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FREIGHT & TRADING WEEKLY

For import / export decision-makers FRIDAY 27 April 2018 NO. 2292

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NRCS rubs salt into the wound with proposed 6% increase

The delivery of nine new straddle carriers transported aboard the Chinese-owned Zhen Hua 8 at the Port of East London last Saturday marked a milestone for the port. The 220m multi-purpose, heavy load carrier, with a beam of 42.3 metres, is the widest vessel ever to dock at East London.

The port currently has a beam restriction of 32.2 metres and safely docking the massive carrier required “military-precision planning and execution”, with a range of special arrangements and conditions put in place.

“This was a big moment for

East London,” said Transnet National Ports Authority (TNPA) East London port manager Sharon Sijako. “Although this was a once-off concession, it was important for East London to show the rest of the country, and indeed the international shipping fraternity, that we have the expert skill and expertise on hand to safely and efficiently dock vessels of these dimensions.”

She said the entire operation had proceeded smoothly and the straddle carriers would join the current fleet at the container terminal.

New straddles stretch boundaries

The Zhen Hua 8 discharging the nine straddle carriers at the Port of East London.

Joy Orlek

There appears to be no resolution in sight to the ongoing saga of delays in the issuing of Letters of Authority by the National Regulator for Compulsory Specifications.

And to add insult to injury, the organisation has applied for a 6% increase in LOA costs and levies effective from April 1.

“Technically it hasn’t been implemented because it hasn’t yet been approved by Treasury

and the Department of Trade & Industry (dti), but we expect they will approve it and charge it retrospectively,” Mark Saunders of the SA Domestic Appliance Association (Sada) told FTW.

Sada has lodged an objection on the grounds that this cannot be justified in light of the current service levels.

According to Saunders the NRCS has not been meeting its 120-day turnaround target and

the situation has been further aggravated by a new requirement implemented last year for certain appliances that now require a safety certificate as well as an energy efficiency certificate. “This

To page 12

2 | FRIDAY April 27 2018

DUTY CALLS

These statements have been edited because of space constraints. For the full versions go to ftwonline.co.za. Note: This is a non-comprehensive statement of the law. No liability can be accepted for errors and omissions.

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Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY

Publisher Anton Marsh

EditorialEditor Joy OrlekAssistant Editor Liesl VenterJhb Correspondent Adele MackenzieJournalist Nicole JacobsPhotographer Shannon Van Zyl

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Hexagon Screws Safeguard InvestigationOn 20 April the International Trade Administration Commission of South Africa (Itac) initiated a safeguard investigation into increased imports of other screws fully threaded with hexagon heads made of steel, classifiable under tariff subheading 7318.15.39, on which comment is due by 20 June.

The application was lodged by the South African Iron and Steel Institute (SAISI) and the South African Fasteners Manufacturers’ Association (SAFMA) on behalf of its members CBC Fasteners (Pty) Ltd (CBC) and Transvaal Pressed Nuts Bolts and Rivets (Pty) Ltd (TPN). SAISI serves the interests of the primary steel industry, whilst TPN and CBC are the largest producers of hexagon screws.

Payment of Duty and its Rate RuleOn 20 April the South African Revenue Service (Sars) announced the amendment of rule 47 to the Customs and

Excise Act, 1961 ‘Payment of duty and rate of duty applicable’, effective from 20 April, through the substitution for rule 47.03(a)(v) of the following: ‘(v) All other classes or kinds of alcoholic beverages not mentioned above, after a period of 36 months, but within a period of 48 months.’

Reporting of conveyances and goodsSars on 20 April announced the amendment of the Rules and the Forms to the Act relating to the reporting of conveyances and goods, which is effective from 20 April. Days earlier, on 16 April, Sars released its RCG User Implementation Guide.

The forms relate to form DA 8 – Application for registration to submit report for sea cargo; form DA 8A – Application for registration to submit report for air cargo; form DA 8B – Application for registration to submit report for rail cargo; and form DA 8C – Application for registration to submit report for road cargo.Accreditation of

Clients – Preferred TraderOn 20 April Sars announced the amendments of Rule 64E to the Act, ‘Accreditation of clients’ and specifically to Rule 64E.14 to the Act, ‘Benefits applicable to Level 2 accredited client status’, which is effective on 20 April.

