Freight & Trading Weekly Feature Angola

NOVEMBER 2009 FREIGHT & TRADING WEEKLY

ANGOLA SPECIAL feature

Angola

Challenges aplenty ... but opportunity beckons

At the heart of Africa’s leading logistics network • Extensive equipment and facilities • More than 700 permanent staff • Activities Air & Sea freight forwarding Shipping agency Transportation Packing & removals Base management Husbandry

LUANDA

LOBITO

SOYO

CABINDA

SDV AMI Angola Estrada de Cacuaco N° 288 – C.P. 2163 – Luanda Tel.: + (244) 912 300 646

SDV AMI Angola Avenida de Mocambique N° 41-47 – C.P. 143 169 – Lobito Tel.: + (244) 926 741 572

SDV AMI Angola Base Kwanda – Soyo Tel.: + (244) 917 650 641

SDV AMI Angola 11 Rua de Macau 2ndo andar Predio Meng – Cabinda Tel.: + (244) 917 654 012

e-mail: sdv.angola@bollore.com FTW1794SD FTW1794SD

www.bollore-africa-logistics.com

NOVEMBER 2009 | 1

Editor Joy Orlek Consulting Editor Alan Peat Contributors Liesl Venter Advertising Carmel Levinrad (Manager) Yolande Langenhoven Jodi Haigh Managing Editor David Marsh

Correspondents

Durban Terry Hutson Tel: (031) 466 1683 Cape Town Ray Smuts Tel: (021) 434 1636

Carrie Curzon

Tel: (021) 674 6935 Port Elizabeth Ed Richardson Tel: (041) 582 3750 Swaziland James Hall jhall@realnet.co.sz

Advertising

Co-ordinators Layout & design Circulation Printed by

Angola’s attraction extends beyond the transport opportunities offered by the oil and gas industry. Its population of R13m presents a potent consumer market, which shippers are readily exploiting.

FTW takes a closer look …

Economy Page 2 Despite appalling infrastructure, opportunity beckons

Tracie Barnett, Paula Snell Dirk Voorneveld ftwsubs@nowmedia.co.za JUKA Printing (Pty) Ltd

Publisher: NOW MEDIA

Now Media Centre 32 Fricker Road, Illovo Boulevard, Illovo, Johannesburg.

PO Box 55251, Northlands, 2116, South Africa.

Page 16 New service provides full Africa coverage from the East

Logistics and transport

RSA – R465.00 (full price) R800.00 (Africa neighbouring) R1065.00 (foreign).

Phone + 27 11 327 4062 Fax + 27 11 327 4094 E-mail carmell@nowmedia.co.za Web www.cargoinfo.co.za

Page 12 Knowing the terrain provides the edge

Keeping abreast of changing rules is an essential part of the mix

Annual subscriptions

Page 15 Major deal ‘cemented’ on Cape TownSoyo route

Seafreight

Page 3 Container dry port to open near Luanda

Page 13 Transporters must factor in infrastructure-related delays ‘A competent agent is key in this difficult market’

Page 6 Ship’s agent provides range of critical data for its customers

Page 15 ‘If the roads are really bad – that’s our territory’ Page 4 ‘Regulated agent’ status will further streamline cargo movement

Airfreight Page 7 Airline registers phenomenal growth in volumes

Cover photo: Natalia Thomson.

Page 10 Joint venture provides regular service into Angola

Reconstruction creates major opportunities

Angolan oil industry benefits from new seafreight service

Currency restrictions add new challenges

Page 14 Namibia gains traction as entry point for Angolan goods

Page 7 Speedy customs clearance provides the edge

Page 16 Global logistics operator specialises in oil and gas industry

UNIVERSAL AFRICA LINES (SOUTH AFRICA)

e c i ff O a l o New Ang

UAL-Rodach’s first berthing in

Cape Town on Friday 10th July 2009 Contact UAL-SA general Agent Seaclad Maritime.

Monique Gubler – General Manager – UAL-Angola For bookings or further information.

Tel Angola + 244 933 32 61 51 monique@ual-sa.co.za Sham Naidoo: mkt@seaclad.co.za +27 82 783 4206 Angelique Augistine: expjhb@seaclad.co.za +27 11 442 3777 UAL now runs a fortnightly service from Durban, Cape Town and Walvis Bay into UAL (SA) (PTY) Ltd, 8th Floor, 71 Loop Street, Lobito, Luanda (Sonils), Soyo, Porte Noire, Port Gentile, Onne (PHC) and Malabo.

Cape Town, 8001 Tel: +27 21 422 3210; Fax: +27 21 422 3212 (Cape Town) Head Office.

(Moving Breakbulk, Containers, Heavy Lifts, Projects and General Cargo) Tel: + 27 11 880 2904 (Johannesburg).

UAL is now sailing from South Africa into West Africa.

FTW4569

2 | NOVEMBER 2009

Despite appalling infrastructure, opportunity beckons

World’s highest industrial growth rate is one of the markers

By James Hall

W

ith transporters into Angola reporting difficult seaport conditions, hair-raising road use tales, and frustration at sluggish customs procedures, the question “Why bother?” can be answered with a simple reply: “It’s the economy.”

True, seven years after the country’s devastating civil war concluded in 1992 the economy is moving from a very low point, but Angola’s real growth rate of 13.2% in 2008, down from an amazing 19.6% in 2006 because of a global economic slump that dampened demand for Angolan oil, is the fourth highest in the world.

