Cargo To Africa

Tag: cargo to Africa

  • UK Taking African Trade to the Next Level

    Continuous help is changing buy and sell scenario in the region

    For a long time these two countries have been doing trade in an effective and fruitful way. Doing business in Africa is not a kid’s game, the businessman or trader has to put his best efforts in setting up something new. The reason is not that people are not ready to participate in changing the situation, but it is the complex systems at every trade entry.

    The documentation is complex which results in the delay of the procedures. But efforts are being made to make the procedure efficient. In this regard, UK is lending a helping hand for setting up an advanced structure to speed up things according to the international standards. In East Africa trade access has become easy since 2010 with the onset of One Stop Border Points.

    Till now Trade Mark East Africa has funded 15 OSBP for their construction and operating. This became possible through the funding of UK’s Department for International Development and Global Affairs Canada.

    What is an OSBP

    This procedure brings the two neighboring sides under one roof for conducting the procedures regarding cargo exchange between the two. It has been reported that due to the OSBP the procedural time between Kenya and Uganda has reduced to one hour which earlier took up to three days.

    Customs, immigration, and vehicular clearance are all carried out on the same spot making the border crossing nightmare a sleek and efficient step for trade. As being a real trade booster in the Northern and Eastern side of Africa, setting up of such a facility is spreading and funds are being arranged for introducing it to new destinations.

    Sections Present on the spot

    Cargo to Africa is not only taken as a major trade partner to Africa, also its efforts to raise the living standards of people are remarkable. This British funding has made possible to give way for the structural and also deep inside development. Things like build office buildings, roads, and parking yards, cargo verification bays, scanner shed, passenger sheds, targeting booths, warehouse and canopies, ICT networks and hardware, furniture and institutional support has all become possible to maximize the chances of a smooth working environment and proper labor under one roof.

    This new progress is being welcomed by the employees very positively as it is taking off their burden. Also there is very less loss of cargo on the routes that are governed by the OSBP as you do not have to take your cargo from here to there.

     

    Advantages of this system

    The largest plus point of the technology is the reduction of time. Then there is an increased trade and a positive image of especially Uganda which was at the introduction of this process struggling hard to ease of its border and the prices for trade.

    Trade has improved since then and the government is more than appreciative for the support which UK has provided in such a hard time for this country. Other counties that received funding for this new program include Busia, Malaba, Kabanga/Kobero, Holli/Taveta and Mirama Hill/Kagitumba since 2010.

    To read more on technology, regular reading of Shout Me Crunch is recommended.

  • Africa’s Top 5 Largest Ports

    Check out Africa’s Top 5 Largest Ports

    Have a look at the ports Africa uses to handle more than 90 percent of its cargo. Let’s dive into Top five!

    The African continent uses sea cargo to handle more than 90 percent cargo and its imports and exports from across the globe. Being an exceptionally large content out of the seven in total, Africa has many exceptions, where Suez Canal in Egypt is one of these exceptions.

    It is a 102 miles long man-made channel connects two seashores and used for cargo ships coming from Mediterranean sea and red sea region to Arabian sea. This canal saves hundreds of miles travel for those ships.

    Going forward, the majority of countries in the African region are not that developed in the many fields of life and need innovation to be done, the maritime field is one of them. It needs development and innovation.

    Africa is more than 6 percent of the total surface of the planet earth and more than 70 percent states in African region are directly connected to the sea and this way they hold more than 6 percent waterways of the maritime industry.

    More than 6 percent of total traffic out of which half of the container traffic of the world cargo intercepted by the African ports. We have listed top 5 ports of Africa with lots of information about the ports and their facilities and definitely their capacity is also stated below. Let’s see what these ports are and which countries are hosting them.

    Port of Durban, South Africa

    Country: Republic of South Africa

    Province or District: KwaZulu Natal

    Town or City (Closest location): Durban

    Port’s Complete Name: Port of Durban

    Managing Company or Port Authority: Transnet National Ports Authority

    Average vessel calls per year:  4,554

    Container Traffic (TEUs):  40,477,697

    Bulk (Million Tons / year):  34,205,900

    Conventional Berths; 31

    Berth sizes: 228-meter x 9.6 meter deep berths

    Container berths: 10

    Berth sizes: 295-meter x 11.9 meter deep berths

    Bulk Liquid handling Berths: 9

    Berth sizes: 228-meter x 12.8 meter deep berths

    container Facilities Available: Yes

    Container Freight Station (CFS): Yes

    Refrigerated Container Stations: Yes

    Daily Takeoff Capacity (Containers per day): No

    Number of Reefer Stations (connection points): 80

    Cooling chambers: 11 x 27,000 m³

    Pre-cooling funnels:  69 x 9,500 m³

    Open storage:  4,000 m³

    Multi-Purpose Terminals:

    Total Storage capacity = 42,000 m³

    Load rate (Agricultural) = 500 MT / hr.

