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Delays at Beira increase already high logistics costs

08 Nov 2022 - by -
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Bureaucracy and red tape continue to be challenging for operators in Mozambique.Several freight forwarders told Freight News that the number of documents and the paperwork required for moving cargo often delayed transport for days at a time. This was not only a problem in Mozambique but across southern Africa as well.“Loading a truck can easily take a week as you wait for the correct documents,” said a forwarder. “On arrival at the destination, it can take another week before you can off load – and then you wait yet another week before you can load the backload and return. “Then, of course, there is the red tape at every border post, on each side of it, because all of the processes and documentation are duplicated on each side.”What makes matters worse is that much of the paperwork is still handled manually. “This also leaves the door open to untoward practices by certain people, plus it is more susceptible to human error.”All of this adds to the cost of logistics, which, on a corridor like Beira, is already high. “Some of these practices are shortsighted as they result in the corridor being uncompetitive on a global scale, and that is really where we are competing,” said another source. On the bright side, forwarders in Beira in particular are working together increasingly to correct the situation and improve the ease of doing business. Talks with government officials are ongoing.“One common phrase I keep hearing is that whatever we all do individually – be it as a group of forwarders, transporters, warehouse owners or shippers – it is in our best interests to benefit Beira as it makes the place and the corridor competitive,” said the source. “Yes, we compete against each other, but we are also seeing the big picture. We are competing against the region and, ultimately, the world.”Another forwarder said if Beira and its service providers got it right, and the government helped the situation by making policy and legislation easy to use through the reduction of bureaucratic red tape, the corridor would be primed for big things.“While there are still some serious challenges here, a lot is also changing. There is ongoing investment in the logistics sector, and while the changes may appear small to the outside world, these are incremental changes. “It all adds up to an environment that is growing and pushing its way onto the main stage. There is a positivity about Beira despite the challenges.”

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