considered part of the ESAf region covered by this publication GDP figures are at current prices. Above based...upon data sourced from IMF, World Economic Outlook, April 2011, database for year-end 2010 Common Market for East and Southern Africa (COMESA) Tracing its history back to the 1965 UN Economic Commission for Africa and the 1978 Lusaka Declaration of Intent and Commitment to the Establishment of a Preferential Trade Area for Eastern and Southern Africa, the PTA for short, COMESA actually came into being over 1993 and 1994 and the step succeeding the PTA. The treaty establishing COMESA was signed at the end of 1993 and ratified a year later. At nineteen (19) members, including some from North Africa, it is the largest of the three communities in population. The Community has a broad strategy of integration and development looking at the latter in particular across trade, investment, infrastructure and science and technology. With regards to trade, its aims are to establish a free-trade area, customs union and monetary union. In mid-2009 agreement was finally reached with regards to establishing a customs union. East African Community (EAC) The smallest of the three communities in all common measurements indicated, the EAC was established by treaty at the end of 1999, this coming into force halfway through the following year. Initially established by Kenya, Tanzania and Uganda, Burundi and Rwanda acceded to full membership in Whilst the newest organisation it does have precedents going back to the Kenya/Uganda customs union of 1917 although more recently was the East African Community of and East-African Co-operation, the EAC s immediate forerunner, which ran from The EAC has an existing customs union which came into force in 2005 with Burundi and Rwanda joining four years later. Southern African Development Community (SADC) With origins in those so-called Frontline states neighbouring South Africa at the time of apartheid, the formation of the SADC can be traced back to the agreement reached in 1979 to establish the Southern Africa Development Coordination Conference. Following the independence of a number of members, regional objectives also included economic integration. It is the second largest of the three communities by membership and population it actually surpasses the larger COMESA in terms of regional GDP. The ultimate aim of the SADC is, through various means, for the region to be a competitive and effective player within the world economy and international relations. Alongside the economic communities is, of course, the African Union. Its membership incorporates all twentysix (26) of the countries listed above and them many others from North and West Africa. Amongst its many objectives is the coordination and harmonisation of the various regional economic communities towards the eventual goals of the Union, another of which being the promotion of sustainable development and integration of African economies.

112 112 East Africa & Southern Africa Container Trades Country profiles Littoral Countries, Continental Africa Kenya Full name: Republic of Kenya Capital: Nairobi Dialling code: +254 Internet domain:.ke Land boundaries: 3,500km, with Ethiopia, Somalia, South Sudan, Tanzania, Uganda Coastline: 540km Area: 580,400 sq.km (of which 569,100 sq.km is land) Population: 41.1 million Currency: Kenya Shilling (100 cents), KES Exchange rates, KES 1.00= USD USD USD USD USD Industries: Rail network: Road network: Waterways: Agricultural/horticultural products, aluminium, clothing, coffee, furniture, lead, soap, steel, tea, tourism 2,100km 11,200km, paved On Lake Victoria only Formerly British East Africa, Kenya gained independence in Effectively a oneparty state until 1982, the same party, KANU actually provided the President until 2002 when Mr. Daniel Arap Moi stood down after the elections of that year. He had been in power since 1978 succeeding the country s first President. Unfortunately, the elections of 2007 saw widespread allegations of irregularities and subsequent violence leading to a number of deaths. Eventually UN-sponsored negotiations led to a power sharing agreement early in 2008 with the incumbent President, Mr. Mwai Kibaki a former finance minister and Vice President over the 1970s and 80s remaining and the opposition leader, Mr. Raila Odinga as Prime Minister. The subsequent period has been difficult, as can be imagined. The country s economic progress, despite its advantageous position as a conduit for many landlocked countries, has been impacted by a combination of corruption and reliance on low-value goods. The country is embarking on an ambitious infrastructure and investment programme, Vision 2030, which aims to turn it into a middle-income country.

113 BACKGROUND ECONOMY, TRADES AND COMMODITIES 113 Table 43: Kenya - Economy development, GDP at constant prices, national currency Country Units Kenya KES 1, , , , , , , % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 44: Kenya - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -11% 4,463 Imports USD x mn (cif) -8% 10,202 Total: 14,665 Balance: -5, Top 5 Export partners Import partners European Union 27% European Union 19% Uganda 13% United Arab Emirates 11% Tanzania 9% India 11% United States 5% China 9% Pakistan 4% South Africa 9% 2009 Export commodities groups Import commodities groups Agricultural 55% Agricultural 16% Fuels and mining 6% Fuels and mining 22% Manufactures 36% Manufactures 58% Source: World Trade Organisation