WTO Certificates of Origin ForumWorld Trade Organisation (WTO) members and private sector representatives met on 18 April to discuss the challenges faced by exporters in complying with requirements related to certificates of origin.

Although importers need to obtain certificates of origin to benefit under preferential trade arrangements, in the absence of trade preferences, certificates of origin are still required for reasons such as enforcing anti-dumping measures or ensuring application of most favoured nation (MFN) tariff treatment for imports from

WTO members. In addition, non-preferential rules of origin are also linked to labelling obligations and the application of quotas.

According to WTO agreements, WTO members should only require a certificate of origin when they are “strictly indispensable”. Several speakers noted that certificates of origin also generated additional cost and delays for businesses.

Customs - Police Cooperation Handbook On 17 April the World Customs Organisation (WCO) and INTERPOL released their handbook developed to enhance cooperation and collaboration between their two agencies.

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Users of South African ports are voting with their computer mice for Transnet National Port Authority’s Order to Cash (OTC) system which replaced PortsOnline in August last year.

“Since the inception of the OTC solution in TNPA, the adoption rate has grown rapidly,” says TNPA's Tinyiko Freeman Mabasa.

“The take-up and usage of the new system is impressive, with 6087 active OTC users compared to PortsOnline which only had 1768 active users.”

All PortsOnline users have migrated to OTC, which is

used to submit documentation such as cargo dues, orders, manifests and reports online.

Mike Walwyn, chairman of the Cape’s Port Liaison Forum, says users have told him they far prefer OTC to the old system.

He is using it in his own operation.

“It was easy to switch over and so far, no problems have been experienced,” he said.

Mabasa said OTC response times were too slow when the system first went live.

This had been resolved in the second week, and the system was now meeting all the targeted objectives and timelines, he told FTW.

OTC was implemented

to provide TNPA customers with what is described as “an omni channel and interactive e-commerce platform including a more user-friendly interface and improved transparency when transacting with the port authority”.

It has replaced all manual capturing processes.

“One of the major benefits is that customers are able to process and track their online orders seamlessly in real time,” said Mabasa.

He has encouraged port users to go onto the OTC website and watch the demonstrations to refresh their knowledge of the system and to find out more about its capabilities.

TNPA’s OTC clicks the right buttons

The recent relaunch of Alitalia’s Johannesburg-Rome service has already generated cargo demand, according to South African cargo GSA, ATC Aviation.

Deputy director Africa, Stuart Tonkin, told FTW that perishables, crocodile skins and automotive equipment were among the product requests.

He estimated that cargo capacity would be somewhere between 8 to 10 tonnes.

The airline will operate an Airbus A330-200 on the route, f lying four times a week with the possibility of increasing the frequency, depending on demand.– Nicole Jacobs

Alitalia generates cargo interest

MBABANE – When the country name of Swaziland was changed by King Mswati III to Eswatini at his 50th birthday celebration last week, the business community was taken by surprise.

“No one was consulted. The cost in new stationery alone will be significant,” said Sandile Nxumalo, a purchasing agent for a Manzini-based outlet of the Pick n Pay chain.

How much time businesses have to make changes is one of many unanswered questions. Will major companies like Standard Bank Swaziland, Swaziland Railway and Swaziland Breweries be legally required to change their names?

Logistics companies contacted by FTW fear confusion as shippers adjust, and they are concerned about delivery delays. However, mix-ups have been common – even with the present name that has been in use since the 1900s, when the “e” was dropped from “Swazieland.” For instance, last week FTW correspondent James Hall received a magazine in the post addressed to Mazizini, Zanzibar. Hall lives in Manzini, Swaziland, 3776 km away.

“I’m tired of Swaziland being confused for Switzerland,” King Mswati said as one reason for the change that instantly made the world’s maps obsolete.– James Hall

Swaziland name-change a costly exercise

All PortsOnline users have migrated to OTC, which is used to submit documentation online.

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As container shipping lines look to follow the Maersk example

and team up with technology companies to develop a blockchain platform, analysts have warned that not all stakeholders are looking at deploying the same blockchain solution and platforms.

This can pose a challenge if stakeholders are expected to trade via a common platform or solution, according to Bloomberg Intelligence analyst, Rahul Kapoor.