    Draught available = 9.6 m

    Let’s start with Africa’s most popular and most active general cargo port and it is situated in the South African region, it is Durban port. The Durban port is known as the port of the Durban and situated in the central business region of the Durban. This port is the most important seaport of South Africa and plays an imperative role in the economy of the region.

    The port of Durban is Africa’s largest container ports and handles the most amount of sea traffic than all other seaports of South Africa. On average, the port of Durban hosts more than 4,500 container ships and 996,000 containers every year. More than 45 billion dollars in-out comes through the port of Durban.

    According to the Durban port management authority, the port of Durban handles more than 44 million tons of cargo every year and it is increasing every year. It is one of the most active ports in the African region and operates 24/7-365 and its channel depth is just under 13 meters on the entrance and it is more than 220 meters wide at the same time.

    The width has been widened to 222 meters at the tiniest point. Recently the entrance has been deepened to 19 meters while shallowing to not less than 16 meters inside the bay to handle larger vessels.

    The regular callers on the Durban port are 300 meters long and 37-meter beam carriers, they regularly call on the port. In the daylight, port authority restricts the ships to 243m and 35m due to lower draught levels, reduced to 11.9m to 12.2m.

    During the night, restrictions changed to 200m and beam height to 26m when draught remained to 11.6 meters. The larger vessels carrying around 230,000 dwt can enter the Durban harbor region but the ships larger than 230,000 dwt handled by the outer anchorage.

    The largest vessel handled by the Cargo to Africa is the ULCC tanker weighing 564,650 dwt. This vessel has a length of 458 meters and height of 69 meters received underwater repairs in the outer anchorage region. The terminals and cargo anchorage have different capacities to handle the cargo. There are two types of cargo terminals including one for general purposes and other for grains and bulk handling.

    Multipurpose Terminal:

    The city terminal or the Multi-Purpose Terminal is known as the Maydon Wharf 5 used for the bulk loading and unloading facilities on the port. This port has following capacities

    Total Storage capacity = 42,000 m³

    Load rate (Agricultural) = 500 MT / hr.

    Draught available = 9.6 m

    Subjected to the port authority approval, the vessels also use the rising tide for loading. On the other hand, grain and bulk handling terminals have following facilities. The Maydon Wharf 8 is a dedicated elevator agriculture grain and bulk cargo handling facility for grain products.

    Capacity = 34,560 MT

    Loading rate = 1,200 MT / hr.

    Draught = 10.3 m, 11.5 on rising tide

    Discharge rate = 275 MT / hr.

    Being the largest container port in the African region, it is necessary to discuss the container terminals as well. The container terminal has been upgraded recently and the terminal capacity has been optimized with more sophisticated equipment. The terminal has 20 straddle carriers and three quayside cranes. The upgrade has increased the capacity to 1.6 million tons from 1.3 million tons every year.

    African Seaports are bit slower in the operations and they normally work on 7 to 20 moves per hour, however, the global standard is a bit higher than these cranes. Global standard is 25 moves per hour per crane. Durban port including the South African ports handles more than 23 percent of the total container cargo in Africa.