114 114 East Africa & Southern Africa Container Trades Mozambique Full name: Republic of Mozambique Capital: Maputo Dialling code: +258 Internet domain:.mz Land boundaries: 4,600km, with Malawi, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe Coastline: 2,500km Area: 799,400 sq.km (of which 786,400 sq.km is land) Population: 22.9 million Currency: Mozambique New Metical (100 centavos),mzn Exchange rates, MZN 1.00= USD USD USD USD USD USD Industries: Rail network: Road network: Waterways: Aluminium, cement, coal, cotton, chemicals, textiles, tobacco 4,800km 5,700km, paved 460km, Zambezi River A very long-standing Portuguese colony, Mozambique achieved independence in Unfortunately there followed a prolonged civil war that only ended in Two years later elections took place. Even so, and throughout its post colonial history, the three Presidents the country has had have all come from the same Frelimo party. The incumbent is Mr. Armando Guebeza, a successful businessman who made his fortune from energy, ports and transport. His last, and second, election victory in 2009 was clouded by a number of alleged irregularities. The country was already one of the poorest before the Civil War. Despite improvements since the mid-1990s it still requires foreign aid and assistance, all the more so as it also suffers from severe and contrasting natural disasters as floods (2000-1) and then drought (2002), these affecting much of the population on both occasions. The economy is reliant upon aluminium, the prices of which have shown volatility over the past few years. However, the country does appear to have significant coal reserves and the investments from majors as Vale and Rio Tinto testify to its attractiveness in this regard. However, there has been criticism in that the country is pursuing flagship projects that bring very little in the way of social benefit.

115 BACKGROUND ECONOMY, TRADES AND COMMODITIES 115 Table 45: Mozambique - Economy development, GDP at constant prices, national currency Country Units Mozambique MZN % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 46: Mozambique - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -19% 2,147 Imports USD x mn (cif) -6% 3,764 Total: 5,911 Balance: -1, Top 5 Export partners Import partners European Union 51% South Africa 35% South Africa 21% European Union 24% China 3% India 7% Zimbabwe 3% China 5% India 3% Japan 4% 2009 Export commodities groups Import commodities groups Agricultural 26% Agricultural 17% Fuels and mining 21% Fuels and mining 16% Manufactures 12% Manufactures 55% Source: World Trade Organisation

116 116 East Africa & Southern Africa Container Trades Namibia Full name: Republic of Namibia Capital: Windhoek Dialling code: +264 Internet domain:.na Land boundaries: 3,900km, with Angola, Botswana, South Africa, Zambia Coastline: 1,600km Area: 824,300 sq.km (of which 823,300 sq.km is land) Population: 2.1 million Currency: Namibia Dollar (100 cents), NAD Exchange rates, NAD 1.00= USD USD USD USD Industries: Rail network: Road network: Waterways: USD Copper, diamonds, dairy products, fish processing, lead, livestock, silver, tin, uranium, zinc 2,600km 5,500km, paved nil The former German colony of South West Africa, Namibia was actually under South African administration or mandate for around seventy (70) years until This brought to an end a twenty-two (22) year long insurgency campaign waged by SWAPO who have governed the country ever since the very first elections. The country is led by one of the original members of SWAPO, Mr. Hifikepunye Pohamba, and is the second President post independence. He is well into his second and final term of five (5) years which began following the elections of Namibia has a number of mineral resources, these generating much of its export revenue but actually accounting for only a small amount of GDP and employing relatively few people. Main items are diamonds and uranium. It also built up its fish processing industry in the course of the 2000s and is busy trying to establish itself as a major conduit for not only landlocked countries but also parts of South Africa.

117 BACKGROUND ECONOMY, TRADES AND COMMODITIES 117 Table 47: Namibia - Economy development, GDP at constant prices, national currency Country Units Namibia NAD % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 48: Namibia - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) 7% 3,348 Imports USD x mn (cif) 15% 4,980 Total: 8,328 Balance: -1, Top 5 Export partners Import partners South Africa 32% South Africa 68% European Union 29% European Union 16% Angola 9% India 3% Canada 7% China 3% United States 6% United States 2% 2009 Export commodities groups Import commodities groups Agricultural 24% Agricultural 7% Fuels and mining 35% Fuels and mining 20% Manufactures 39% Manufactures 69% Source: World Trade Organisation