Media reports last month pointed out that APL, in conjunction with Anheuser-Busch InBev, Accenture, a European

customs organisation and other companies had tested a blockchain-based platform.

IBM and Maersk are currently testing their blockchain platform which they describe as “a fully open platform whereby all players in the global supply chain can participate and extract value”.

Kapoor pointed out that blockchain would be the biggest innovation in the industry since containerisation. “It basically brings more transparency and efficiency. The container shipping lines are coming out of their shells and playing catch-up in technology,” he said.

And should these platforms succeed, the cost of moving goods

across the ocean could drop significantly as documentation that could take days would be available within minutes as users on the platform would have direct access to it.

However, the undertaking was as massive as the potential upheaval it would cause, he said. “The container shipping lines will need to persuade the ports and other organisations involved in cargo trading to adopt their systems.” Hundreds of related businesses around the world — including manufacturers, banks, insurers, brokers and port authorities — would have to work out a protocol that could integrate all the new systems onto one vast platform, he added.

The biggest innovation since containerisation?Against a background of

global economic growth, Mediterranean Shipping Company is upbeat about volumes for the year ahead, particularly in light of South Africa's upwardly revised economic outlook.

“Globally the economy has been growing – and we expect more of the same for 2018,” MSC’s southern African national commercial director, Glenn Delve, told FTW.

“Vessels are sailing at capacity on most major trade lanes, with just a few marginal routes like Asia outbound.”

And while volumes are looking up, the same is true of port productivity, according to Delve.

“Durban seems to have recovered from the severe storm damage in October last year, and with their new straddle carriers and gantries from Ngqura, productivity has improved significantly.

“There’s probably room for improvement but they are fairly close to where they should be.”

The biggest problem facing both Durban and Cape Town has been the weather, according to Delve. And while Cape Town shippers have become accustomed to the challenges presented by the ‘Cape Doctor’, Durban has been significantly affected by strong winds.

“This may have resulted in one or two vessels having to bypass Cape Town, however we have always found a solution to have a sailing in that week.”

For the year ahead Delve doesn’t see much change to the line’s current service offering on its major trade lanes – Asia, Europe, Middle East and US. “Our services are linked to customer demand. If there’s a spike in volumes we’ll bring on bigger vessels.” – Joy Orlek

Volumes on the rise – and productivity improving

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Swedish manufacturer Hammar Maskin – a global supplier of sidelifters under the brand name HAMMAR – has launched its latest heavy duty sideloader, the HAMMAR 110.

“This latest model has three new features – a double-action support leg, a significantly lower tare weight and a newly designed crane,” said a Hammar Maskin spokesperson.

He explained that the double-action support leg

featured two modes. “The stepover mode is based on the HAMMAR 155, where the leg extends outwards of 3.2 metres in a ‘step over’ motion, which is often placed on the opposite side of a chassis or wagon. This gives very high stability and fast, safe and easy transferring from or to a chassis or wagon.”

The patented sledgeleg mode is when the leg is folded, giving a shorter reach of 2.0m and is ideal when space is limited. “As the leg doesn’t

need to unfold and because of a simplified design using a single cylinder, it’s also very fast. In fact, twice as fast compared to the stepover mode,” he said.

Using the latest technology, the tare weight of the HAMMAR 110 – with three axles and standard equipment – is as low as 8.3 tonnes. “This means a significantly higher payload, less tyre wear and less fuel consumption as a bonus,” the spokesperson said, pointing out that it had a safe

work load of 36 tonnes and had been tested up to 45 tonnes.

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The new Hammar 110 sideloader.


The past 18 months have seen a dramatic spike in prices for shipping containers – up by more than 140% compared to the end of 2016, according to Speedspace director Barron Charsley.

It’s a growing trend around the world, with prices of new and used containers rising. And with the recovery in seaborne trade in the past year – and predictions of further growth and recovery – prices are expected to remain high.

According to Reuters, the tight market for standardised boxes is a result of carriers cutting overcapacity, but also points to a recovery in global trading after years of lacklustre growth.

Charsley said locally the increased price had resulted in a reduced appetite from end-user customers to purchase containers.

“As a result of this, Speedspace has seen a

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The shipping industry is entering a hyper-phase of problem solving,

technological innovation and product differentiation – but which technologies will prove game-changing is still an open question.