    Port of Kilindini Harbour Mombasa, Kenya

    Country: Kenya

    Province or District: county of Mombasa

    Town or City (Closest location): Mombasa

    Port’s Complete Name: Kilindini Harbour, Mombasa

    Managing Company or Port Authority: Kenya Ports Authority

    Average vessel calls per year:  1340

    Container Traffic (TEUs):  894,000

    Bulk and breakbulk (Million Tons/year):  30,920,900

    Conventional Berths; 23

    Berth sizes: 2080 meter x 10-13.5 meter deep berths

    Container berths: 6

    Berth sizes: 1204 meter x 13.5 meter deep berths

    Bulk multipurpose Berths: 17

    Berth sizes: 2080 meter x 12.8 meter deep berths

    Container Facilities Available: Yes

    Container Freight Station (CFS): Yes

    Refrigerated Container Stations: no

    Daily Take Off Capacity (Containers per day): 670

    Number of Reefer Stations (connection points): 120

    Bagged Cargo stations: 10

    Bagged Cargo Station Area: 90,597 sq. meters

    General Cargo stations: 10

    General Cargo Station Area: 90,597 sq. meters

    Mombasa port is approximately midway between Middle East ports on the red sea and South African port of Durban. The Mombasa port is one of the largest ports in the African region, indeed the largest port in the east African region. The Mombasa port is Kenya’s largest port and works as the main gateway to central Africa and eastern part of the continent. This port serves more than 120 million population of the hinterlands including Burundi, eastern DRC, Ethiopia, Kenya, South Sudan, Somalia, and the northern part of Tanzania.

    With the length of 7 nautical miles and a width of 300 meters, the Mombasa port has a maximum depth of 15 meters and inner harbor tidal range of 3.5 meters. The port has more than 19 berths where different terminals are constructed to handle bulk cargo, grain cargo, and oil cargo. On the other hand, there are 4 container berths to handle container cargo including 20 to and 40 teu containers. At the same time, Mombasa port has 12 berths for general cargo handling as well.

    The recent development work on the port has increased the modern look. Port has new equipment and new main entrance channel to handle larger vessels. The port has the ability to handle most advanced Panamax vessels. The Mombasa port is ranked at 117th and in the African ports, its grade is 5th. There are many bottlenecks which are still restricting the operations of the port.

    • For specialized services port has fewer berths
    • Manual labor affecting quick services
    • Rainy season is a big game changer at the port. It slows discharge operations,
    • Timely clearance required correct documentation
    • Average wait time is still more than 3 days

    The port has six container berths and all these berths have an open seafront of more than 1204 meters where two container cranes have been installed to load and unload containers. These cranes are fully loaded with most modern gears and gadgets to speed up the operations on the port. The modern cranes are capable of making 25 moves per hour and this world standard for fast business operations at the ports.

    Port of Djibouti

    Country: Djibouti

    Province or District: Djibouti

    Town or City (Closest location): Djibouti

    Port’s Complete Name: Port of Djibouti

    Managing Company or Port Authority: Djibouti Ports Authority

    Average vessel calls per year:  1577

    Container Traffic (TEUs):  744,000

    Bulk and breakbulk (Million Tons/year):  3,772,900

    Conventional Berths; 29

    Bagging line capacity: Berth 15.

    Discharge with silo availability option; 7 MT/day

    Average discharge rate: 300 MT per shift

    Warehouse storage capacities: 70,000 MT

    Bulk Fertilizer Discharge Rate; 3.5mt per day

    Silo availability option; Berth 14

    Container Facilities Available 20ft: Yes

    Container Facilities Available 40ft: Yes

    Container Freight Station (CFS) 20ft: Yes

    Container Freight Station (CFS) 40ft: Yes

    Refrigerated Container Stations 20ft: Yes

    Refrigerated Container Stations 20ft: Yes

    Djibouti is an important country in the African region and its importance increased because of military operations through the ports of Djibouti. Djibouti ports own a crucial standing in geostrategic, military and economic terms. The Ethiopian trade and transshipment of goods pass through the port of Djibouti. The natural protection of the Djibouti waters and excellent nautical conditions play an imperative role in the breakwater structure and the coral reef colonies near the port break up the water agitation and resultantly they offer excellent conditions for shipping. They offer quiet and deep water in the port. The anchorage depth of more than 10-40 meters can be used and it is even protected by the reefs. These reefs also protect the coastal areas from pollution and these are the only ports where agents need to send manifest 48 hours before the call of the ship.

    The DP world management has improved the port performance to the utmost level since their partnership started in 2011. They have introduced different management systems and international managerial expertise to handle the port operations, security, and safety matters and the training of the staff. By these efforts from DP world, the Djibouti port has compliant with the ISPS international ship port facility. More than 28000 security accreditations from the register of Lloyds have been received by the port of Djibouti.