118 118 East Africa & Southern Africa Container Trades South Africa Full name: Republic of South Africa Capital: Pretoria Dialling code: +27 Internet domain:.za Land boundaries: 4,900km, with Botswana, Lesotho (enclave), Mozambique, Namibia, Swaziland, Zimbabwe Coastline: 2,800km Area: 1.22mn sq.km (of which 1.21mn sq.km is land) Population: 49.0 million Currency: South Africa Rand (100 cents), ZAR Exchange rates, ZAR 1.00= USD USD USD USD USD Industries: Rail network: Road network: Waterways: Chemicals, chromium, diamonds, fertiliser, foodstruffs, gold, iron, platinum, steel, vehicle assembly, 20,200km 73,500km, paved nil The modern South Africa has its origins in the 1910 Union of South Africa which brought together the British controlled provinces [colonies] and the independent Boer republics. Actually one of the Dominions of the former British Empire it effectively gained independence in 1931 before becoming a republic some thirtyyears later. From the very start, and before even, the country had followed segregationist policies that became known as apartheid whereby the country was governed by the white minority and with whom the country s wealth and standard of living was concentrated. As the Twentieth Century progressed the country found itself increasing isolated on many fronts and eventually a peaceful transition was negotiated which led to multi cultural elections being held in These were won by the African National Congress, which has won all other elections since and provided three Presidents in doing so. The current one is Mr. Jacob Zuma who was elected in 2009 following the 2008 resignation of Mr. Thabo Mbeki. Alongside its obvious geographical advantages along major shipping routes, South Africa has natural resources, a fairly developed inland infrastructure, albeit requiring modernisation, and financial system. It is by far the dominant economy within the ESAf region and also the largest on the continent as a whole. One of the rising economies of the world it is placed alongside the so-called BRICS grouping that also includes Brazil, Russia, India and China and in 2010 hosted the FIFA football world Cup. Even so, it still faces many challenges not the least of which is the still large variations in living standards and economic empowerment. Its relative level of sophistication and links with the developed western world actually saw it impacted in the financial and economic crises.

119 BACKGROUND ECONOMY, TRADES AND COMMODITIES 119 Table 49: South Africa - Economy development, GDP at constant prices, national currency Country Units South Africa ZAR 1, , , , , , , % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 50: South Africa - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -24% 61,677 Imports USD x mn (cif) -27% 73,172 Total: 134,849 Balance: -11, Top 5 Export partners Import partners European Union 27% European Union 32% China 11% China 13% United States 9% United States 8% Japan 8% Saudi Arabia 5% Switzerland 4% Japan 5% 2009 Export commodities groups Import commodities groups Agricultural 11% Agricultural 7% Fuels and mining 35% Fuels and mining 23% Manufactures 52% Manufactures 68% Source: World Trade Organisation

120 120 East Africa & Southern Africa Container Trades Tanzania Full name: United Republic of Tanzania Capital: Dar Es Salaam (although Dodoma is the seat of the Legislature) Dialling code: +255 Internet domain:.tz Land boundaries: 3,900km, with Burundi, DR Congo, Kenya, Malawi, Mozambique, Rwanda, Uganda, Zambia Coastline: 1,400km Area: 947,300 sq.km (of which 885,800 sq.km is land) Population: 47.7 million Currency: Tanzanian shilling (100 cents), TZS Exchange rates, TZS 1.00= USD Industries: Rail network: Road network: Waterways: USD USD USD USD USD Cement, cashews, coffee, cotton, diamonds, gold, shoes, salt, soda ash, sugar, tobacco/cigarettes, tourism, wood products 3,700km 4,700km, paved Lakes Tanganyika, Victoria, Nyasa/Malawi Tanzania came into being in 1964 with the coming together of the independent Tanganyika and the island of Zanzibar, which achieved independence the year before. Zanzibar is still a semi-autonomous part of Tanzania and has its own Parliament and President and 2010 elections Unlike many of its regional peers Tanzania has not suffered civil war or strife although did have a period of twenty-five years of single party rule up to The incumbent President, Mr. Jakaya Kikwete is into his second term after winning the In another contrast, it is not exactly resource rich and was already one of the poorest countries in the world at the time of its independence and is dependent upon the agricultural sector. It still lacks infrastructure which would undoubtedly assist it as a corridor country and despite the apparent successes of its successive Presidents in turning the country to a market economy, reducing inflation and foreign debt and economic development, the general populace is still poor with many living below the poverty line. It has though managed to succeed in attracting both donors and investors and with natural attractions as the Serengeti paradoxically under threat from infrastructure projects and Mount Kilimanjaro, tourism is becoming increasingly prominent.