That was the consensus of a group of industry experts who examined container shipping’s new world order during a recent webinar hosted by the Journal of Commerce’s Mark Szakonyi and Bill Mongelluzzo.

“In short, the industry is at a turning point, moving away from the bricks-and-mortar issues that have consumed it over the past 20 years and moving toward

a period when the race to use technology to reduce costs, open new revenue opportunities, and become as efficient as possible will only intensify,” said Szakonyi.

All agreed that Donald Trump’s administration and its focus on protectionism lingered on the outskirts of conversations in industry as a major concern.

“Trade wars are not good for anyone,” said Szakonyi, adding that concern over the tariff advances being made by

Trump’s administration was increasing.

It’s a sentiment shared by many across the industry. BIMCO’s chief shipping analyst Peter Sand commented: “Free trade

provides prosperity and peace. It’s a fundamental principle to cherish and safeguard. All trade-restrictive measures are in principle bad for shipping.

Open economies are all better off from trading, as they make use of their resources in the most

optimal way. The result of a trade war is more expensive goods of lower quality and little variety. This goes for all products and commodities.”

He said overall more trade-restrictive measures were being introduced. Some more high-profile than others.

“This is a worrying trend that limits demand for shipping globally. Even worse for shipping could be short-sighted political positions that may have lasting consequences for everyone involved in global industries like shipping if a largescale trade war emerges,” he said.

Tariffs may be great to use as negotiation strategies, but trade wars will be harmful to container shipping across the board.

Shipping industry ‘at a crossroads’

Container rentals on the up

Trade wars will be harmful to container shipping across the board.– Mark Szakonyi

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significant increase in demand for rental containers both within South Africa, in our international markets including Zambia, Botswana, Tanzania, as well as from clients utilising our SOCs for both import and export cargo (mostly to and from Asia),” he said. “This increased rental demand, coupled with limited supply

of expensive pre-owned containers, has seen Speedspace making significant investments in brand new 20-foot containers. These have been dedicated to the rental fleet to ensure we are able to supply our clients with premium quality containers for long- or short-term, domestic or cross-border leasing.”– Liesl Venter

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Thanks to robust trade growth over the past few months,

independent maritime research consultancy Drewry has revised its container growth forecast from 3.6% to 4.3% – with South Asia and Africa identified as the fastest growth markets.

According to Phillip Damas, director of Drewry Supply Chain Advisors, the demand outlook is positive even though supply is expected to grow at a faster rate.

“Last year we saw about 6% growth in worldwide port throughput and we believe this robust growth will continue this year. The International Monetary Fund has also upgraded its GDP forecast for the

world,” he said during a recent webinar. “This year’s growth means an additional 9 million TEUs shipped globally which will require a fair amount of capacity.”

According to Damas 2018 is the second year in a row where growth was recorded in every region in the world. “It is for these reasons that we are very confident about the container market at present,” he said. “It is a period of relative optimism in global trade and the global economy.”

He said Africa and South

Asia were expected to grow at around 6% while for North America the growth forecast was the lowest at around 3%.

Damas said there had been a global rise in demand with regions such as Asia, Oceania and Latin America expected to grow above 4% at least.

Fleets were managing the supply-demand far better than before, he added.

“2018 could see a big bump for ship capacity due to expected deliveries of new container vessels based on new orders on the current order book,” he said. “From 2019 ship deliveries are

very low but we can already see deferrals from 2018 to 2019. It is possible that

carriers will try to smooth the schedule of deliveries to improve the supply and demand balance.”

He said the ongoing scrapping of vessels and delivery deferrals of new vessels were keeping net capacity growth at low levels.

The webinar took place before the latest trade hostility between China and the USA. It remains unknown at this stage what impact this will have on container shipping.

In a statement released earlier this month, Simon Heaney, senior manager

Trade war threat could dent positive container growth outlook

In the case of a trade war as much as 1% ofcontainer traffic could be exposed.– Simon Heaney

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of container research at Drewry, said a trade war was not yet inevitable, but given the lack of details, quantifying the risk to container shipping was very difficult.

“For example, much of the hi-tech goods considered liable to tariffs will be airfreighted rather than moving on the water. In a worst-case scenario we believe as much as 1% of the world’s loaded container traffic could be exposed, and were the situation to become real we would clearly have to revise our demand forecasts downwards.”

