Cargo To Africa

Tag: Sea ports

  • Morocco plans to lead the African Trade

    An influential African Economy: Morocco

    Seaports are the cargo loading and discharging channels for a country and play a very crucial role in its business. How much cargo handling capacity, a seaport has and how many vessels come to a seaport is the efficiency determining factors of a seaport.

    Cargo to Morocco, an important African country, borders the Atlantic Ocean and the Mediterranean Sea is influenced by Berber Arabian and Western cultures.

    Trade constitutes more than 80% of the total Moroccan GDP. Morocco stands at number 61st on the world countries list with the GDP (nominal) per capita of US$ 3151.

    Trading Partners of Morocco

    Being an open economy, almost 98% of the Moroccan trade is carried out by sea cargo and its exports partners include Spain, France, Italy, United States, India Turkey, Germany, Brazil and Netherlands. On the other hand, Spain, France, China, United States, Germany, Italy, Turkey, Portugal, Russia and Saudi Arabia are its main import partners.

    Trade balance, including services, of Morocco for the year 2016 is about US$ -10937. To meet and eradicate this much trade deficit Morocco is continually working on trade development programs and have set a Ports Expansion Plan to generate more cargo to Morocco and cargo from Morocco capacity.

    Tanger-Med port: The Largest Transhipment Port of Africa

    Tanger-Med port terminals 1 and 2 can handle 8-millions of containers, 0.7 millions of trucks, 2 millions of automobiles and 10 million metric tons of oil products. This much cargo handling capacity with the transshipment facility make Tanger-Med the largest transshipment Sea ports of Africa.

    Morocco: A major Trading Nation

    The geographical location that nature has awarded Morocco is unmatchable and have potential to make it grow as a major trading nation. Through 15 commercial ports of the country, about 100 million tons per annum of merchandise cargo is transported.

    To lead the trade-world, Morocco has met its deep port issues and still working on deep ports expansions. Almost 38% of the Moroccan trade is carried out at the port of Casablanca, only.

    Stratégie Nationale Portuaire 2030: National Port Strategy

    The Moroccan government is well aware of the timely need of new ports. The framework of Stratégie Nationale Portuaire 2030 is based on objectives to enhance cargo handling capacity so that Morocco would serve as cargo to Africa gateway in coming years.

    Cargo handling capacity would be increased by meeting international standards and having world-class ports. This framework plans to establish 6 new ports with the modern infrastructure and IT equipment. Tensift, Souss, Doukkala, Casablanca, Abda and Kenitra are the intending planned ports.

    Game Changers in the Region: Safi and Nador-Med Ports

    Safi and Nador-West Med ports are currently under construction. The Safi port has its first phase completed in 2017 and is mainly serving coal imports for a local coal-run power plant. The coal power plant utilizes 3.5 million tons of coal per year and this much of tonnage would be imported through Safi port and in addition the by-product of power generation, phosphorus would be exported.

    The Nador-West Med port would be a deep-water port and is expected to start operations in 2019. Funds for the initial phase of the project are to be acquired from private investments while the country has already acquired 10% of the total amount from The African Development Bank, amounting to US$ 113 million.

    Supportive Laws to Protect Private-Public Interest

    Financing of new ports and up-gradation of old ports is expected to come from private-public cooperation. The country is improving its law to facilitate the transfer of maritime services to the private sector.

    Tanger-Med port is established under law 15-02 passed by the government as a Private-Public partnership. Under the same law, Marsa Maroc, the operator of ports in Morocco has sold 40% of its shares to private companies. It helped in both, generating funds and maintaining a healthy competition.

    Infrastructural expansion of Moroccan seaports would not only increase the country’s trade but would also ensure overall cargo to Africa from the UK or other nations as a communal benefit to Africa.

  • Djibouti Launched Africa’s largest Free Trade Zone

    The first episode of a free-trade zone of Africa looks pretty astonishing on paper

    China is clearing its way to secure its position as a global trade leader and launching the first phase of Africa’s prodigious free-trade zone is another milestone in this regard.