    Lagos, Nigeria

    Country: Nigeria

    Province or District: Apapa Local Government

    Town or City (Closest location):  Lagos Island

    Port’s Complete Name: Port of Djibouti

    Managing Company or Port Authority: APM Terminals/Nigeria Port Authority{NPA}

    Average vessel calls per year:  397

    Container Traffic (TEUs):  465,000

    Conventional Berths; 4

    Berth sizes: 1005 meter x 10-13.5 meter deep berths

    container berths: 4

    Berth sizes: 1005 meter x 13.5 meter deep berths

    Containers Facilities Available for 20ft & 40ft; Yes

    Containers Freight Station available for 20ft & 40ft; Yes

    Refrigerated Container Stations available for 20ft & 40ft; Yes

    Daily containers take-off capacity of both 20ft and 40ft Between 100 & 300

    Number of Reefer Stations (connection points); 620 reefer plugs that serve both 20’s & 40’s

    The port of the Lagos is the economic hub of Nigeria and it is the main player in the GDP growth of the country. The port of Lagos is also known as the Lagos Port Complex of Apapa. This port is located in Apapa area of Lagos in the south-west of Nigeria. The port operational structure is based on the berths and cargo handling stacking along with massive cargo storage areas.

    The port of Lagos is one of the leading ports in the African region and it is one of the busiest ports as well. The Nigerian port authority controls the port operations by splitting the port into three different divisions. The Lagos port division is the main section of the port and it is a channel next to the Lagos Island. Apapa port is the site for container terminals and tin can port, these sites are located in Badagry Creek.

    Suez Canal, Egypt

    Country; Egypt

    Province or District; Suez

    Town or City (Closest location) with Distance (km); Suez

    Port’s Complete Name; Port of Suez (before Port Tewfiq)

    Managing Company or Port Authority; Red Sea Port Authority

    Vessel Calls; 300

    Container Traffic (TEUs); 4,200,000

    Handling Figures Bulk and Break Bulk; Bulk (MT) 19,154,524

    Conventional Berth; 48

    Berth length; 6532 sq. meter

    Berth depth; 12.81

    Container Berths; 4

    Berth size; 732 sq. meter

    Berth depth; 12.49

    Silo Berths; 3

    Berth size; 695 sq. meter

    Berth depth; 10.00

    The Suez Canal is a canal connecting the Mediterranean Sea with the Gulf of Suez through its 101 miles length. This is also called a northern branch of the red sea. The port is also located in the northern part of the canal.

    This area is situated in the southern gate if the canal. It is also an imaginary border extending from Ras Masala to Ras El-Sadat along the canal. The northern coast of the area included in the region till the canal starts. The canal was started in 1869 and since its launch; it has allowed ships to use a shorter route between Europe and Asia.

    This canal has reduced thousands of miles distance and skipped the navigation around African continent and reduced the sea voyage between the Arabian Sea and Europe. The SCADA or the Suez Canal Axis development program aimed at the development and the expansion of the canal. This canal will be further expanded under this project to facilitate the sea traffic.

    The passenger vessels transit system has been controlled at the port of the Suez quay and it accommodates all the passenger transit of up to 10 meters. There are no restrictions applied to the 8.2-meter ships and they can enjoy a free float in the canal.

    However, a written application to the SCA needs to be submitted with the number of passengers on board. The canal authority also demands a written proof of the activities of the passengers on the ship in the same application that who they are and why they are on the ship.

    The port authority listens to the ship on the radio frequency of 156,800 MHz for security purposes as there was a threat to the canal in previous years. The port handles more than 970 million tons of cargo on average every year and it is a midway stop to all traffic between Europe and South Asia.

  • Things to Consider for Business in South Africa

    Prepare yourself before hand for choosing Africa as a Business destination

    South Africa is considered as a very fruitful business destination. Especially when we are talking about UK trade with the region, South Africa becomes prominent. As it is the major trading partner with UK in Africa. This does not mean that UK is not in trade with other areas as there are new markets emerging in sub-Saharan region and Kenya, Nigeria already in trade relation with UK.

    But as South Africa gets the largest share of trade, it has become prominent in Cargo to Africa. This region is very rich in agriculture and also the environment for doing business is favorable which attracts the investors.

    How the Task is done?

    Visiting a new country, unknown people, economic system and infrastructure, all become a big hurdle. To overcome all these difficulties, UK government appoints parliamentarians from among the political parties to lead business delegations to other countries where Britain wants to boost trade and business for bilateral relations. With this facility, present making place in the new environment becomes easy. Same is done in case of Africa but keeping in mind the trade area and its need.

    As people are now aware of their purchasing power and decision making has become strong for trusting or liking a product. So, hitting the right market is very important to be successful to improve air and sea cargo growth.