121 BACKGROUND ECONOMY, TRADES AND COMMODITIES 121 Table 51: Tanzania - Economy development, GDP at constant prices, national currency Country Units Tanzania TZS 13, , , , , , , % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 52: Tanzania - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -4% 2,926 Imports USD x mn (cif) -10% 6,411 Total: 9,337 Balance: -3, Top 5 Export partners Import partners Switzerland 20% European Union 19% European Union 17% India 12% China 13% China 11% Kenya 6% South Africa 11% South Africa 6% UAE 10% 2009 Export commodities groups Import commodities groups Agricultural 32% Agricultural 10% Fuels and mining 18% Fuels and mining 24% Manufactures 17% Manufactures 66% Source: World Trade Organisation

122 122 East Africa & Southern Africa Container Trades Country profiles Indian Ocean Island Countries and Territories Comoros Full name: Union of the Comoros Capital: Moroni Dialling code: +269 Internet domain:.km Land boundaries: Nil Coastline: 340km Area: 2,235 sq.km (all land) Population: 794,700 Currency: Comoros Franc (100 centimes), KMF Exchange rates, KMF 1.00= USD USD USD USD USD USD Industries: Fishing, copra, loves, perfume oil and processing, vanilla Rail network: Nil Road network: 670km, paved Waterways: Nil Having gained independence from France in 1975, the tone for the next thirty-odd years or so was set by a coup d etat shortly afterwards. Since then there have been at least another twenty (20) successful or attempted coups. Set against that has been further instability brought by conflict between the three islands that make up the country. Two, Anjouan and Moheli, unilaterally declared indepedence in 1997 leaving, essentially, Grande Cormoro behind. Following an Accord reached in 2000 they were brought back within a federal structure with defence and financial matters only centralised and a rotating presidency only for Anjouan to effectively secede in A combination of African Union and Comoran military intervention restored the situation ante a year later. With the potential to be a holiday resort á la Mauritius and Seychelles, the troubles of the last three decades have nullified the attractiveness somewhat. As a small archipelago with very little in the way of natural resources and transportation links between and within its constituent parts, the economy is reliant upon foreign aid and remittances home. Its own output centres on the main crops of vanilla, cloves and ylang-ylang.

123 BACKGROUND ECONOMY, TRADES AND COMMODITIES 123 Table 53: Comoros - Economy development, GDP at constant prices, national currency Country Units Comoros KMF % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 54: Comoros - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) 78% 16 Imports USD x mn (cif) -3% 170 Total: 186 Balance: Top 5 Export partners Import partners European Union 16% UAE 19% Singapore 1% European Union 11% India 1% Pakistan 11% UAE 1% China 9% Yemen 0% Tanzania 9% 2009 Export commodities groups Import commodities groups Agricultural 41% Agricultural 32% Fuels and mining 0% Fuels and mining 1% Manufactures 1% Manufactures 41% Source: World Trade Organisation

124 124 East Africa & Southern Africa Container Trades Madagascar Full name: Republic of Madagascar Capital: Antananarivo Dialling code: +261 Internet domain:.mg Land boundaries: Nil Coastline: 4,800km Area: 587,000 sq.km (of which 581,500 sq.km is land) Population: 29.1 million Currency: Malagasy Ariary, MGA Exchange rates, MGA 1.00= USD Industries: Rail network: Road network: Waterways: USD USD USD USD Cement, cloves, coffee, fabrics, paper, petroleum products, seafood, soap, sugar, tourism, vanilla 850km 7,600km, paved 600km The fourth largest island in the world, Madagascar, a previously independent kingdom was a French colony for sixty-four years until 1960 when it regained its independence. Its recent political history has been dominated by a few (former) Presidents and a series of political crises. The most recent of those broke in 2009 and is still ongoing following the resignation of the previous President after a power struggle and who was replaced, with the backing of the army, by the man who was also Mayor of Antananarivo, Mr. Andry Rajoelina. In reaction the African Union imposed sanctions on the de facto government. Despite negotiations that apparently led to a power-sharing agreement plus a programme to return to elections in 2011 nothing has really moved forward in this regard. The political instabilities have also hampered any privatisation and liberalisation moves the government has made. As these have also hit tourism, agriculture, fishery and forestry are vitally important to the economy and employ around eight out of every ten people in work

125 BACKGROUND ECONOMY, TRADES AND COMMODITIES 125 Table 55: Madagascar - Economy development, GDP at constant prices, national currency Country Units Madagascar MGA 6, , , , , , , % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 56: Madagascar - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -20% 1,052 Imports USD x mn (cif) -15% 3,201 Total: 4,253 Balance: -2, Top 5 Export partners Import partners European Union 53% European Union 23% United States 18% Thailand 18% China 5% China 11% Singapore 2% Mauritius 5% India 2% South Africa 4% 2009 Export commodities groups Import commodities groups Agricultural 30% Agricultural 11% Fuels and mining 7% Fuels and mining 10% Manufactures 58% Manufactures 77% Source: World Trade Organisation