    On July 5, Djibouti unbolted the first episode of the Djibouti International Free Trade Zone (DIFTZ), a $3.5 billion project that stretches an area of 4,800 hectares.

    Enhancement of financial support

    Having whereabouts at the intersection of the Red Sea and the Gulf of Aden in the Horn of Africa, Djibouti has given long notices of its geostrategic location as a critical entry point into African markets.

    As a petty, barren country, with a population less than one million, it has attracted military installations from various nations including both China and the US. The $370 million, 240-hectare pilot zone comprises four industrial swarms which will subject to trade and logistics, export processing, business and financial support services, as well as concocting and duty-free merchandise retail.

    The opening of the zone is being in tune with Djibouti’s hosting of the Africa-China Economic Forum, which showed the way to government officials and the private sector to have the designs of promoting economic collaboration.

    The free-trade zone as a zone of hope

    Djibouti wishes the international trade zone will not only perk its position up as a trade and logistics hub but will also put its youth in operation. On top of that, it’s hoping it will provide a strategic base for global businesses hankering to access the rapidly growing African market.

    Along with Djibouti, the DIFTZ will be managed with three other Chinese companies, namely: China Merchants Group, Dalian Port Authority, and IZP. President Ismail Omar Guelleh lauded the efforts of the Chinese to invest in Africa, calling the trade area “a zone of hope” in an event attended by leaders cargo from UK to Rwanda , Sudan, Somalia, Ethiopia, and the African Union.

    The DIFTZ zone is also a fundamental part of the “Belt and Road” initiative, the multi-trillion Chinese project that aims to sink money into the infrastructure projects including railways and power grids in central, west, and southern Asia, as well Africa and Europe.

    As part of this mega project, China finished credit for and built a $4 billion, 756 kilometres (470 miles) railway between Djibouti and landlocked Addis Ababa, the continent’s first transnational electric railway.

    This year, after calling its contract off with the Dubai-based DP World, Djibouti also signed an agreement to boost up the number of cargo containers handled at the port with the Singapore-rooted Pacific International Lines that toil with China Merchants Port stocks, which thus far has a stake in the Djibouti port.

    But China’s continuous involvement in Djibouti has raised concerns with American officials worried Beijing could strong-arm them from the location of their strategic base Camp Lemonier.

    And much like Sri Lanka had to hand over a strategic port after struggling to pay its debts to Chinese firms, Djibouti is also among several nations who might be lured into China’s “debt trap,” threatening the nation’s long-term sovereignty.

  • East African Exports to European Union grew by U.S. $200 Million

    It is an encouraging news for the East African trade enthusiasts

    There is no denying to the fact that economy depends on trade a lot and healthy trade and cargo activities in any region are bound to boost the economy of that region. The poverty-ridden East African region received a good news in this regard.

    According to ITC, the East African region exported goods worth more than $2.5 billion in 2017, which stood last year at $2.3 billion. Even though it is still not a very big amount but things are significantly improving and the stagnancy in the region’s economy no longer seems to exist.

    East African Countries need to set their priorities

    East Africa is a big region and a home to 21 countries. Some of the notable countries of this region are Zimbabwe, Kenya, Ethiopia, Somalia, and Madagascar and Uganda. These countries contribute a lot to the overall economy of Africa.

    Amid the efforts to harmonise standards in the region, this rise in exports is no less than an achievement. Nevertheless, according to International Trade Centre, the numbers could have been even better, had the East African countries sorted out the issue of harmonising standards quickly.

    Brexit; a Midas touch for Africa

    After the pole for Brexit, European Union is finding ways to boost trade and logistics in order to curtail the effects of the absence of Britain. Therefore, it is a golden chance for Africa to capitalize on this opportunity and get into more trade agreements and MOUs with EU and UK.

