LATEST LOGISTICS AND FORWARDING NEWS

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1 LATEST LOGISTICS AND FORWARDING NEWS FRANCE - Air France-KLM cargo activities - Air France has launched 3 flights per week to Accra (Ghana) - Good results achieved by Marseille Fos port in 2016 INDIA - In the field of logistics, India is handicapped compared to competing countries - The first integrated on-airport perishable cargo handling centre - CMA CGM will raise its freight tariffs between India and West Africa MADAGASCAR - Price of vanilla on the up - The Customs office at Toliara has gone paperless - Belgian enterprises express their interest

2 MAURITIUS % growth in transhipped container traffic in Major projects in the port area - Air Mauritius plans for this year unveiled MOZAMBIQUE - US $ 96 million invested in the construction of a mall - EDM requests electricity tariff rise - Mozambique wants to attract businesses from Indonesia REUNION ISLAND - Will Air Austral become the strategic partner of Air Madagascar? - Major developments at Roland Garros International Airport - High weightage of import traffic at Port Reunion OTHER PARTS OF THE WORLD - Forthcoming developments at O. R. Tambo International Airport, Johannesburg - Small to medium-sized ports may suffer from new trends - Increase in global demand for air freight -

3 LATEST LOGISTICS AND FORWARDING NEWS FRANCE Air France-KLM cargo activities In January 2017, concerning Air France-KLM cargo activities, a load factor of 56.6% was attained. The Unit revenue per available tonne kilometre (RATK) was lower compared to January Air France has launched 3 flights per week to Accra (Ghana) Since the end of February, Air France has started to operate three flights per week to Accra (Ghana) from Paris-Charles de Gaulle airport. Until the 27 th March, the flights will be on board an Airbus A 330 and after that date, the route will be served by a Boeing Good results achieved by Marseille Fos port in 2016 The port of Marseille Fos handled 81 million tonnes of cargo in 2016 including a record container traffic of 1.25 million TEUs, highlighting the port positioning as an alternative southern gateway for Europe.

4 INDIA In the field of logistics, India is handicapped compared to competing countries According to the findings of a recent economic survey undertaken by the Government of India, in the field of logistics, India is handicapped compared to competing countries in a number of ways. Despite cheaper labour in India, the costs and time to move manufactured goods from a factory to the different destinations, are higher. Road transport is relatively high (US $ 7 per km) in India while it is $2.5 in China, $3 in Sri Lanka and $3.9 in Bangladesh. Furthermore, customs and port clearances take 6 days in India but only 1.5 days in China and 3 days in Sri Lanka. The first integrated on-airport perishable cargo handling centre Air India SATS, a ground handling company, has launched the first integrated on-airport perishable cargo handling centre in India. It is located at Kempegowda International Airport in Bengaluru, Southern India. Covering a surface area of square feet, it has required investments of US $ 7.2 million. The infrastructure can handle tonnes per year. CMA CGM will raise its freight tariffs between India and West Africa As from the 16th March, the shipping line CMA CGM will raise its freight rates for all cargo (including dry and break bulk) transported from India to West Africa. The increase will be of US $ 150 per TEU.

5 MADAGASCAR Price of vanilla on the up The crop of vanilla of Madagascar is expected not to exceed tonnes and the price of vanilla from Madagascar is soaring and reaching US $ 500 per kg. A decent vanilla crop from Madagascar turns around tonnes. No other country produces to a level nearing tonnes a year. In 2016, Indonesia contributed about 500 tonnes to the world market. The Customs office at Toliara has gone paperless Since the 13 th March, an 11 th Customs office in Madagascar has gone paperless. Importers and exporters now enter their customs declarations on line at Toliara. They can reap the benefits of simplified and transparent customs clearing processes. Belgian enterprises express their interest A delegation of about 20 economic operators from Belgium led by the Belgian export agency AWEX, has visited Madagascar. The delegation was interested in the treatment of wastes and used water, textile products, agro industry and energy.