Growth in industrial production last year was 14.3%, ranking it number one. That’s right, Angola had the world’s highest industrial growth rate, and transporters know it. They are the ones who ship industrial inputs up from SA or arrange sea transport from the EU and US. Much of what is moved is for the oil sector, which comprises 85% of industrial activity. Angola is the world’s 17th largest oil producer, pumping out 1.91 million barrels of oil a day of its estimated reserves of nine billion barrels. Shipments overseas account for a lopsided export/import profile. Angola’s exports were $67 billion last year, up from $44 billion in 2007, while imports stood at $17 billion.

With the country’s 2764-km long railway system still inadequate from decades of conflict, the choice for shippers is road, air and sea. Angola may have 211 “airports,” but only 30 have paved runways. 51 500 km of roads criss-cross a country that is 12.3m square km in size, but as road freight haulers know only 5 350 km

is tarred, and the tarring can often be problematic. Rains and flooding take their toll on roads, making muddy quagmires of the untarred majority and submerging the rest, particularly in the interior plateau areas.

“We transport a lot of foodstuffs into Angola,” says Moses Abbosey, whose firm Royal Gold Shipping Agency felt the country was an attractive destination and started service there two years ago. And he’s not alone in following the allure of an obviously buoyant economy, shipping perishables and other foods to not only oil installations but also shops. Surprisingly for a country with an intense November to April rainy season, less than 3% of land is arable, and agriculture accounts for only 9.2% of GDP. Half of the country’s food has to be imported.

No wonder the one bright spot for transporters dealing with Angolan customs is that pre-clearance of perishable products is allowed. “For other goods,” explains Paul Cunliffe of 4PL.COM Logistics Cape, “a four to five day process at the border should be normal. If a situation arises with clearance documents, it can be four to five weeks. But longer can happen.”

‘Angola is the world’s 17th largest oil producer, pumping out 1.91 million barrels of oil a day.’

The language (Portuguese of course is spoken) can be a challenge. “We recently moved a load of synthetic juice powder. We have a guy at the border who translates all our documents. Angolan customs saw ‘orange’ and ‘raspberry’ and wanted certification for fruits. They wouldn’t

Rains and flooding take their toll on roads, making muddy quagmires of the untarred majority.

accept the argument that the product was synthetic. The truck stood at the border for two months until it was resolved,” Cunliffe recalls.

What would help move road freight along is a common clearing ground at its main border post used by inbound truck traffic from SA. One road freight hauler reports: “What happens now is the trucks go to a holding area 30 km from the border. There are no stores, no facilities there. We have an agent who goes to our trucks on a daily basis, gives the drivers news and gets updates, takes shopping lists and checks visas.”

Acquiring visas can be a challenge in itself, and complications arise if a truck is stuck at the border. Visas are single entry and expire in 30 days. If a truck is held up for more than a month it may also be the driver who is stranded.

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“These fees get passed onto the customer who can’t understand why it is so expensive to ship to Angola,” said the road freight operator.

So, why bother? The attraction of Angola is more than transport opportunities offered by the oil and gas industry. Angola’s population of nearly 13 million is also emerging from a time of want, and represents a potent consumer market. Already much of Angolans’ food needs must come from abroad, and transporters report growing volumes in consumer goods.

They also report an improving road infrastructure, efforts to address port congestion, and other signs that government understands that postwar reconstruction and widespread prosperity to match the fortunes of the oil sector cannot be achieved without literally paving the way for the transport industry.

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NOVEMBER 2009 | 3

SDV to open container dry port near Luanda Helping to streamline transport operations

By Joy Orlek

W

ithin the next three months SDV will open a new container dry port 5km from Luanda – one of a range of initiatives by the logistics major to streamline transport operations in this fast-growing market.

“We see it as a win-win solution for shipping lines, importers and logistics companies involved in Angola,” says SDV’s Johannesburgbased regional managing director Philippe Deneve.

Dedicated to full import containers, the 150 000 m2 facility is expected to go a long way in helping to ease port congestion in Luanda.

“The only other dry port is 40km from the port, so we’re not in competition but rather offering a totally new alternative.”

SDV has been involved in Angola for more than 50 years, but the past three years have been a period of huge growth, with the company expanding from a staff of 250 to more than 700.

“We have strong teams in Luanda, Lobito, Soyo and Cabinda and are looking to open an office in Namibe,” says Deneve.

General cargo and logistics in the oil industry are the two focus markets, with project cargo one of the company’s specialist competencies in Angola.

“In Soyo, for example, we are in charge of the logistics of the LNG project for the construction of a gas factory that will be the biggest in Africa.”

The country is clearly alive with possibilities, but it’s not without challenges, chief among these the

infrastructure shortfalls for sea and road transport as a result of exceptional growth over the past few years.

“Luanda is always congested,” says Deneve. “And there are big traffic jams all day every day in Luanda. While in other countries we can make four or five trips with a truck per day, in Luanda it’s one trip and when we make two we are very happy.”

This obviously adds to the transport costs and the challenge is to find solutions to making more trucks available.

“Putting more trucks on the road merely exacerbates the problem so streamlining activities is the way to go and one of these, for example, is to transport as many containers as possible at night from the container terminal to final destinations.”

A few months ago SDV did a trial run using Lobito instead of Luanda, but after a few weeks Lobito was just as congested, says Deneve.

And while a new port close to Luanda is on the planning boards, this will take some time because it’s a large investment.