Despite the push for automation, only around 3% of global container terminals are either fully or semi-automated, according to Neil Davidson, a senior analyst for ports and terminals at Drewry Maritime Research.

“In theory, there is a large pool of terminals that could be considered for re-equipping with automation.”

But, said Davidson, automation was generally only suitable for large terminals given the nature of the equipment and the size of the investment required, making it very attractive in high-wage

economies which then significantly reduced the pool of terminals available.

“However, there are other motivations at work that also play a role such as prestige and being at the forefront of technological development – as well as technological learning that is resulting in increased interest in lower wage locations.”

He said the best potential for retrofitting automation was in Europe and North Asia.

“China and the Middle East - even though they are low-wage economies – have a strong appetite for technological development,” he said.

“North America, on the other hand, is challenging with only a medium appetite. Even though it is a high-wage economy that would be a push for automation it is counterbalanced by strong union opposition.”

To date, most of the 44 automated container terminals in operation were developed as new projects.

According to Davidson projects of this naure will decrease and in future there will be an increase in existing manual terminals being retrofitted – with automation as part of their major developments and overhauls.– Liesl Venter

Global terminals slow to automate

Exporters of palletised loads from South Africa will have to comply with new European legislation that shifts the responsibility for load security from the carrier to the client.

“Whereas previously the liability has been on the carrier, it will now be on the manufacturer. This is to ensure that no uncertified, accident-prone loads are dispatched in the first place,” according to organisers of the Interpack Processing and Packaging show in Dusseldorf.

The EUMOS (European Safe Logistics Association) regulations (standard 40509) are due to come into effect in the middle of this year.

New EU packaging regulations


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AGENDA08:00-09:00 Registration, refreshments and networking

09:00-09:15 Housekeeping Mr Harry van Huyssteen - Custodian Transport Forum

09:15-09:25 Welcome Ms. Nozipho Sithole - Chief ExecutiveTransnet Port Terminals

09:25-09:50 Opening address Hon Mr. Pravin GordhanMinister of DPE

10:00-10:20 Transnet Port Terminals: How far have we moved in 12 months?

Ms. Nozipho Sithole - Chief ExecutiveTransnet Port Terminals

10:20-10:40 A perspective on throughput productivity at South African Ports

Mr. Malte Kersten - Board ChairmanSouth African Association of Ship Operators & Agents (SAASOA)

10:40-11:00 Questions to the panelists

11:55-12:15

Projected Positive Growth in the Container & Automotive business: The impact of this on our ports & how should the transport sector react to this?

Mr. Willie Coetsee - Head of StrategyTransnet Port Terminals

12:15-12:35 Stimulating the KZN Economy Mr. Kayalethu Ngqaka - Chief Operating OfficerDube Tradeport Corporation

12:35-12:55 Why invest in KZN? Mr. Neville Matjie - Acting Chief Executive Officer - Trade & Investment KwaZulu-Natal

12:55-13:15 Questions to the panelists - followed by lunch

14:25-14:45 Eco-systems Centricity Ms. Sharla Chetty - Chief Information OfficerTransnet Port Terminals

14:45-15:05 Connected logistics and the 4th Industrial Revolution

Ms. Adele van Tonder - Lead Enterprise Architect - T-Systems SA (Pty) Ltd


16:10-16:30 Ethics in Transportation Ms. Thandi Sabelo - Executive Manager: Procurement - Transnet Port Terminals

16:30-16:50 Consultancies managing ethics in transportation: Global to local perspective

Mr Philip Hendricks - Industry Director Transport - Aurecon


17:10-17:20Closure and Lucky Draws (Winners must be present!)• Free tickets for two for a trip on the Blue Train• Free tickets for two on a MSC cruise

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The advent of autonomous vessels – expected as early as 2020 – will usher in a host of operational and regulatory challenges, according to Shepstone & Wylie partner, international transport, trade and energy department, Quintus van der Merwe.

“There is not an aspect of shipping that will not be affected,” he said. “Talking through the process of a ship loading at a port, sailing across the sea and arriving at the port of destination, you would have to consider who would issue a bill of lading when the cargo is loaded.”