    Current Exports of UK to South Africa:

    At present, the major exports of UK to South Africa are fuel, machinery, vehicle, medical, pharmaceuticals, and food. There is plenty of scope for UK businesses in areas like energy, transport, health care and education sectors. Africa is not a fully developed region, and hence requires help from outside its premises for keeping things going and at the same time, help is needed to make the situation better in every sector. Trade is the best way to do this as you get something of your interest in return.

    For example, it is being said that after Brexit, there are chances of increased imports of fruits and vegetables from Africa which is the demand of UK at present as their own production has fallen to a large extent, and thus they are relying on imports for fulfilling the need of their people.

    What the newcomer has to face:

    As any other region, there are obstacles that can stop or slow down your efforts of establishing a business in the land. There is a high rate of unemployment in the country and people are not assured of getting a job and maintaining it for longer. Then the poverty factor also becomes a challenge for the businessman as the power of purchase may not be as it was expected. Another very important factor is the skill and capacity shortage, which is there due to less opportunity.

    Lack of infrastructure is also a big problem that makes it difficult to adjust in this region. There are no solid and proper working departments for resolving energy, water and transport areas. High crime rate becomes another problem the businessmen have to face while doing business and keeping a close check on such activities is necessary. Then there is legislation, the Broad-Based Black Economic Empowerment; which the investor has to tackle while setting a company.

  • How Britain is tackling African Migrants and exports to the region?

    Permanent steps are indispensable in the present condition to ensure stability

    Africa is not a place where the population is well fed and has plenty of opportunities to earn their lively hood like Cargo to Africa is a big opportunity to grow the business. Instead, it is a land where poverty rules and children and older sector dies of lack of nutrition. In such a case, people who educate with lots of hard work and facing a bundle of problems do not want to remain in the continent or in their respective country and migrate to other areas which have more opportunities.

    In this situation, the welcoming country and in this case Britain is facing problems and they are now starting to think over the situation to improve this crisis which is making their own citizens suffer.

    Main Reasons for Migration:

    No one wants to leave the place where he/she is born and live alone while facing trouble and devoid of a decent living place. But not only Africa, other poor countries lacking jobs and decent workstations put their occupiers in such a situation. On one side the job seeking personals are growing and on the other hand, prospects are becoming less and less. In such circumstances, people either go to another country in the continent or travel towards another continent. Lack of industry joblessness is making the people flee from the land because no one can see their family die due to lack of necessities of life which is their right.

    Ray of Hope:

    At present, the only hope for the people is the increasing trade international market. But the problem over here is that exchange of goods is not profitable till now as the money earn is again spent to trade for the essential items that are needed for leading a decent life.

    So the trade is a positive thing for small Logistic businesses but the overall situation remains the same on the national level and when this condition will improve only then change in the living standard of the citizens occur.

    Lack of Infrastructure and Common Welfare:

    These two things are the main hurdles which are responsible for poor economic conditions of a country. These problems result in lack of communication and hence no one wants to work for the welfare of a common man, instead, everyone struggles for filling their own pockets. An Intelligent decision by the government of African countries would be to look for flaws within and rectify them to decrease pressure on themselves and on the helping country.

    Direction Britain is following

    The UK government is not forcing the immigrants out of its boundaries but it certainly is considering to tight the border conditions for permitting migrants in the country. The country is already in a state of uncertainty due to Brexit due in 2019 and is simultaneously dealing with many affairs and this crucial matter is making things difficult to be handled. Also, UK is urging the African authorities to reach the root cause and eliminate the reason for fleeing of its population.

    Industries should be put up to increase job opportunities so that the fresh graduates have a livelihood whenever they finish their university. This permanent solution is the only way which can reduce immigration as handling such a big number of immigrants from every country is not affordable.

  • Africa is Emerging as a Growing Economy

    Struggling hard for extending the trade internationally

    The continent which was once a severe depiction of poverty and lack of food combined with basic necessities of life missing, is now striving hard to reach the point where stability to some extent is being administered. There are now many countries apart from South Africa that are straightening up their matters to take part in the global trade and take it to the track of development and advancement. In the past, only 5 countries had stock markets and now 16 of them have established stock markets individually in the sub-Saharan region.

    Where the rest of the world is seeing a downfall in economy, one may think that how nay one be can interested in investing Africa stock markets. But this is not the case, instead the investments have risen since last few months and they are still going upwards.

