Botswana has moved a step closer to using Mozambique as its outlet for the export of coal, after signing an agreement with Zimbabwe.
The two neighbouring countries have agreed that Botswana will export about 10 million tonnes of coal annually by way of the railway running through Zimbabwe to the Mozambique border. The line ultimately ends at Maputo, where the Matola coal export terminal is operated by a division of South Africa’s Grindrod Group.
There are also plans to build a new deepwater port south of Maputo which would include building a railway extension from Maputo south to the new port. This is a long term proposal however and it seems that Botswana has opted for this route instead of waiting for another proposal to build the Trans-Kalahari railway across the Kalahari Desert to Namibia and the new deepwater port just to the north of Walvis Bay.
In terms of the recent agreement Botswana, Zimbabwe and Mozambique have agreed in principal to undertake the repair and refurbishment of the railway connecting the three countries with the port of Matola/Maputo. The extent of the existing railway is about 1,100 kilometres.
Another possibility is for Botswana to export some of its coal through the South African port of Richards Bay, via a short spur to be built connecting the Botswana rail with that of Transnet Freight Rail in the Waterberg district of Limpopo province, South Africa.
The National Railway of Zimbabwe (NRZ) has become neglected in recent years and much of the network requires upgrading before heavy coal trains can safely operate. The line from Bulawayo to Maputo/Matola is however in reasonably good condition and carries regular traffic

International shipping lines have maintained the piracy charge in their tariff documents long after the menace was eliminated off the coast of Somalia, the Kenya Maritime Authority has revealed. “We need to engage over this matter with those shipping lines,” Kenya Maritime Authority Director General Nancy Karigithu said.She spoke during a meeting organised by the ministries of Transport from Kenya, Tanzania, Djibouti and Yemen to fine-tune a protocol on co-operation on information sharing and training on maritime security. Shipping lines sustain a piracy surcharge of $25 (Sh2,263), $150 (Sh13,578) and as high as $700 (Sh63,364). Source: Standard Media

TITAN Salvage, Crowley Maritime Corp.’s Houston-based marine salvage, emergency response and wreck removal company, has successfully refloated and scuttled the largest and most challenging section of the wrecked bulk carrier, SMART. The vessel was carrying a load of coal when it went aground in August 2013 in heavy seas in Richards Bay, South Africa. Complications ensued when the carrier broke apart after only two days.
At the end of 2013, TITAN’s experts were called to the scene, including Salvage Master Guy Wood, to refloat and scuttle the most complex and challenging portion of the vessel, the bow, which was partially buried in mud. Soon after arriving on scene, the TITAN team deployed its proprietary jack-up barges Karlissa A and Karlissa B – which have a combined total of 1,880 meters of clear deck space and the ability to jack in depths of up to 50 meters – creating a stable, safe working environment. TITAN made preparations to remove pollutants, then lightered remaining cargo via hopper barge. To further reduce the weight of the wreck, Wood and his team made arrangements to have sand and mud removed from the bow using air-lift techniques. The TITAN team refloated, towed and scuttled the bow into designated waters, as approved by the South African Maritime Safety Authority, in only three days.“It was a difficult job because there were so many unknowns,” said TITAN’s Gordon Amos, director of operations.From the very beginning, we had to accurately assess the weight of the bow to determine the lightering process and appropriate pulling forces. This was complicated by the fact that we didn’t know how much mud and cargo filled the forward compartments. Additionally, we were battling five-meter swells and challenging weather conditions. In the end, TITAN made all the right decisions. It was a job well done.”
TITAN is now preparing for the removal of the Smart’s remaining mid-section. This final stage of work is expected to be completed in the beginning of next year.TITAN, a wholly owned subsidiary of Crowley Maritime Corporation, is a worldwide marine salvage, emergency response and wreck removal company based in Houston, Texas, that has performed more than 450 salvage and wreck removal projects since 1980, including some of the most technically demanding projects ever undertaken. The company also has offices and equipment depots in the UK, Singapore & Australia. TITAN responds to vessel emergencies around the world and is able to mobilize a worldwide network of expert salvage professionals and specialized, portable equipment within hours of activation. Additional information about TITAN may be found at www.titansalvage.com