6 MAURITIUS 16.5% growth in transhipped container traffic in 2016 The Mauritius Ports Authority has made public the traffic figures it achieved during year A total of 7.3 million tonnes of goods had been handled last year compared to 6.8 million tonnes in The number of captive containers has risen from to TEUs while transhipped boxes have witnessed a 16.5% growth from to TEUs. Major projects in the port area The extension works of the container quay by 240 meters have been completed. Furthermore, the dredging works to increase the depth of the quay from 14 m to 16.5 m, will end in May. Two vessels up to 325 m long, will then be able to berth simultaneously. Two new ship-to-shore travelling gantry cranes are expected to be delivered at Port Louis in December and will be operational next year. Air Mauritius plans for this year unveiled According to Carla da Silva, Air Mauritius regional manager for Southern Africa and Latin America, the airline plans to continue its growth and expansion strategy with more frequencies into Shanghai, Hong Kong and Singapore.

7 MOZAMBIQUE US $ 96 million invested in the construction of a mall Actis, an international private fund, is investing US $ 96 million in the construction of a mall in Maputo. The project, the Baia Mall will cover a surface are of m2 and comprise a hotel as well as more than 100 shops and restaurants. Retail brands such as Super Spar, Game and Woolworths will be present. The mall is expected to be completed by the end of this year. EDM requests electricity tariff rise The price of products and services may rise in Mozambique in the near future. Company EDM has submitted to the government a request to increase its electricity tariffs by 1.32 meticais per kilowatt. It is awaiting the government s authorization. EDM is in a difficult financial situation due to the rising costs of generating and distributing electricity in the country. Mozambique wants to attract businesses from Indonesia The Mozambican President Filipe Nyusi has invited Indonesian companies to invest in his country. He added that he is willing to facilitate their entry, highlighting the fact that the laws on foreign investment are currently being reformed.

8 REUNION ISLAND Will Air Austral become the strategic partner of Air Madagascar? Air Austral is with Ethiopian Airlines, the two selected contenders to enter into the shareholding of Air Madagascar and become its strategic partner. Both airlines have been invited to carry out negotiations in parallel and the partner will be awarded the contract by the 31 st March 2017 to contribute to the development and the turnaround of Air Madagascar. Major developments at Roland Garros International Airport In middle of the year, a boost in the import of duty-free products is expected due to the setting-up of a walk-through of duty-free shops at Roland Garros International Airport. A new commercial zone covering a surface area of 650 square metres between the control stations and the departure lounge, will be developed by the company Aelia Duty-Free. High weightage of import traffic at Port Reunion General goods represent 51% of total traffic at the port of Reunion Island compared to 49.3% at the port of the neighbouring island of Mauritius, Port Louis. However, at Port Louis, imports account for 64.7% of total traffic. On the other hand, at Port Reunion, imports have a much higher weightage with 83.1% of imports.

9 OTHER PARTS OF THE WORLD Forthcoming developments at O. R. Tambo International Airport, Johannesburg In the short term, Airports Company South Africa plans to upgrade the access and frontage roads around the cargo buildings at O. R. Tambo International Airport, Johannesburg. The objectives will be to relieve congestion and lower the transit times of vehicles. Last year, 350,500 tonnes of air cargo were handled at O. R. Tambo International Airport, a drop of about 10% compared to the preceding year. Small to medium-sized ports may suffer from new trends According to Dr Jonathan Beard, head of transportation and logistics at Arcadis, an infrastructure specialist, decreasing unit revenue for shipping lines and weak growth in demand are putting huge pressure on sea carriers to reduce the operating costs of their network. Furthermore, the mega alliances between the shipping lines will lead to downward pressure on charges of ports and terminals but also, the need for faster turnarounds. Analysts believe that small to medium-sized ports may suffer from these new trends especially in south-east Asia. Increase in global demand for air freight According to the International Air Transport Association (IATA), in January 2017, global demand for air Freight, measured in freight tonne kilometre (FTKs), has risen by 6.9% year on year.

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