He said that even the terms of the bill of lading would change as provisions relating to the Master of the ship and the crew would no longer apply – along with the reporting obligations of the Master on departure from the port.

“The same issues will aride on the vessel’s arrival at its port of destination where current reporting obligations and the potential for liability

for things like pollution or customs formalities generally fall on the Master.

“Various international conventions, which are incorporated into our domestic law in some form, like Safety of Life at Sea (Solas), watchkeeping obligations, collision regulations and the like, would need to be reviewed,”

he added. “Insurance of the vessel as well as cargo insurance would need to be reconsidered and no doubt new clauses would start appearing in policies.”

Divisional director at marine insurance broker Prestmarine, Susan Duvenage, told FTW that it was still very “early days” and that knowledge of the possible impact on

liabilities was not reliable.Van der Merwe also

pointed out that the potential for cybercrime, not only in hacking the vessel but affecting its steering and course, would demand some sort of regulation as it had massive ramifications.

“If there are no crew on board and it is truly an autonomous vessel, then

they may be somewhat more susceptible to stowaways or even the potential of terrorism,” he said.

While many in the industry believe autonomous shipping will likely reduce or mostly eliminate the issue of piracy along trade routes, Van der Merwe said that the potential for piracy could differ vastly on an unmanned vessel as opposed to a vessel where there was a crew to keep watch.

“There is no doubt that new clauses and potentially new laws may arise in respect of things like piracy.”

However, on a positive note, he said autonomous shipping would lead to a saving on the wage bill, it would eliminate claims arising due to human error and cut down on the large number of crew injury claims.

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Rolls Royce believes the first remote-controlled ocean-going vessel will make its entry around 2025 and quickly become commonplace by 2030.

Autonomous shipping will rewrite the legal rule book


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EXPERIENCED IN FREIGHT? LOOKING FOR A NEW JOB?

The South African government’s commitment to pushing ahead with the country’s renewable energy programme has cleared the path for foreign investment from Germany.

That was the message from Alexander Solomon, head of economy and energy at the German embassy in Pretoria, speaking at the International Supply Chain Day hosted by Röhlig-Grindrod Logistics in partnership with the Southern African-

German Chamber of Commerce and Industry (SAGCS) in Johannesburg last week.

“Minister of Energy Jeff Radebe’s signing of the 27 outstanding power purchase agreements,

as part of the SA government’s

Renewable Energy Independent Power Producers Procurement Programme (REIPPPP),

was seen as a massively

positive step by German investors as it ended two years of policy uncertainty,” he said.

Frank Aletter, deputy CEO of the SAGCS told FTW there was “a definite push” for cooperation and joint ventures in the renewables industry since sustainable energy solutions were of concern to both countries.

“In this arena, we’re seeing innovation in photovoltaic (PV) technologies taking place in both Germany and SA,” said Aletter.

The delay in signing the power purchase agreements had cost the

country in excess of R200 million in investments, according to the South African Renewable Energy Council (Sarec). Several logistics

companies – who had invested in services and equipment for the anticipated renewables boom – had also been hard hit as the projects to build the new f leet of wind and solar power

stations had not got off the ground, he said.

Karen Breytenbach, head of the government’s Independent Power Producers’ Office (IPPO), said the first of the power stations was expected to come online by 2020. – Adele Mackenzie

Germany mulls joint ventures in SA renewable energy sector

We’re seeing innovation in photovoltaic technologies taking place in both Germany and SA.– Frank Aletter

“LAST WEEK’S TOP STORIES

Asia to southern Africa container trade on the upAsia to southern Africa container trade rebounded in 2017 and has started 2018 with gusto.

Sars seizes drugs at OR TamboSouth African Revenue Service (Sars) Customs officials at OR Tambo International Airport (Ortia) last week confiscated 108kg of drugs.

Sars goes live with RCGSouth African Revenue Service (Sars) has gone live with its new electronic cargo reporting system which will be able to track the movement of cargo coming into and leaving the country.

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BUNKER WATCH (FUEL PRICES)

Figures supplied by Tel: +27 (0) 21 551 1888 | Email: [email protected]

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$435Last week$447

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NRCS rubs salt into the wound

Eskom keeping us in the dark?

has impacted on the work load and slowed things down further.”

