Partnership drives trade on Maputo corridor

The Maputo corridor is
an example of what the
private sector can achieve in
partnership with government when
there is a joint vision and drive,
says Mathews Phosa, chairman
of the Maputo Corridor Logistics
Initiative (MCLI).
Speaking at the annual general
meeting of the MCLI in Maputo
in September, Phosa said “It
was Ronald Reagan, the former
American President, who said,
‘Government’s view of the
economy could be summed up in a
few short phrases: If it moves, tax
it. If it keeps moving, regulate it.
And if it stops moving,
subsidise it.’
“He could well have been talking
about the logistics supply chain!
“However, what that famous
father of Reaganomics failed to add
was that if it keeps moving despite
the taxes and the regulations, the
private sector has seen the gap and
taken charge of the economy.”
This is largely the case with the
Maputo Corridor where the private
sector has taken the initiative and
built the infrastructure, got hold of
whatever moves and has pulled in
those doing the taxing and those
making the regulations, and has
never looked back, he said.
“On both sides of the border,
MCLI has been given significant
government support over the
years,” added Antonio Matos, the
Mozambican chairman of MCLI.
“The departments of transport
of both Mozambique and South
Africa have been very much part of
the active stakeholder participation
over the years and we are gratified
by the strong support given by
these departments and particularly
of the South African Department of
Transport which has been a funding
partner since 2006,” he said.
“The significant investment
of $225 million in Maputo Port
infrastructure over recent years
has brought a level of confidence
to this logistics corridor, and has
ensured consistent growth for the
region,” said Phosa.
“It has, however, also brought
with it its own challenges in
keeping service levels apace
with demand. The benefits of
the flexibility in negotiating
service levels with this privately
concessioned port have helped to
mitigate these challenges to some
extent, and MCLI continues to
work with all our stakeholders
to ensure that this port remains a
competitive option for its users.”
Challenges remain, however,
particularly with delays at
the border.
MCLI, in close partnership
with Alfandegas, (Mozambican
customs) began a project, funded
by the World Bank’s Sub Saharan
Africa Transport Programme,
focusing specifically on transit
customs issues. “We will also
examine existing transit customs
legislation policy and procedures
with a view to forming a departure
point for providing input into the
changes that need to be made to
facilitate the necessary growth
of this aspect of the corridor,”
said Matos.
“This work will include a
manual that will smooth the way
for users and provide the necessary
foundation for transit volumes
to grow.
“Transit trade is the future of this
corridor,” said Matos.
“We are currently running at half
our potential capacity and half our
competitiveness both on road and
on rail and this is a situation that
could potentially marginalise
this corridor.