    How Global Trade Influence Living Standards:

    Why a country should open its borders for international trade and why take this hectic job. When a country starts trade globally, new opportunities starts to open. They are not in the shape of jobs, the access to new products and ways become available. Services can be exchanged not only in the shape of new technologies also in respect of banking and trading documentation.

    Same has been happening in Africa. As global access to new services and products become possible Africa is improving itself gradually. Also the student exchange program that result from the regional trade depicts a total new image of a country. The educated class of Africa is presenting Africa in a totally new way and the International community is building faith in investing. Still it is a long way to go for Africa but in the present circumstances at least the signs are showing off.

    Why to Invest in Africa:

    There are some very simple and straight forward reasons for why the international community should invest and increase trade in Africa. One reason is its rich soil which can produce some very tasty foods and by introducing projects for agriculture one can benefit from it. This will not only benefit on local basis but it will also increase global trade. Another reason is its richness in minerals and chemicals, in which many countries are interested for their use. As Africa has an international language in most areas and their way of doing business also tally, the European countries find it easy to adjust. Although the factor of risk is there, but then, risk is a part of business.

    What is the reason of growth?

    The main reason of growth is the growing middle class in Africa. The consumer spending is increasing as the middle class is contributing more and more. The analysis shows that even the minerals and resource demand do not give that much GDP as this investment by this class. And on the other hand which stops all the advancement and development process is the factor of corruption, lack of infrastructure and government instability. Despite of being rich in natural resources, this vast land cannot prosper due to these serious issues.

  • New Developments in UK Africa Trade

    In what direction the two trading partners are heading?

    Africa UK trade has a long history to trace back. Both are at present members of EU and are one of the leading traders, not only to each other but also with other countries as well. With Brexit underway, the situation has changed and there are some uncertainties as well as confirmations from both the side. But what will happen in actual situation is a question that will be answered only when the Brexit will happen in 2019. There are some changes as well as on the way agreements that are to be finalized but not without considering many more matters that are coming in the way.

    Both the sides are trying hard to have agreements that do not hinder in the way of trade with other parties as it will not be in favor of UK as well as Africa especially South Africa as being a major trading partner. Africa does not want to disturb its relations with EU as well as UK and it is creating a difficult situation for Africa.

    EPA and ongoing Discussions:

    EPA is not an ordinary agreement for Africa. It took almost ten years to negotiate the treaty and six Southern African countries are a part of this. Due to this agreement, the access to EU for South Africa in agricultural products has improved in return of recognition of geographical indications on European food stuff etc.

    What South Africa want is that whatever agreement between UK cargo and Cargo to Africa is going to be, it follows the line of hard-earned EPA. As it is Brexit UK and not Africa is exiting European Union, the situation is complicated and Africa has to maintain a balance between the two as it does not want to leave any of them. British High Commissioner to South Africa Nigel Casey has confirmed that they are not going to allow any gap in the agreement and make it fall away for Africa.

    Time Conscious:

    UK officials are also concerned about time frame before Brexit. The agreements that are going to take place not only concern South Africa but also other southern African countries that are involved in the EPA.

    So, if the talks are going to commence, they have to spread to all the countries and not only to one and the officials intend to do it necessarily. But until unless Britain is a part of EU, these agreements cannot be made effective or reach a final point.

    What more to add:

    Casey said that EPA only dealt with trade of products, but if the talks are going to be only between the two then chances of including services are also there. These services form a large part of UK and African economies and will prove to be beneficent for both.

    But there are constraints that hinder the easy flow of from one end to another and discussions are taking place on the two options present to ease them. One is whether to make government-to-government agreement or the ones that are sector specific. Every effort is being done to achieve arrangements to avoid any gap in the smooth flow of trade during the transfer.

  • Cargo Trade Agreements Between UK and South Africa

    Especial emphasis is being put on the future of trade relations after Brexit

    South Africa is the largest trade partner of UK and the second largest in EU. With such a big trade relations to both the sides, there are certainly insecurities that are leading to more and more meetings between the two countries regarding the arrangements that are to be made to lessen the effect of Brexit on trade of both the countries. An interim arrangement was being discussed based on the already existing EU partnership deal. This is to ensure that the transfer will not hurt the trading relation and the procedure will be smooth and without complications to streamline Cargo to Africa. Because both are strong trade partners, such actions are obligatory to ensure harmony.