NRCS spokesman Daniel Ramarumo told FTW that the NRCS was receiving more than 1300 applications per month with a high number of these a rework due to incomplete or wrong documentation submitted by applicants. “Even though the age analysis of applications is constantly monitored by the NRCS, occasionally some applications do exceed 120 days and when identified interventions are implemented to adhere to set timelines.”

He said the NRCS was currently implementing a risk-based approach to approvals which separated new applications from renewals and low risk from high risk. “Renewals and low-risk applications are processed through an expedited process using applicable checklists,” he said.

“The debate is on-going,” Stefan Sakoschek, regional director of the EU Chamber of Commerce and Industry in South Africa, told FTW. “There have been meetings with the EU delegation about the delays, and based on a recent meeting with NRCS, the backlog is building up again.”

One of the problems, according to Saunders, is the fact that everything is

accomplished manually in what should be a technically orientated environment. “They’ve been talking about a new IT platform to speed up LOA applications for a number of years and are no closer.”

Commenting on the issue of staff competence, Ramarumo said the organisation had recruited six trainee inspectors who were undergoing a two-year fast-tracked training programme. “The current total staff complement of evaluators including trainees is 13.”

Clifford Evans, Customs liaison manager at Berry

& Donaldson in Cape Town, told FTW that in Cape Town, the NRCS had been a permanent item on the agenda of The Port Liaison Forum (PLF), an initiative of the Cape

Chamber of Commerce and Industry, until March this year. “But we have removed it until further notice because despite our best efforts, there has been no progress or improvement at all.”

Without these LOAs, which provide proof of compliance with SA standards, Customs will not release the goods to importers.

PLF chairman Mike Walwyn agrees that there has been no improvement. “NRCS quotes a time period of 120 working days to process applications, and that often means that

the importer’s window of opportunity in terms of selling his product here has closed by the time the LOA is issued. Interestingly they did state some time ago that waiting time would be reduced to 120 calendar days, but that soon went back to working days.”

As things stand, there is no end in sight, according to Walwyn. “An interesting illustration is with tyres, where clearly this kind of control is absolutely necessary. The only problem is that NRCS doesn’t have the equipment to test the tyres properly, so samples have to be brought here, then sent to Europe for testing, and only after that can LOAs be issued.”

He said there was also some selective fast-tracking of certain applications, which meant that others were waiting longer. “It’s the kind of thing that lends itself to abuse.”

Kingfisher Freight Services managing director, Alwyn Nel, expressed his frustration at time wasted through lack of service.

“You can call them and either the phone just rings or the person who answers has no idea of the status of the application,” he said.

“A recent case took hours of time by phone, three trips to Pretoria and back plus staff costs with not even any assurance of completion,” he told FTW. “In the interim our principal is paying storage and handling costs at origin for something that is easy to complete.”

Ramarumo said the NRCS was continuing to meet with industry through their associations and individually.

From page 1

Renewals and low-risk applications are processed through an expedited process.– Daniel Ramarumo

“Reports emerging from analysts last week suggest that power parastatal, Eskom, has been less than upfront about coal supply challenges.

While Eskom spokesperson Khulu Phasiwe has reiterated that the power parastatal has plans in place to avoid load-shedding, energy analyst Chris Yelland said that the latest coal supply reports suggested that Eskom’s current coal supply problems were as serious as‚ if not worse than, those that existed in SA shortly before the load shedding of 2008.

He said coal stockpiles were low at the Arnot‚ Camden‚ Hendrina‚ Komati‚ Kriel‚ Majuba and Tutuka power stations.

Democratic Alliance Shadow Minister of Public

Enterprises, Natasha Mazzone, said that coal supply levels at several power stations in Mpumalanga were so dire that the utility’s energy division recommended that a coal supply emergency be declared.

This after the Gupta-owned Tegeta Exploration and Resources – which supplies seven Eskom coal-fired stations in Mpumalanga – was placed under business rescue.

Mazzone said the DA had written to the Eskom board requesting a declaratory statement on the state of the power utility’s current coal supply. “This information must be placed on public record to reassure markets and concerned South Africans alike,” she said.

The Arnot power station near Middelburg is one of seven coal-fired power stations facing a shortage of coal supplies.

JHB 011 043 1400 | 5 4 FRIDA rl 01 . F NRCS...

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