126 126 East Africa & Southern Africa Container Trades Mauritius Full name: Republic of Mauritius Capital: Port Louis Dialling code: +230 Internet domain:.mu Land boundaries: Nil Coastline: 180km Area: 2,040 sq.km (of which 2,030 sq.km is land) Population: 1.3 million Currency: Mauritius Rupee (100 cents), MUR Exchange rates, MUR 1.00= USD Industries: Rail network: Road network: Waterways: USD USD USD USD USD Business and financial services (offshore), chemicals, metal products, sugar plantation and milling, tea, textiles, tourism Nil 2,100km, paved Nil Having at various points and in order, been occupied and/ or controlled by the Dutch, French and British, Mauritius became an independent country in 1968 and a republic in The main island is Mauritius with other islands including Cargados Carajos, Rodrigues and Agelaga. Together with Reunion they are all part of the Mascarene Islands; in fact Reunion is some 370km closer to Mauritius than Rodrigues is. The country is well regarded, especially in a regional context, for its political and economic stability and is considered a middle income economy. It is currently led by Mr. Navin Ramgoolam as Prime Minister of a coalition and who has held the post since 2005 and earlier between At the time of independence Mauritius was low income and agricultural based. Nowadays it has moved into offshore business and financial services, property development, tourism and textiles these all helping diversify away from sugar cane, although this is still a significant export earner

127 BACKGROUND ECONOMY, TRADES AND COMMODITIES 127 Table 57: Mauritius - Economy development, GDP at constant prices, national currency Country Units Mauritius MUR % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 58: Mauritius - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -19% 1,939 Imports USD x mn (cif) -20% 3,733 Total: 5,671 Balance: -1, Top 5 Export partners Import partners European Union 69% European Union 26% United States 8% India 19% Madagascar 6% China 13% South Africa 5% South Africa 9% Seychelles 2% Japan 3% 2009 Export commodities groups Import commodities groups Agricultural 31% Agricultural 23% Fuels and mining 1% Fuels and mining 16% Manufactures 57% Manufactures 57% Source: World Trade Organisation

128 128 East Africa & Southern Africa Container Trades Seychelles Full name: Republic of Seychelles Capital: Victoria Dialling code: +248 Internet domain:.sc Land boundaries: Nil Coastline: 490km Area: 455sq.km, all land Population: 89,200 Currency: Seychelles Rupee (100 cents), SCR Exchange rates, SCR 1.00= USD USD USD USD Industries: Rail network: Road network: Waterways: USD Cinnamon, coconut (processing), copra, fishing, furniture, tourism, vanilla Nil 440km, paved Nil 2006 Fought over for a number of years, the Seychelles fell under British control in 1814 and remained that way until independence in The (new) Prime Minister then successfully launched a bloodless coup and there followed, four years later, a mercenary backed attempted (failed) counter-coup and then an army mutiny in Further attempted coups also failed. However, with the restoration of mulit-party democracy in 1992 the island country appears to have developed and is a well established middle income nation or better. The current President, Mr. James Michel, was Vice President to the man who had been President from 1977 through to 2004, Mr. France Albert Rene. The country has grown and developed economically, this being led by the high-end tourist sector. This has been paralleled by diversification into fishing, farming and small scale manufacturing. Although the country suffered in 2008 defaulting on Euro bonds valued around converted USD 80mn in the process it received a USD 3mn grant from the European Union towards the end of 2010 as part of a longer four-year programme.

129 BACKGROUND ECONOMY, TRADES AND COMMODITIES 129 Table 59: Seychelles - Economy development, GDP at constant prices, national currency Country Units Seychelles SCR % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 60: Seychelles - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -8% 4 Imports USD x mn (cif) -23% 8 Total: 12 Balance: Top 5 Export partners Import partners European Union 41% European Union 30% Saudi Arabia 27% UAE 17% Switzerland 1% Saudi Arabia 14% Sri Lanka 1% Singapore 8% United States 1% South Africa 6% 2009 Export commodities groups Import commodities groups Agricultural 55% Agricultural 23% Fuels and mining 43% Fuels and mining 26% Manufactures 2% Manufactures 48% Source: World Trade Organisation

130 130 East Africa & Southern Africa Container Trades French Overseas Territories Finally, there are the two French Overseas Territories of Réunion and Mayotte. Réunion is a small (2,500 sq.km) but densely populated island (777,000 inhabitants) located to the east of Madagascar deeper into the Indian Ocean but some 200km southwest of Mauritius. Formerly known as the island of Bourbon, it saw the first French settlers in the mid 1640s. It was ruled as a colony with a brief hiatus for British control early in the Nineteenth Century until it was transformed into a Departement in Sugar cane, tourism and financial assistance from France are the cornerstones of its economy. Its international dialling code is +262 and internet domain and locode country code.re. Mayotte is located between the northwest of Madagascar and the northeast of (mainland) Mozambique. Whilst geographically part of the Comoros island group it voted in a referendum in 1974 to remain under French control. A subsequent referendum in 2009 led to it becoming another overseas department, this taking effect in March The territory consists of a main island, Mahoré, and smaller one, Pamanzi. It has an area of 675 sq.km and population around ,000. Its international dialling code is (also) +262 and internet domain and Locode is.yt.