    An Intelligent Decision is needed:

    What is expected from both the sides is to take this time period as a fruitful era. There are still two years before Brexit and lot will be decided by UK as well the trading partners. There will be a total loss if there is any decision that can harm these trade relationships in any way. Both UK and South Africa are in very good positions to reach a point where both can prosper more in trade and make most out of the situation.

    The increasing meetings and revising agreements are very important steps and both the countries should act wisely to reach an interim agreement that will support the trade and cargo from both means like sea cargo and air cargo, while the situation becomes clear after a hard or soft Brexit whatever the case is. Countries are trying to secure their relations with UK to make things move as they are and not have any harm due to the process.

    What is UK expecting of South Africa?

    Many of us always talk about the other countries but what about UK? While others are making arrangements to secure their ends, UK also demands something in return. There are tariff rates which are fixed for the domestic commodities to save them from the competitive imports in the economic partnership agreement of EU. Lower tariff is applied on those products to come in but in certain quota, any volume above the decided one is considered prohibitive traffic.

    UK wants SA to discuss this point that tariff rate volumes remain the same and not decrease after Brexit. EU has not increased them even if there is an increase in the members so the expectation form the UK side is that South Africa will not reduce it when the time comes.

    Ensuring uninterrupted Trade:

    Because of such strong ties, none of the two parties want to have a negative effect of Brexit on the trade side. The interim arrangement will ensure that the trade between the two countries remains smooth and uninterrupted. A halt in the trade will mean a heck of loss for both the sides.

    The increasing meetings and this arrangement also hints towards how important are these two countries for each others trade. The South African Customs Union (SACU) has already sent a letter to UK to make a suggestion of discussions between the two nations to establish an interim agreement to avoid any distasteful experiences for both sides in terms of trade.

  • UK Reaffirming Trade Relations with Africa

    A new trade relation is said to trigger after Brexit

    Africa is not a highly developed region. Most areas in this region are underdeveloped and rely highly on foreign aid. So it can be said that the extreme conditions in African states decide the trade, especially in areas that are largely affected by draught and malnutrition due to absence of enough food. The higher spectrum is represented by South Africa that is the leading trade body in the region, while areas like Burundi have the least trading power.

    Countries that rely heavily on imports and cargo services to run the state are always insecure due to changing deals internationally; so is the case with Africa. The uncertain conditions prevailing after the announcement of Brexit has raised questions and UK is leaving no stone unturned to convey a firm message of no harm to be established on its relationship with African countries.

    Internal Issues:

    African extremity struck regions always faces the misfortune of not having enough food and life facilities to move forward. The internal problems grip the region so tightly that coming out becomes impossible and foreign aid becomes the only means for relief. So the African countries which are underdeveloped, import medicines as well as food items to survive such a tough life.

    These problems hinders the way for this region to develop fully as it is rich in its natural resources but without a proper infrastructure and policy, the people cannot fully take advantage of its own wherewithal. Machinery and equipments are regularly imported with the notion of having access to its resources with the help of these equipments.

    Brexit and the uncertain trade environment answered:

    UK has never denied having a positive and growing trade relation with Cargo to Africa. It has been cleared that Brexit means exit with Europe and not with Africa. This clearly indicates that in no condition UK has the idea of breaking ties with commonwealth countries in Europe. The delegation to Africa has affirmed that it will not end its commitment to the continent. Furthermore delegations to different regions in the continent are being sent by the African states so that a positive message can be conveyed of the firm relations of UK and the region.

    Relations with South Africa:

    The UK government has laid special emphasis on its relations with South Africa which is its largest economic and political partner in the continent. As being the main contributor in the economy of Africa and a developed region in this continent, it attracts trade from around the world. This region is very important for the economy of this continent. The present Prime Minister of UK has said very clearly that her government does not intend to become isolated from the world and follow the foot steps of others.

    Importance given to Africa by UK:

    The importance of trade between Africa and UK can be clearly seen by the visit of UK officials to the continent especially South Africa.

    This was a short visit and was carried out immediately after the announcement of Brexit. The other two countries that were visited on that short trip were Japan and South Korea. These and future tours were meant to confirm strong ties of UK globally.

  • South Africa Cargo Shipping Tribulations

    How to circumvent from the doubtful situations?

    There are uncertainties present in mind of the sender, like will the parcel reach its destination in one piece and in its original form and not get misplaced during the journey. Same is the case when you are sending a gift or cargo from UK to Africa. The journey over here is not risk-free, unfortunately, there are many things that can delay and make the work difficult.