Looking to the future, SDV is interested in becoming a partner with the port authority if they decide to invite private sector buy-in. “This could be on a BOT (build, operate and transfer) basis, with SDV interested in operating a new port jointly with local partners.

But with moves afoot that will ultimately improve productivity in the port and on the roads, Deneve is bullish about the future.

“Everything is improving all the time.

“The new dry port will help to improve productivity at Luanda by

Philippe Deneve … ‘Looking to the future, SDV will be interested in becoming a partner with the port authority if they decide to invite private sector buy-in.’

providing a dedicated new facility outside the port and making more space available for working inside the port.

“The road infrastructure too is better now than it was two years ago and will continue to improve as huge amounts are being invested by the government.

“If traffic jams are reduced it will be easier for us to improve our productivity and to transport four or five containers a day instead of one – and that will impact on transport costs which are currently far too high.”

It’s a country with enormous potential, says Deneve.

“Today it has a higher level of oil production than Nigeria and could be the first producer of oil in Africa – and there are also many opportunities in the mining business with diamonds, coal, minerals and the like.

“In addition, there’s been renewed interest in agriculture in the Lubango region which was a big agricultural producer many years ago.”

As infrastructure shortfalls are addressed, the country’s potential will be fully realised – and companies like SDV will be well positioned to be part of the development of this growth market.

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Johannesburg Contact: Jillian Appleby Tel: +27 11 616 0595 Fax: +27 11 616 0596 E-Mail: seascape@iafrica.com

Walvis Bay Contact: Piet Reichert Tel: +264 64 205859 Fax: +264 64 20651 E-Mail: expserv@iafrica.co

Durban Contact: Richard Fortune Tel: +27 21 440 5400 • Fax: +27 21 419 8952 Email: richardf@meihuizen.co.za

4 | NOVEMBER 2009

‘Regulated agent’ status will further streamline cargo movement Security intervention paramount for Angola-bound cargo

By James Hall

By James Hall

E

nsuring safe and swift delivery of cargo requires attention to security concerns, and shipping to Angola is no exception.

“Security and safety in the freight industry has always been a major problem. However, most of our cargo to Angola gets hand-checked and inspected by SGS, Cotecna or Bureau Veritas before loading.

Numerous photos are taken and containers get sealed by the relevant inspection company,” said Hannes Rust, managing director of Sandtonbased Chavda Freight.

“Most of our vehicles are fitted with satellite tracking and we’re also in direct and constant contact with our drivers. We have contact people at all the border posts as well as the major cities along the route. All vehicles stop at these points for checking cargo as well as

Road transport dominates Angola route.

documentation. We also make sure that when possible vehicles travel in convoys for added safety and security,” Rust said.

For ten years, the Chavda Group has shipped to and from Angola, moving mainly mining and construction equipment but also cargo ranging from stationery, perishables and computers to big

vehicles and earthmoving equipment.

“We are also in the process of becoming a regulated agent as stipulated in Part 108 of the Civil Aviation Authority act which will result in the seamless movement of our cargo to the airline. If everything goes according to plan we should be regulated by the end of October this year,” Rust said.

Angola’s reconstruction creates major opportunities Road transport dominates the Angola route, due in part to the need to circumvent port congestion, says Chavda Freight managing director Hannes Rust.

“We have built up a valuable relationship with some contractors we’ve used over and over again, ensuring our clients get the best service,” said Rust. But the foundation for a company fleet was laid with the recent purchase of an eight-ton truck to handle

FTW1793SD

demand for road freight express and consolidation loads to Angola.

“This vehicle together with a few other smaller vehicles will be carrying consolidation cargo and we’ll have one vehicle leaving Johannesburg for Luanda every week,” said Rust.

Despite a recent drop in business sector activity that Rust believes is caused by a shortage of foreign currency in Angola that retards payments,

Currency restrictions add new challenges

and the introduction of new documents required for bank transfers, a country in the process of rebuilding offers ample opportunities.

“The government has determined plans to build roads, bridges, shops and hotels. This together with Angola’s large number of natural resources provides good prospects for growth and consequently for investment and trade,” Rust said.

Following the conclusion of Angola’s protracted civil war, the reconstruction of the national economy commenced, with transport firms leading the way by bringing necessary industrial inputs and consumer goods up from SA. These hauliers learned the challenges of shipping in the country, and found ways to adapt.

“We’ve been shipping to Angola for six years, since the end of the war. We ship anything and everything – bulk, breakbulk, reefers, all sort of products,” said Jeff Smit, the owner of Cross Africa.

Located in Spartan (Kempton Park), Cross Africa has parking facilities for trucks on site, where goods are loaded en route to port for the sea voyage to Angola. “We have a lot of subcontractors working from our premises, running our loads into southern Africa,” Smit said.

“We use several lines, including Safmarine, MSC and NDSL. Luanda port is pretty congested, so we use other ports,” he noted.

Even in the best of circumstances, the movement of cargo from ports can be very time consuming – from platform inspections onward.

This year’s new challenge is restrictions placed on currency movement.

“The economy has slowed down a bit because of the Angolan Reserve Bank restrictions on money moving out. This started a few months ago.

Obviously we don’t extend credit to Angola. We need upfront payments, and this has affected business somewhat,” Smit said.

But with the Angolan market showing such promise, ways will be found to deal with this any other challenges that may arise, he said.