131 BACKGROUND ECONOMY, TRADES AND COMMODITIES 131 Country profiles Landlocked Countries, Continental Africa Botswana Full name: Republic of Botswana Capital: Gaborone Dialling code: +267 Internet domain:.bw Land boundaries: 4,000km, with Namibia, South Africa, Zimbabwe Coastline: Landlocked Area: 581,700 sq.km (of which 566,700 sq.km is land) Population: 2.0 million Currency: Botswana Pula (100 thebe), BWP Exchange rates, BWP 1.00= USD USD USD USD Industries: Rail network: Road network: Waterways: USD Coal, copper, diamonds, iron ore, livestock processing/beef, nickel, potash, salt, silver, textiles 890km 28,800km nil Originally established in the late 1800s as the British Protectorate of Bechuanaland, Botswana gained independence, and its new name, in Its relatively central position within Southern Africa has seen it considered, initially, as a bulwark against expansion by either the Transvaal or German regional interests, and in more recent times as a place of safety as people fled situations in South Africa and latterly, Zimbabwe. It is considered one of the more stable countries in the region and continent and is in fact the longest running continuous multi-party democracy. The current President, Mr. Seretse Ian Khama, is the son of the country s first although there was a third unrelated President in between the two for a period of ten years up to This stability can surely be a large reason behind the fact that 2008 aside it has enjoyed high economic growth rates. The country s economy is dominated by diamond mining with it being the world s largest producer of same although Botswana also recognises the need to diversify away. This might be difficult given that much of the country is taken up by the Kalahari Desert hence the low population density. For all its progress the country is severely afflicted by Aids/HIV more than a third of all adults said to be infected and despite the relatively progressive and wide ranging programmes to combat the same.

132 132 East Africa & Southern Africa Container Trades Table 61: Botswana - Economy development, GDP at constant prices, national currency Country Units Botswana BWP % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 62: Botswana - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -30% 3,456 Imports USD x mn (cif) -9% 4,728 Total: 8,184 Balance: -1, Top 5 Export partners Import partners European Union 27 59% South Africa 76% South Africa 15% European Union 27 12% Zimbabwe 10% China 3% Norway 4% United States 2% Israel 3% Israel 1% 2009 Export commodities groups Import commodities groups Agricultural 6% Agricultural 14% Fuels and mining 17% Fuels and mining 15% Manufactures 78% Manufactures 67% Source: World Trade Organisation

133 BACKGROUND ECONOMY, TRADES AND COMMODITIES 133 Burundi Full name: Republic of Burundi Capital: Bujumbura Dialling code: +257 Internet domain:.bi Land boundaries: 970km, with D.R. Congo, Rwanda, Tanzania Coastline: Landlocked Area: 27,800 sq.km (of which 25,700 sq.km is land) Population: 10.2 million Currency: Burundi Franc (100 centimes), BIF Exchange rates, BIF 1.00= USD USD USD USD Industries: Rail network: Road network: Waterways: Assembly of imported items, food processing, light consumer goods (blankets, shoes, soap), municipal projects construction Nil 1,300km paved Across Lake Tanganyika to D.R. Congo, Tanzania and Zambia Independent since 1961, one of the smallest nations on the continent, Burundi is also one of the poorest in the world with over half the population said to live below the poverty line. With a lack of natural resources, most of its foreign currency earnings come from tea and coffee although its membership of the East African Community may well help its regional economic development at the least. Burundi experienced a bloody twelve-year long civil war which started after the plane carrying both its and Rwanda s president was shot down over Kigali (Rwanda) in 1994 sparking a vicious conflict in both countries between Hutus and Tutsis. Diplomatic intervention by South Africa led to a ceasefire in the first half of the 2000s, and in 2005 the first post-civil war election which returned the Hutu leader, Mr. Pierre Nkurunzizia. He was re-elected in 2010 albeit with the opposition not participating over complaints of earlier fraud in local elections.

134 134 East Africa & Southern Africa Container Trades Table 63: Burundi - Economy development, GDP at constant prices, national currency Country Units Burundi BIF % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 64: Burundi - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -24% 64 Imports USD x mn (cif) -33% 402 Total: 466 Balance: Top 5 Export partners Import partners United Arab Emirates 26% European Union 27 31% Switzerland 18% China 9% European Union 27 16% Kenya 9% Tanzania 8% Uganda 9% Kenya 6% India 6% 2009 Export commodities groups Import commodities groups Agricultural 61% Agricultural 10% Fuels and mining 15% Fuels and mining 3% Manufactures 24% Manufactures 65% Source: World Trade Organisation