    People love to send gifts to their loved ones back in the hometown or for those who are away from their homes for a particular reason. The safe delivery of goods is not an impossible thing when you are considering this region. But some special cares should be taken to make sure that the consignment reaches its final point without any harm.

    Packaging:

    Packing is the foremost thing in sending a parcel anywhere in the world. In the case of South African countries, the packing necessities change a little bit to add extra security to the goods to be transferred. First of all, the parcel should not be in a gift wrapping, there should be a secure box in which the gift is placed.

    Extra places in the box should be filled to avoid your things moving here and there and get damaged and also proper packing will avoid a delay in custom clearance. If there is an item which is liable to be broken during the course then an extra box should be added and tapped properly to avoid any future distress.

    Choose the Freighter Carefully:

    There is a high rate of theft in this region and thieves, very cunningly, work in the freight companies or customs and have a whole access to the cargo shipping that enters the borders of consignee’s country. They very skillfully loot the whole package or the items inside and leave only the outer packing or in other cases, half of the gift boxes vanish from the port or the warehouse.

    In such a case, to avoid this situation choose a freighter very carefully and trust only the recommended one with high ratings by a friend or a colleague etc. Also, pack the gift in a big box that makes your parcel weigh 1 kg or more. As heavy parcels get checked under strict custom clearance and in special care and are placed separately. Also, the tracking number is very important and cargo with a tracking id and insurance have fewer chances of disappearing as it makes the parcel more valuable and is taken carefully and properly.

    Other Things to consider:

    Apart from this, there are other things that can make the delivery of the parcel slow. Customs duty on taxable items changes vigorously and in some cases, the recipient has to pay those extra charges to clear the package from the port as the change can even take place when the parcel is on its way to the South African destination.

    Secondly, a broader survey of paperwork should be done so that a complete documentation is present to satisfy the customs clearance and missing papers do not delay your gift to reach its actual owner. A reliable freighter with a properly trained team will make every step easier for you.

  • A New Cargo Terminal Soon to Open in Kenya

    Cargo Exchange of dry and perishable goods will be made efficient through this new entry

    Africa mainly relies on sea cargo transfer for its imports and exports to take place. Building its air freight capacity will help in more international trade through air which will help in attracting more and more clients. This will also help to build strong air cargo services.

    This news is like a fresh air for the air cargo industry in Africa, which will give a separate portion for the perishable and dry goods in newly build sections. Another plus point is that the exporters and importers will be able to do the exchange of these goods knowing that their goods are safe and will reach in desired condition.

    The location:

    The terminal is set to open at Kenya’s Jomo Kenyatta International airport in Nairobi, East Africa. The opening of the terminal is due in September 2018 which will provide the capacity of 80,000 tons, its upgrade to 150,000 tons is already planned.

    The project is being handled by Germany’s Acunis, a joint venture between Unitechnik and Amova. This will be their second project as currently they are building the Africa’s largest cargo terminal for Ethiopian Airlines in Addis Ababa Airport.

    What will change after the completion?

    This terminal will help in the faster exchange of perishable and dry goods in the future. The export of such products will become easy and quick and above all reliable. These goods may involve fruits, vegetables, other edibles and spices.

    It will be a trade opener for Kenya with modern facilities as temperature controlled environment for the goods with limited shelf life, a warehouse which will accommodate the dry goods as well and make the whole process more efficient and according to the need of the day.

    Challenges Faced in Planning:

    The Acunis spokesman said that the major challenge they faced was to adjust all the areas in one place which was available for the task. The warehouse, custom clearance and break rooms are in a compact space. They are going to choose the option of dividing the whole area in two sections that is one for dry goods and the other for perishable ones.

    These storages are kept the same in case of layout the only difference is that the perishable goods section is regulated with temperature controlled environment by keeping it down to 2 degree centigrade. Each storage area is loaded with high-bay store, a Euro pallet store, a small parts warehouse and a section for bulky goods.

    What more help is being provided:

    A work of this nature reaches its completion with ease if proper machinery is employed in the project. The Acunis is also providing the conveying and handling systems for the completion of the interior of the structure. These machineries include roller conveyers and industrial trucks, work stations as well as loading and unloading bridges for trucks. This will surely boost Cargo to Africa.

    After all the hard work being put in the project it will prove to be fruitful in the future and make way for the advancement in the air cargo services in the African region. This will also prove a job opener for many citizens who are in search of a decent living.