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6 | NOVEMBER 2008

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Ship’s agent provides range of critical data

By James Hall

A

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Personalised • Customer focused • Reliable

ccurate “on the ground” news of developments in the Angolan economy can assist customers to make business decisions by arming them with the “where and when” data needed for shipping.

The sea freight shipping agent African Steamship Angola (www.hullblyth.com) ensures that its customers know such critical data as the wait times for ships in port, industrial activity and economic indicators.

Information about Angola can be spotty, and exporters into the country value timely and accurate guidance, says Edgar Espinosa, managing director of African Steamship Angola, a member of the Hull Blyth Group.

“African Steamship appreciates the distinction between the different services required by our various principals, which is why the ship’s agency aspect of our business has been split into three: liner agency (container carriers), ro-ro (rolling cargo/vehicles, project cargo) and general cargo agency (bulk, product/chemicals),” said Espinosa.

African Steamship Angola is currently the agent for OACL (Ocean Africa Container Lines), which serves the ports of Luanda, Lobito and Namibe.

“In addition to OACL, we also serve other important entities based in South Africa,” said Espinosa. “As container carriers, we represent Hamburg Süd and Maruba. With respect to ro-ro freight, we are the Angolan agents for the Daewoo service, which is managed by the KTSL office in Durban. On the bulk side of the business, we serve Mainport Africa Shipping, also based in Durban.

“Along with our South African principals, we also represent a number of other carriers from all regions of the globe in the container, ro-ro, general cargo and product/chemical market,” he said.

To serve a country that has a far-flung ports systems one capital city headquarters isn’t enough, says Espinosa, which is why the company also has offices at the key ports and oil/gas terminals of Lobito, Namibe, Soyo, Malongo, Cabinda, Girassol, Kuito, Lombo and Palanca.

Meticulous preparation of paperwork prevents delays

By James Hall

Own offices: Tanzania, Kenya, Mozambique Specialists to Angola and other West African countries.

Global services provided with a reliable International Agency network.

Durban Richard Barry T +27 31 305 4788 F +27 31 307 2172

Johannesburg Gary Wagner T +27 11 450 1611 F +27 11 450 1972

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Shipping stories in Angola commonly echo the experience of trucks stalled at the border for weeks because of improper documentation, with any problem exacerbated by the language barrier. Zico Batista of Bull Intertrans in Zeerust says the only insurance against long delays is meticulous preparation of

paperwork from visas to customs clearances.

“Every month we go up.

Transport brokers hire us. We do full loads. Breakbulk can cause problems at (Angolan) customs.

If all the duties are not paid or documentation is not all there at customs upon entry you can have a two to three week delay, with one shipment holding up the others,” Batista said.

NOVEMBER 2009 | 7

SAA Cargo

registers phenomenal growth in volumes

By James Hall

O

ne barometer of Angola’s economic performance can be found in a rise in airfreight into the country. From consumer goods to essential components for industry, more time-intensive cargo is winging northward from Johannesburg.

For South African Airways airfreight division, SAA Cargo (SAAC), volumes into Angola are expected to be up by more than half this year compared to 2008.

“Business is on the rise at the moment due to the increase in demand for mining and perishable commodities in Angola,” said Dixon Nkomo, SAA Cargo’s sales & marketing: domestic and Africa.

SAAC’s air freighter service to Luanda departs OR Tambo International Airport three days a week, deploying two B737 300F freighters. Passenger service to Luanda is daily via a B747 400. The air freighters provide cargo capacity of 17 tons, but additional cargo space is available on the passenger planes – up to 12 tons depending on

Dixon Nkomo ... ‘Luanda is one of the markets we have prioritised.’

passenger load.

As in other markets, perishable products dominate airfreight cargo to Angola.

“Mining equipment and general cargo also move from South Africa. The

inbound cargo out of Angola is minimal at this stage,” said Nkomo.

He noted that with approximately 2000 tons per annum now being moved into Luanda by SAA Cargo, the inclusion of three additional freighters per week is set to improve this performance by at least 50%.

Of future plans for its Angola route, Nkomo said: “Luanda is one of the markets we have prioritised. We have seen phenomenal growth of economic activity in Angola that has resulted in demand for more capacity on this sector.

However this is not without challenges.

These challenges relate to infrastructure, including ground handling in Luanda.”

The carrier is currently in discussion with Luanda airport authorities to identify areas of cooperation.

“Areas of discussion include, but are not limited to, IT systems, operating standards and knowledge sharing.

There is huge potential for making this sector more lucrative as long as all necessary resources are put in place.

Our active participation will not only benefit SAAC but the entire SADC region,” Nkomo said.

Big potential for SA companies in rebuilding Angola

By James Hall The excitement of participating in Angola’s economic rebirth is known to many shippers who are key to supplying the means to that growth.

“There has been a tremendous amount of development in the Angolan infrastructure which is ongoing. It is practically a new economy that is largely based on abundant oil and natural gas reserves. There is great potential for South African companies in rebuilding this country,” said Shaun Wilken, exports manager for Cape Town-based First Food Distributors.

“Angola has vast natural resources, many not as effectively utilised as their oil and gas. We supply perishables, consumables and catering equipment to oil and gas installations, predominantly off-shore, that are serviced by on-shore support facilities,” Wilken said.

“First Foods consolidates loads using product from multiple manufacturers to meet the extensive needs of their clients,” he said.

First Foods Distributors is a branch of Caterplus, a division of Bidvest, and is seeking to expand its markets in Angola and further into central Africa.