135 BACKGROUND ECONOMY, TRADES AND COMMODITIES 135 Lesotho Full name: Kingdom of Botswana Capital: Maseru Dialling code: +266 Internet domain:.ls Land boundaries: 900km, enclave (South Africa) Coastline: Landlocked Area: 30,600 sq.km, all land Population: 1.9 million Currency: Lesotho Loti (100 lisente), LSL Exchange rates, LSL 1.00= USD USD USD USD Industries: Rail network: Road network: Waterways: USD Beverages, construction, diamonds, food, livestock, textiles and clothing, tourism, water, wool Nil 1,400km paved Nil Another former British Protectorate, Lesotho, previously named Basutoland, gained independence in The monarch is now a constitutional head of state and hopefully unifying force for the country which, like others in the region, has endured periods of instability since independence especially. The latest, occurring after disputed elections in 1998, required Southern African Development Community troops from South Africa and Botswana to enter the country and restore order. Since then, the political situation has appeared relatively stable. The current Prime Minister, Mr. Bethuel Mosisili was elected in 2007 for the third time in a row his first victory coming in Even so, instability is only ever a step away as an apparent assassination attempt on Mr. Mosisili in 2009 shows. As a small, mountainous and generally remote country completely surrounded by South Africa, Lesotho relies very much on that country. It is the recipient of one of Lesotho s major products, i.e. water, which Lesotho has also turned to provide much of its electricity. Elsewhere global pressure on its traditional textiles industry and a decline in the mining sector has led to many from Lesotho moving to South Africa for work. Alongside remittances from the expatriate workers, other revenue is generated by duties from the South Africa Customs Union.

136 136 East Africa & Southern Africa Container Trades Table 65: Lesotho - Economy development, GDP at constant prices, national currency Country Units Lesotho LSL % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 66: Lesotho - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -19% 716 Imports USD x mn (cif) -3% 1,950 Total: 2,666 Balance: -1, Top 5 Export partners Import partners United States 69% South Africa 78% South Africa 18% Taipei, Chinese 6% European Union (27) 10% Hong Kong, China 6% Switzerland 3% China 4% Canada 1% European Union 27 2% 2009 Export commodities groups Import commodities groups Agricultural 7% Agricultural 20% Fuels and mining 0% Fuels and mining 7% Manufactures 92% Manufactures 62% Source: World Trade Organisation

137 BACKGROUND ECONOMY, TRADES AND COMMODITIES 137 Malawi Full name: Republic of Malawi Capital: Lilongwe Dialling code: +265 Internet domain:.mw Land boundaries: 2,800km, with Mozambique, Tanzania, Zambia Coastline: Landlocked Area: 114,500 sq.km (of which 94,100 sq.km is land) Population: 15.9 million Currency: Malawi Kwacha (100 tambala), MWK Exchange rates, MWK 1.00= USD USD USD USD USD USD Industries: Cement, consumer goods, cotton, sawmill products, sugar, tea, tobacco Rail network: 800km Road network: 8,500km, paved Waterways: Lake Nyasa/Malawi and Shire River 2006 Another former British Protectorate, that of Nyasaland, like with many of its regional peers Malawi also gained independence in the 1960s (1964). Even so, its first mulitparty elections were not held until The current President, Mr. Bingu Wa Mutharika, a former Secretary General of COMESA, formed his own (breakaway) party in 2004 and won the elections of the following year being elected to a further term in mid Whlst under his stewardshp the country has made progress in the privatisation of (loss-making) private bodies, healtchare, education, environment and the economy. However, against growing concern over the style of government, in 2011 a diplomatic row with the United Kingdom led to its Representative there being expelled. A little later the UK, the country s largest aid donor, advised that it would stop all donations to the country. Despite all this, the UK Foreign & Commonwealth Office still advises relations with the country as being good. The withdrawal of UK aid could have a serious impact for this agriculturally based country. It requires, and is dependent upon, substantial assistance from organs as the IMF and Wolrd Bank plus individual countries. It benefitted in the latter half of the 2000s from fertliser subsidies which helped improve production and make the country a net food exporter. Even so, most of the population (still) relies upon subsistence farming with over half living below the poverty line. An important export commodity and sector is tobacco although there is an opportunity to perhaps open up a uranium mining and exporting industry.

