Action plan targets trade growth with Russia

Ostrich meat high on the agenda RAY SMUTS THE DEPARTMENT of Trade and Industry has created a trade action plan designed to boost trade with Russia, currently ranked a lowly 46th among countries to which South Africa exports. Total trade between the two countries amounted to less than R1 billion last year. While Russia currently maintains a ban on imports of South African meat, due in the main to concerns over foot and mouth disease - a contagious viral infection among cattle - and the need for strong phyto-sanitary requirements, this country is keen to include on its export list ostrich meat, along with wine, dried, fresh and canned fruit and automotive components. The majority of South African exports to Russia currently comprise motor engines (18.8%), machinery and mechanical equipment (14%), grapes (13.8%), metal plate and steel (10%), pears (6.8%) and peaches (3.4%). Although South Africa recently lifted the ban on ostrich exports which it had voluntarily imposed at the outbreak of a strain of Avian flu among the Eastern and Western Cape ostrich population, the country has yet to learn when the European Union, its biggest trading partner with 90% of ostrich meat exported annually, will follow suit. Anton Kruger, manager of the Ostrich Business Chamber at Oudtshoorn, told FTW last week that the ostrich industry had not yet embarked on formal market research regarding Russia, a country that imports six million tons of kangaroo meat from Australia a year. “Sanitary and phyto-sanitary requirements need to be agreed upon on government levels as a pre-requisite for meat exports. Certain protocols and processes need to be followed and thus it can take quite a long time,” says Kruger. Also under the microscope will be to find ways and means of obtaining maximum value, given that South Africa and Russia jointly mine most of the world’s platinum. (South Africa supplies 50% of production and Russia 35%). Even though Russia’s 145 million people enjoy a higher disposable income, pointing to huge possibilities for tourism and consequent trade benefits for South Africa, the number of Russians visiting here has, according to Russian statistics, declined from 2 000 in 2001 to 122 last year. South African figures differ markedly however with 8 549 Russian tourists in 2002, declining to 7 473 last year. There are 37 countries with tourist agencies in Moscow but South Africa does not count among them. New bosses take the wheel at Transnet ED RICHARDSON TRANSNET HAS announced seven new appointments at senior management level to direct key operational departments in a move aimed at stepping up the implementation of its turnaround strategy. More senior appointments will be made in due course, Transnet CEO Maria Ramos said, with respected specialists also expected to join Transnet’s legal and compliance department and the CFO’s department as part of the group’s bid to improve vigilance in risk management. Karl Socikwa takes up a new post as the head of restructuring within Transnet’s strategy and transformation department. Socikwa will continue in his role as CEO of Transtel, Transnet’s telecoms division, while leading the disposal of all second network operator (SNO) elements of Transtel with the help of a chief operating officer, a newly created job. At head office, his new role will be to head up the disposal of non-core assets which forms part of efforts to restructure and strengthen the balance sheet. Moira Moses, who serves on numerous boards of leading South African companies, is stepping down from the board of Transnet and its associates to take the newly created job of head of business reengineering. The job, part of the group chief operating officer (COO)’s department, is key to the process of unlocking efficiencies within the core business units. Thagaran Govender has been promoted to the restructured post of heading up the group’s ICT department as chief information officer. This is part of the COO’s department. Karen van Vuuren joins Transnet to head its supply chain management. Key among her responsibilities will be the review of the company’s procurement policy. Bernard Smith has been appointed to assist Transnet ramp up its capital expenditure programme. A key part of this newly created role is to create and deepen project management skills at Transnet. Richard Vallihu takes over as CEO of Transwerk, the heavy rail maintenance division. The last in the line-up is Virginia Dunjwa, currently with Spoornet, who joins Transnet’s legal and compliance department to head up risk management.