Speedy customs clearance provides the edge

By James Hall Roadfreight shippers may lament the state of Angola’s road conditions and seafreight shippers may bewail the country’s port congestion, but for SA shippers sending cargo to that destination this is background noise that does not lessen their desire for quick delivery of their goods. Firms that have shown a knack of achieving speedy deliveries to Angola have

found customers gravitating their way.

“What helps us is we do customs clearance right in our Johannesburg office. All the documents that are needed are completed before the cargo is shipped out,” said Moses Abbosey, managing director of the clearing and forwarding firm Royal Gold Shipping Agency, located in the city’s Central Business District.

“When clients started coming to us to have cargo shipped to Angola,

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they knew we were capable of shipping any kind of cargo and we knew we could make an impact in that country. We are targeting that market, and believe we are the fastest in terms of clearing goods,” said Abbosey, whose firm moves cargo for individuals and corporations from perishables like fruits, vegetables and frozen food to consumer items and project cargo.

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Royal Gold Shipping using MACS and other lines, while road freight is handled by liaising with surface transporters. What happens at the border is crucial to swift delivery of goods.

“We have a network agent there who specialises in customs clearing. Our volumes to Angola now are such that we are opening an office there either at the end of this year or at the beginning of next year,” said Abbosey.

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10 | NOVEMBER 2009

Joint venture

provides regular service into Angola Angola Atlantic Line focuses on needs of oil industry

By James Hall

A

s Angola’s economy grows, there’s scope not only to bring in necessary industrial inputs and consumer goods but for exports as well.

Of his own company’s experience, Lars Greiner of Maritime Carrier Shipping in Cape Town said: “We were mainly focused on mines. Macs brings cargo from Northwest Europe to Southern Africa, using the ports of Walvis Bay round to Maputo. But it is very much a balanced trade, in both directions. Shipments north include ores and manufactured products.

“For us Angola is a very new area.

We’re very excited by what we see as an opportunity,” Greiner said.

Last month, the Macs-managed Gulf Africa Line (GAL), in operation for 11 years, began a joint venture with Angola South Line (ASL) providing a scheduled service from Texas and New Orleans to Walvis Bay, where cargo is transferred to the coaster feeder vessels of ASL for the

final leg to Angola.

“We were approached from the Angolan side to provide a service.

They told us of the need for an additional carrier, particularly with the Angolan oil market growing, and we worked on the idea for about six months,” said Greiner.

“It’s a good fit because there is a lot of synergy going on between us.

Both our companies are focused on customer service,” he noted.

The Macs and GAL ships are in the 25 000-35 000-metric tonne deadweight class, while the Anna vessels are in the 4 000-5 000-mt category.

While the GAL/ASL service, dubbed the Angola Atlantic Line, concentrates on the needs of the oil industry, Macs continues to ship into the country “a shopping basket of goods. We do breakbulk, bulk and containers,” said Greiner.

“It is a growing market. The country doesn’t seem to be badly affected by the worldwide economic climate. Angola certainly has quite a lot of potential,” he said.

Angolan oil industry benefits from new seafreight service

By James Hall Angola’s key industry now benefits from swifter importation of Texasmade machinery with the introduction of a new service, Angola Atlantic Line, which combines the routes of two seafreight companies. On the first leg of the journey, Gulf Africa Line (GAL) sets sail from Houston and docks at the Port of Walvis Bay where its shipments are transferred to Angola South Lines vessels.

“GAL is a US line registered in the US out of Houston and will offload in Namibia. We then take shipments up the coast to Angola,” said Mark Kilbride of Cape Town-based Meihuizen International, which acts as SA agents for Angola South Lines.

ASL is entirely owned by Angolan investors.

“GAL ships can’t dock in Luanda or the other (Angolan) ports because

of port depth issues – the vessels are too big. ASL is a feeder line, serving four locations in Angola,” said Kilbride.

ASL ports of call are Sonils Terminal in Luanda which is dedicated to oil company shipping, Kwanda Base (Soyo), and Cabinda/ Malongo. ASL also ships 6m GP and 12m GP containers and 6m and 12m reefers up from SA, as well as breakbulk and out of gauge cargo.

Primary SA shipments headed for Angola are project cargo used by the oil industry.

Items manufactured in Texas and shipped to Angolan oil fields will include wellheads, pipes, casings and machinery. ASL arranges inland shipping if needed.

“The new service is of great benefit to Angola’s oil industry needs. A GAL ship sails from the US to Walvis Bay every 20 days,” said Kilbride.

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Johannesburg: +27 11 325 0557 Durban: +27 31 306 4500 Cape Town: +27 21 425 3600

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12 | NOVEMBER 2009

Knowing the terrain provides the edge

By James Hall

R

oad transport can be complex enough in Angola without second or third parties taking part in a shipment’s movement like relay racers exchange a baton. To provide the door-to-door service preferred by its customers, veteran Angolan transporter Castle Transport has had to anticipate logistics challenges with on-the-ground intelligence.

“We handle abnormal loads as well as project shipments, and knowing the country’s terrain gives us an advantage. For instance, we have taken abnormal loads up the Liba Pass, which had never been done before,” said Gerrie Coetzee, co-owner of the company with Ronèl Coetzee.

In addition to the famously difficult Liba Pass, the country’s regular road system offers extreme challenges. In its nearly two decades of operations in Angola, Castle Transport has found the value of doing reconnaissance

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work, surveying routes to scout out difficult portions of the Angolan road infrastructure. They have vast knowledge of the different routes and requirements needed to handle transport in Angola.