    The director Productive Sectors of the East African Community (EAC), Mr Jean Baptiste said: “To tap into the EU market, the region needs to benchmark standards with those in the European Union and East African products should meet the requirements of the European consumers.”

    Cargo for the trade is like milk for the tea

    Cargo or freight movement contribute a great deal to the trade activities. Cargo to Africa from Europe has seen major improvements in recent years. However, it can be made go further by improving air and sea cargo facilities.

    The Airlines functioning in East Africa have not produced an up to the mark performance due to some ground realities which are needed to be eradicated. Private airline service rather than national flag carriers can help a lot in connecting east Africa to the rest of the world.

    The permanent connectivity offered by the aviation is imperative for the economy to flourish. Aviation creates jobs and improves trades and upgrade the living standards of the general population. The revenue generated by the airlines also adds to the growth of an economy.

    In the similar fashion, seaports play a very important role in the sea cargo of a country. African seaports are a mess and they handle cargo is not a very professional way.

    However, there are some exceptions too such as the Port of Mombasa, which registered a new record in container operations by discharging 3872 TEUS in a matter of only eight hours. Other African port authorities should learn from this and implement similar planning at their ports.

  • Kenya has big plans for big cargo business

    To gain more, have to work more

    Extension of the Mombasa port in course of recent years has empowered it to deal with bigger volumes of freight, making it appealing for a huge worldwide delivery line. KPA (Kenya Ports Authority) says that huge change in the aptitude of tasks is another significant reason that we have gotten the attention of bigger vessels.
    Six of the main ten container shipping services Maersk, Mediterranean Shipping Company, CMA-CGM, China Ocean Shipping Company (COSCO) and Evergreen Shipping line are currently calling at the port.

    Two weeks prior, the port got a container vessel MvSpero, worked by Hapag-Lloyd from German delivery service, denoting the association’s beginning deeds to East Africa. Hapag-Lloyd is the world’s 6th biggest container carrier when it comes to vessel limit.

    Mombasa Port Development Program

    KPA Managing Director Catherine Mturi Wairi said that “The important point is, calling of well-known shipping services for the port is a sign of faith which international shipping and the business group has in the Mombasa port. She credited this to a pile of changes accomplished under the Mombasa Port Development Program (MPDP).

    The MPDP initiated in 2005 as a component of the actualization of a 25-year Port Master Plan that concentrated on a limited up gradation of expansion in cargo works. Another segment of the MPDP is consumption of current invention in the port’s systems.

    Usage of this program has kept on increasing abilities in tasks, reducing cargo ship reversal time from 4.9 days a couple of years before to 2.5 days. Stay time of container is decreased from 7.1 days to 3.5 days.

    KPA senior public relation officer Hajj Masemo was expecting much more shipping lines amenity at the port within few years and said that “We are connected with various shipping and cargo lines and there is the expectation that soon they will start calling at the port. Moreover, Hapag Lloyd which called with a small quantity of a vessel of 1,700 TEUs will get a greater ship of up to 3,000 TEUs,” he said.

    The experts are restoring everyone on dock at the port, so they can deal with container vessels while an expansion of the Standard Gauge Railway into the port which is supposed to help empty cargo swiftly and more efficiently in professional manners.

    Rise in Cargo to Industry

    From past many years, Mombasa port has seen an enormous rise in cargo quantum, dealing with 27 million tons in 2017 up from 14.4 million tons in 2006. It is assumed that it could be increased up to 44.03 million tons by 2025 and 56.04 million tons by 2030.

    According to experts that huge rise of that much quantum is surely the point where we require some serious and professional investors who are willing and keen to invest in our docks and help us to upgrade the capacity of our docks and ports.

    KPA is nowadays dealing with phase one of the second container terminal which was authorized in 2016 which has an ability to deal with 500,000 tones. This surely is the biggest project which government has contained at the port with alternate tasks for improvement.