138 138 East Africa & Southern Africa Container Trades Table 67: Malawi - Economy development, GDP at constant prices, national currency Country Units Malawi MWK % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 68: Malawi Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) 26% 1,080 Imports USD x mn (cif) 9% 1,800 Total: 2,880 Balance: Top 5 Export partners Import partners European Union (27) 37% South Africa 34% South Africa 10% European Union (27) 14% Egypt 6% Mozambique 13% Mozambique 5% China 6% Switzerland 4% India 5% 2009 Export commodities groups Import commodities groups Agricultural 88% Agricultural 17% Fuels and mining 1% Fuels and mining 14% Manufactures 11% Manufactures 69% Source: World Trade Organisation

139 BACKGROUND ECONOMY, TRADES AND COMMODITIES 139 Rwanda Full name: Republic of Rwanda Capital: Kigali Dialling code: +250 Internet domain:.rw Land boundaries: 900km, with Burundi, D.R. Congo, Tanzania, Uganda Coastline: Landlocked Area: 26,300 sq.km (of which 24,700 sq.km is land) Population: 11.3 million Currency: Rwanda Franc (100 centimes), RWF Exchange rates, RWF 1.00= USD USD USD USD USD USD Industries: Rail network: Road network: Waterways: Agriculture, cement, coffee, furniture, hides, shoes, soap, tea, tobacco/cigarettes, textiles, tin ore Nil 2,700km, paved Nil Even before its independence from Belgium in 1962, the country of Rwanda has experienced extreme bouts of ethnic based violence which reached their nadir in 1994 following the assassination of the country s President and his Burundian counterpart in the same attack. There followed an estimated 800,000 to 1.0mn deaths of Tutsi and moderate Hutus (by the Rwandan army and Hutu militias) plus the subsequent flight of another 2.0mn Hutus to Zaire (now D.R. Congo) following the victory of the Tutsi Rwandan Patriotic Front (RPF). All this happened, essentially, within the space of a year. Remarkably, and for all its internal problems, Rwanda has also undertaken its own military involvement in neighbouring D.R. Congo on separate occasions in the 2000s, these in relation to Hutu insurgency. The man leading the RPF military operation in 1994, Mr. Paul Kagame, has been in leading positions ever since, initially as Vice President and then as President in He has subsequently won another two elections although the last, in 2010, was against the backdrop of violence and murder of some high profile individuals. Rwanda is the most densely populated country in the African Continent. It is a rural based country but still needs to import food to meet with demand; close to two-thirds of the population live below the poverty line. Traditional exports are tea and coffee although minerals and tourism have now added to its earnings. It is trying to develop its economy and trading base and to that end is a member of the East African Community. Further, and despite its Belgium colonial past and its recent turbulent history, Rwanda joined the former British Empire centred Commonwealth in 2009.

140 140 East Africa & Southern Africa Container Trades Table 69: Rwanda - Economy development, GDP at constant prices, national currency Country Units Rwanda RWF 1, , , , , , , % Source: International Monetary Fund, World Economic Outlook Database, April 2011 Notes: prices and relative changes based upon national currency x billion at constant prices Figures in italics are estimates or forecasts Table 70: Rwanda - Merchandise trade statistics, 2009 Merchandise trade Currency/units Growth Exports USD x mn (fob) -28% 193 Imports USD x mn (cif) 8% 1,227 Total: 1,420 Balance: -1, Top 5 Export partners Import partners Kenya 32% European Union 25% European Union 16% Uganda 13% Sudan 11% Kenya 11% Swaziland 9% China 8% Hong Kong, China 6% United Arab Emirates 6% 2009 Export commodities groups Import commodities groups Agricultural 44% Agricultural 14% Fuels and mining 50% Fuels and mining 15% Manufactures 5% Manufactures 67% Source: World Trade Organisation

141 BACKGROUND ECONOMY, TRADES AND COMMODITIES 141 Swaziland Full name: Kingdom of Swaziland Capital: Mbabane Dialling code: +268 Internet domain:.sz Land boundaries: 535km, with Mozambique, South Africa Coastline: Landlocked Area: 17,300 sq.km (of which 17,200 sq.km is land) Population: 1.4 million Currency: Swaziland Lilangeni (100 cents), SZL Exchange rates, SZL 1.00= USD USD USD USD USD Industries: Rail network: Road network: Waterways: Coal, minerals, sugar, textiles/clothing 300km 1,100km, paved Nil Whilst the Swazis had their autonomy guaranteed by the UK in the late nineteenth century and attained independence in the late 1960s it has been an absolute monarchy throughout. The current King, Mswati III, ascended the throne in 1986 and rules by decree, a constitution of 2006 effectively confirming his rule whilst at the same time seeming to throw some ambiguity on the legal position of (opposing) political parties. Although landlocked, Swaziland is not quite an enclave sharing a border as it does with Mozambique as well as South Africa. However it is reliant upon this latter country economically, in terms of trade and financially pegging its own currency to the South African Rand. Traditional export earners were sugar and wood pulp although the latter saw the closure of its last producer in early Sugar has been impacted by the withdrawal of trading concessions although the local industry has tried to develop and modernise. Paralleling this, the small mining sector has also declined. This leaves the country dependent on agriculture, duties from the South African Customs Union and remittances from those working in South Africa. On top of all this it has the highest rate of infection of HIV/AIDS in the world.