Export growth will drive down freight costs

Maersk Mozambique is
actively promoting trade
along the main Mozambican
corridors in order to drive down
logistics costs in the region
and stimulate local economic
development.
“Imports will drive exports
once we have cost-efficient
inland corridors,” says Maersk
Mozambique managing director
Christopher Crookall.
Transit cargo costs are
relatively high because imports
are “insufficient to balance the
transit export flows on the Maputo
corridor. Ideally, the containers
should be full both ways, which
would make it economical to run
block trains and other services,” he
says. Maersk has offices in all the
neighbouring countries served by
the Mozambican ports.
Maersk is among those
companies that would welcome
consistency in the application of
Mozambican customs regulations.
According to Crookall and a
number of others interviewed
by FTW, there are different
interpretations of customs
regulations on the Maputo, Beira
and Nacala corridors.
Because Beira has always been
a port of entry for neighbouring
countries, it has the process in place
to ensure the smooth flow of goods.
Maputo, on the other hand, has only
emerged as a transit hub relatively
recently after almost shutting down
during the civil war.
Mozambican Customs has
responded with the development
of an electronic system designed
to speed up the movement of cargo
in the country but to date there is
little recognition by Customs of
the impediments to import transit
business through Maputo.
Having clarity and certainty will
help build business through the
Mozambican ports, says Crookall.
“All we need to be able to do is
to say to our customers that we are
offering a service which takes X
number of days, has Y number of
steps, and costs Z.”
Trade volumes are being affected
by the lack of certainty about transit
times and costs caused by red tape,
he says.
“The infrastructure is here, the
shipping lines are here and the
logistics companies are here. All
we need is a more business-friendly
approach by the authorities. We
have not hit the tipping point that
will see sustained growth yet
because we are unable to build
critical mass given the bureaucratic
constraints which make import
transit business through Maputo
almost impossible to sell,” he says.
Volumes are however growing,
and Maersk in partnership with
Safmarine has introduced the
M-Express/Safari 3 named day
weekly service between Maputo
and Tanjung Pelepas in Malaysia.
The eastbound service is direct,
while the vessel calls on Port
Louis (Mauritius), Port Reunion
(Reunion), and Toamasina
(Madagascar) on the westbound
route.
“Having a fixed berth window in
the port of Maputo has definitely
benefited both our customers and
ourselves,” he says.
At present a 1 700 TEU vessel is
being used, but with the dredging
of the entrance channel, it will be
possible to introduce larger vessels
– providing the volumes justify
the costs. The key component of
volume growth is inbound transit
business through Maputo to the
southern African hinterland.