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.