“We send up to 35 trucks a week up into Angola from South Africa.

What we offer our customers is reliability, with daily satellite tracking,” said Coetzee.

Maintaining standards and ensuring reliability is achieved by knowing road freight challenges in Angola – which comes from years of experience and having in place a complete shipping infrastructure.

Breakbulk cargo is consolidated at a company warehouse in Gauteng.

Clearing goods into Angola is another major challenge. Castle saw this as an opportunity to offer an extended service to its customers, dug into this complicated process and affiliated itself with a worldwide clearing company, together offering a clearing service at the border for the Castle customer. The customer now knows in advance what

Perfect partners ... Gerrie and Ronel Coetzee.

the clearing costs could be and Castle oversees and monitors the completion of the process.

“We oversee projects as cargo arrives in Durban harbour through to the Angolan delivery point, and when required we personally escort these convoys. We believe in personal attention and involvement.

Some of our cargo comes from Mozambique, which means we travel and clear through five

countries,” said Ronèl Coetzee.

Beyond shipments to Luanda, Castle services Soyo, Saurimo, Huambo, Benguela, Lobito, Lubango and Namibe, but has been called upon to transport to other destinations by some major shippers who know that swift road transport in the often challenging conditions of Angola require a firm that maintains nationwide contacts and does its homework.

NOVEMBER 2009 | 13

Self-sufficiency is crucial to transport success

‘A competent agent is key for this difficult market’

By James Hall

By James Hall

T

he future looks good for transporters into Angola, but for the moment road hauliers entering the market must see to their own needs.

“Preventive maintenance is very important. You have to be totally self-sufficient. We have to carry our own spares. Any problem that the driver cannot sort out himself means you have to send people from Namibia, and they don’t come cheap,” said Pietie Carstens, owner of Warthog Logistics.

Carstens’ firm has been doing longdistance transport for 12 years – and had experience trucking into Angola when the SA business downturn prompted a look into cross-border opportunities.

“With the economic boom they have now in Angola, I think that for at least the next five years transporters will do well there,” he said.

Self-sufficiency on the road until the country’s infrastructure improves is hard to achieve if a driver

cannot communicate.

“We give the drivers a ‘crash course’ in Portuguese and a phrasebook and CD to help them. It seems to work fine,” Carstens said.

“All the trucks are fitted with tracking and we are in the process of upgrading to satellite tracking where we will be able to get a position every 20 minutes via satellite, and will not have to rely on cell phone networks,” he said.

Every convoy of Warthog trucks, which primarily haul perishables like fruit, eggs and vegetables but also equipment and other goods, will be equipped with a satellite phone for communication.

Local alliances are also important to ensure smooth operations.

“Our logistical network is very informal, in the sense that the drivers build a relationship with drivers of other transport companies to help each other with spares and advice. It is also very important to have a good relationship with the agent of the client in Angola. They usually sort out most of the problems, at a fee of course,” Carstens noted.

The language barrier and unfamiliarity with the local business systems are the key complaints of shippers into Angola, who nonetheless want to break into the growing market there.

Gary Wagner of RB Freight Management advises: “Angola is very, very different from other markets. Having a competent agent in Angola is the key to success as they understand and are safe with the Angola systems.”

Forwarding company RB Freight Management is headquartered in Durban with a Jo’burg office. The firm ships globally but specialises in Africa, where its offices can be found in Tanzania, Mozambique, Kenya and Namibia. A new office will open in Angola shortly, Wagner said.

“But we’ve been in Angola for several years. We have a clearing agent at the Santa Clara border.

Currently we ship mining equipment, spare parts (motor industry and mining), food, brewing equipment and also offer a procurement option for

some of our clients. We use all major shipping lines. For over a month we have used our own vessel out of Walvis Bay, the Soranjos, for carrying unitised cargo,” he said.

With vessels stuck at outer anchorage in Luanda port for long periods of time, shippers must expect berthing delays.

“Our airfreight department can manage cargo by air and we are looking into expanding this service.

In the past we have airfreighted mining and other machinery for servicing and reworking back to SA, and then have re-imported the equipment to Luanda and other African countries after the servicing and repair work was completed. A problem with the (Luanda) airport is that shipments go missing, due to excess airfreight cargo in the air cargo area,” Wagner said.

With all the challenges of doing business there, is the country worth the hassle?

In Wagner’s view there is no question. “Angola is a very expensive but a very worthwhile market.”

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14 | NOVEMBER 2009

Namibia gains traction as entry point for Angolan goods

By James Hall

T

he growth of Angola’s economy benefits the Walvis Bay Corridor Group of Namibia, and growth in WBCG port and road transport infrastructure helps Angola’s economy to grow.

This symbiotic relationship has been strengthened this year, with more volumes of all manner of goods shipped into Angola via the Port of Walvis Bay and then brought by road along the Trans Cunene

Corridor through Namibia and up into its northern neighbour to those areas closer to Namibia’s ports than to the main ports of Angola.

“The TCC is the main route for cargo into Angola, and yes, there is a growth in cargo along the route.

We are measuring cargo that goes to Angola from Walvis Bay on a monthly basis, and currently there is year on year growth,” said WBCG business development officer Agnetha Mouton Speaking from the Windhoek

head office of WBCG, an organisation comprising stakeholders involved in the port and road infrastructure of Namibia, Mouton said their tracking had shown that goods sent along the TCC to Angola were largely clothing items, machinery, electrical equipment, furniture, consumer goods and increasingly motor vehicles.

“The traffic volume on the Trans Cunene Corridor has grown approximately 60% when

comparing May 2009 to May 2008,” Mouton said.

Volumes moved along the TCC are expected to continue their upward trend.

“I was in Angola recently, and in terms of its economy the country is a very import-driven market. They depend on imports, and there is an increasing need for commodities,” Mouton said.

Such indicators foretell a strengthening of the Angola-WBCG synergy.

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● Direct deliveries to Cabinda, Malongo, Soyo, Luanda and Lobito

Feature Cross Border Focus Publication date: 5 February 2010 Booking deadline: 4 December 2009

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NOVEMBER 2009 | 15

Major deal ‘cemented’ on Cape Town-Soyo route

‘If the roads are really bad – that’s our territory’

By James Hall

Trucks often repacked for Angolan conditions

W

hen Universal Africa Lines (UAL), which fulfils West Africa’s oil and gas industries’ shipping needs, set up a Cape Town office in May this year (UAL South Africa), UAL CEO Roger Jungblut described the initiative as a strategic move to supply West Africa from within Africa. Only weeks passed before the booming economy of Angola prompted a major transport contract for the subsidiary.

“South Africa is especially well placed to cement its growing international stature on the back of Angola’s rebuilding and the continent’s accelerating emergence as an economic bloc,” Jungblut said.

His use of the word “cement” proved felicitous, because UAL inked a deal in July with the US firm Bechtel Construction to transport cement from Cape Town to the Angolan port Soyo for construction of a major liquid natural gas plant. UAL, which will transport 65 000 metric tonnes of cement in all, won the tender on the basis of years of experience shipping construction supplies via

Soyo for Angolan projects.

UAL-SA runs a fortnightly shipping supply route along the West African coast. Its ports of loading are Durban and Cape Town, and ports of call are Walvis Bay, Lobito, Luanda (Sonils), Soyo (site of the liquid natural gas plant), Pointe Noire, Port Gentil, Onne and Malabo UAL-SA managing director Haakon Røstad feels that SA is in the best position to supply West Africa’s import demands.

“While US and European firms are gunning just as hard for West African business, the South African government has close intergovernmental ties with many African countries. It is an opportunity second to none for local industry,” Røstad said.

UAL-SA will enable SA shippers to deal with a local entity now that UAL, having shipped to West Africa for 33 years, has added Cape Town to its offices in Nigeria, Angola and Equatorial Guinea.

In a recent development, UAL opened a new office in Luanda in partnership with a local company, headed up by GM Monique Gubler.

By James Hall One way to succeed in the increasingly crowded field of Angolan transport is to create a unique service.

The firm Unlimited Logistics has made its mark by combining the know-how of veteran road haulers with a focus on delivering to frontier areas.

“We are the frontier guys who go where other companies don’t want to go. The roads in Angola are bad, but where we go they are really bad. But there are lots of customers who need deliveries there,” said Johan Claassen.

With a fleet ranging from bakkies to Cooling and Super Links at its disposal, Unlimited Logistics transports parcels from a kilogram in weight to full 32-ton cargoes from South Africa to any destination in Angola, Namibia or neighbouring countries.

“Our small loads - one, three, six and eight tonnes – are also moving fast. We deliver anything anywhere, but what we offer our customers that

is special is the experience we have of road transport into Angola,” Claassen said.

“We often have to repack the trucks that have come up from Gauteng for the conditions in Angola because they have been loaded for tar roads,” said Claassen, whose company is headquartered in Windhoek.

“We use very experienced drivers, some with 16 years’ experience (on the Angolan route). They know all the routes and procedures, which is vital to get the freight through safely.

We have our own road bond, and we help customers with clearing and other customs requirements,” Claassen said.

There is no road freight cargo the company won’t move, and key items transported this year have been groceries, building material, steel, fresh water boats and machinery like bulldozers and backhoes for road construction.

“What customers want from us is our experience. All of us have a lot of that to bring to Angolan transport,” Claassen said.

Tel: +27 (21) 851 8305 Fax: 086 690 3415 Mobile: +27 83 656 3334 Email 1: disa@iafrica.com Web: www.fourpl.com

Total Logistical Solutions Local and Cross Border Freight • Bulk – Total Mine to Furnace • Breakbulk • Cross Border – Angola Specialist • CCU, Zimbabwe, Zambia and Mozambique • Road, Rail and Sea • Bulk Warehousing • Finance Solutions – Mine to Port FTW4567

16 | NOVEMBER 2009

New service provides full Africa coverage from the East Accepting a wide range of cargoes

By Joy Orlek

S

hipping to Africa is not for the faint-hearted – and keeping ahead of constantly changing regulations is one of the challenges facing Hoëgh Autoliners, which recently launched a Middle East, India, Africa (MIAF) service.

When FTW interviewed senior manager commercial department, Fernanda de Sousa, a communiqué had just been released by Luanda authorities announcing that vessels carrying used vehicles into Angola would need to discharge in Lobito rather than Luanda. This is part and parcel of operating into Africa – plenty of opportunity but with challenges in abundance.

The line’s strategy of linking major markets to Africa saw the launch of its MIAF service in July this year.

The service offers monthly sailings from Mumbai, Chennai and Colombo

to Maputo, Durban, Luanda, Lagos and Tema as base ports, with others en route considered on inducement.

The service also offers the possibility of loading cargo from Japan, China and South East Asia via transhipment in Jebel Ali. “In view of the enormous growth in Angola we see this as a logical step,” says De Sousa.

“With the MIAF service in place we are able to potentially provide full Africa coverage from the East,” she told FTW. The line can accept a range of cargo, including high and heavy vehicles, project cargoes and oversized breakbulk as well as specialised non-rolling cargo.

Hoëgh Autoliners operates more than 50 Pure Car and Truck Carriers in global trade systems and carried around two million car equivalent units last year, making 3000 port calls.

Fernanda de Sousa … ‘The service also offers the possibility of loading cargo from Japan, China and South East Asia via transhipment in Jebel Ali.’

Anticipating changing situations is an essential part of the mix For veteran shipping firms working into and out of Angola, knowledge of how the country operates is an advantage when advance word comes of changing procedures, which can be anticipated to the shipper’s advantage.

An example happened in early September when Angolan officials declared a ban on second hand rolling cargo, including cars and trucks, from the country’s key port at Luanda.

NileDutch, the global sea freight giant in business in Angola for 28 years, ensured that its customers' second hand rolling stock would

arrive at Luanda aboard the NileDutch Prodigy 847 and the NileDutch Prominence 845 before the September 20 cut-off date, and assured shippers that it would in future route such cargo through the ports of Lobito and Namibe.

Within four weeks the authorities had changed this decision again, and the line adapted the operation immediately by stowing cargo in such way that it can be discharged in Luanda if this is approved (only several days before arrival), and otherwise leave it onboard for Lobito.

Global logistics operator specialises in oil and gas industry

By James Hall Angola’s fuel production sector attracts operators from all over the world, providing lucrative opportunities for transport operators – from shuttling personnel to importing exploration/ production materials, industrial inputs and a miscellany of consumables.

For a worldwide firm with branches throughout West Africa and dedicated to servicing oil and gas-related companies, AMT finds Angola, with its booming oil and gas industry, an important destination.

AMT is a multi-modal logistics operator acting as ship and freight forwarding agent for any party involved

in the oil and gas industry.

Operating out of the main oil production sites in Africa, AMT SA opened in South Africa in January this year.

“Our business is 100% oil and gas.

We serve West Africa in general and Angola in particular, and now East African countries. We supply any kind of services required by the industry, including tailor-made offers such as our oil shuttle. We coordinate all operations from Cape Town,” said Nathalie Jeanneau, AMT RSA branch manager.

As an all-service agency, the company benefits from the support of Necotrans group (including Getma) and offers a wide range of services.

The Angolan ports Luanda, Lobito, Namibe, Cabinda and Soyo are well served by NileDutch with dedicated services from Europe, Asia, Brazil and also South Africa (Durban and Cape Town – SAWA Service). Roro and container vessels equipped with a variety of cargo handling equipment transport project equipment, heavy lifts, containers (including reefers) and roro.

Apart from Angola NileDutch also offers services to other parts of West Africa such as Libreville, Pointe Noire and Matadi. On top of this the line also connects

Durban with China and South East Asia for imports and exports.

This SWAX service operates twice a month between the ports of Shanghai, Shekou (China), and Singapore in Asia and Durban (South Africa), Lome (Togo), Tema (Ghana) and Lagos (Nigeria).

Since June of this year the line has been represented by a new independent entity operating as NileDutch South Africa with offices in Johannesburg, Durban and Cape Town. The company’s nearly three decades of experience includes almost one decade in South Africa.

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CASTLE TRANSPORT

Road TRanspoRT inTo souTheRn afRica

Angola Tel: +2711-907-3914 Fax: +2711-907-3913 castletrp@mweb.co.za

Castle Transport has been actively involved in several projects and Road Transport to and from Angola and Southern Africa since 1992.

During this time we were able to develop the route and supply a reliable road transport link to and from RSA and Neighbouring Countries specializing in ANGOLA.

O

ur Operations team surveyed the routes and has extensive knowledge and expertise, allowing us to supply a high level of service to our customers and contractors alike.

Due to our unique infrastructure and involvement with projects in Southern Africa, we can ensure that a continuous flow of trucks are available at any time.

We handle various contracts to Lubango, Luanda, Catumbela and Port Amboim for

some of the biggest companies in Angola and Southern Africa, as well as Major Corporate Institutions throughout the world.

Our loads include Normal to Abnormal loads (which we specialize in) and Projects.

Destinations in Angola we can assist with are: LUBANGO, NAMIBE, LOBITO, BENGUELA, HUAMBO, LUANDA, SOYO, SAURIMO

The direct and timely delivery of goods to the required destinations in ANGOLA by

Castle Transport, gives our valued clients the lead, as it is a reliable, door-to-door delivery with no double handling en-route.

Vehicles are available on a weekly basis.

Angola.

At present 30-35 trucks depart every week to

Warehouse facilities are available in Gauteng to assist and consolidate deliveries in advance on behalf of our clients.

We maintain reputable relationships and a high standard of service and ensure reliability for all our clients.

We pride ourselves on having solid references for major projects, one of which was taking Abnormal loads up the notorious Liba pass (in Angola), something that had never been done by a South African Transport Company before.

We now offer CLEARING at the ANGOLAN Border.

“Leaders in the Field, Often copied Hard to Follow!”

You want it there, We will get it there.

You are welcome to email us with your Enquiries Gerrie & Ronèl Coetzee – Angola Division

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