Maritime pilotage is the core profession within UK ports and coastal waters ensuring the 24/7/365 safety and efficiency of shipping movements. 95% of UK trade is done by sea transport through UK ports, with UK Maritime Pilots responsible for the conduct of navigation of the majority of vessels within local port areas as per the port’s regulations.
The quick thinking, decisions and actions of the Southampton port pilot on board HOEGH OSAKA with the ship’s Captain and his bridge team resulted not only in the prevention of a major catastrophic event for the ship but most importantly, saving the lives of the 25 crew members. The decision also ensured the continuing unimpeded operation of one of the UK’s major ports and protected the local marine environment from potential significant pollution had the fuel tanks been inundated. The pilot having grounded the ship intentionally on the Bramble Bank to prevent further deterioration of the ship’s life threatening list, maintained his role of having conduct of the ship and then played a major part in the coordination of the crew’s rescue by the emergency services. Having stayed on board accompanying the master and a senior ship’s officer after all others had been evacuated, further movement of the ship was detected and the pilot subsequently instructed the remaining three to be evacuated by helicopter. All this was possible as a result of the extensive high quality training that UK maritime pilots are required to undertake coupled with significant local knowledge and experience gained through years of professional practice. Not only in ship handling but in all the other complex aspects of ship operations directly and indirectly related to manoeuvring, navigation and cargo transport. “The sound of safety is silence” yet in some quarters of the UK ports industry there is a misconception that because everything is going right then there must be no need to operate pilotage services at such high levels of expertise and training. This conveniently overlooks that it is exactly because of the significant investment in pilotage operations that on a day to day basis UK pilots safely conduct thousands of ship movements without high profile incident, dealing with the complexities as they arrive. The manner in which the Hoegh Osaka situation as it evolved was handled by her pilot is testament to the rewards that are inevitably reaped from proper investment in the training and operation of port pilotage services and the professionalism and dedication of UK pilots.

MOL president Koichi Muto has thrown down the gauntlet to rival container lines in his New Year message by confirming the Japanese transport group’s strategy to upgrade its boxship fleet with an order for 20,000teu ultra-large container vessels. Admitting that MOL’s container division “is showing a significant deficit for this fiscal term”, which ends on 31 March, Mr Muto announced a “counter-offensive year”. He said: “I think many of you may be worried about our containership business.And the fact is, in terms of competitiveness and earnings strength within the industry, we are somewhat behind. “As far as the structural problem our containership division faced, we have already taken steps to reform the business, such as upgrading the fleet with the world’s largest containerships – 20,000teu – to make us more cost-competitive.” Despite describing 2014 as a “very severe” year for MOL, Mr Muto said the depreciating Japanese currency and a dramatic fall in bunker prices would prove a “favourable wind” for the group in the coming months. While Mr Mutu did not give any details of the ULCV order, it is known that other members of the G6 alliance have made enquiries at Asian shipyards about construction options and talked with non-operating containership owners concerning long-term charters. Indeed, with the commencement of the 2M and Ocean Three east-west alliances this month, and their deployment of 16,000teu-plus ships, MOL and its G6 partners are conscious of being disadvantaged in terms of unit costs and economies of scale.Meanwhile, competition for the title of “world’s largest containership” remains fierce, having changed hands twice in the last two months after Maersk Line’s 18,270teu Triple-Es launched in 2013.
In what Alphaliner described as “the amazing containership race or capacity inflation gone askew”, the Maersk flagships were usurped by China Shipping Container Lines with the launch of its 19,100teu CSCL Globe in November. However, the ship, which will make its maiden call at the UK port of Felixstowe on Thursday, did not hold the title for long – Maersk’s 2M partner, Mediterranean Shipping Co, soon took delivery of the MSC Oscar, which has a declared capacity of 19,224teu. The vessels are of almost identical dimensions but differ in capacity due to bay distribution. Alphaliner has argued that, in practice, deadweight limitations will actually determine the maximum load factors achieved by the carriers. Alphaliner calculated that the usable capacity of 18,000-19,000 teu vessels on the Asia-Europe headhaul tradelane would in fact, depending on seasonal deadweight and design factors, be in the range of 16,500-18,000 teu – based on an average weight of 11 tonnes per teu.Mr Mutu also noted in his address that according to the Chinese zodiac, 2015 is theYear of the Sheep, and given the current mad rush by carriers to operate the world’s biggest containership, it would seem an apposite star sign. Source : The Loadstar

Wishing all our colleagues, friends and clients a very successful and happy new year.
All the best for 2015

The BMC Team

The World Bank will loan Kenya and Tanzania 1.2 billion US dollars to improve inland waterways and ports, as part of efforts to boost integration in the region.
The bank said in a statement issued in Nairobi on Saturday that the funds will be used to revive inland waterways on Lake Tanganyika and Lake Victoria and improve handling capacity and efficiency in the Mombasa and Dar es Salaam ports.
The five-nation East African Community (EAC), which also comprises of Uganda, Rwanda and Burundi and has a combined US$ 110 billion economy, is working to package cross-border infrastructure plans to make them more attractive to potential financiers. Oil and gas discoveries in Kenya, Uganda and Tanzania have turned the region into an exploration hotspot.
“The World Bank Group’s investments and support to reforms anticipate the boom of extractives in the region and will facilitate easier movement of people, goods and capital,” the bank said in a statement issued at an EAC meeting in the Kenyan capital.
It said the funding was to help the bloc’s investment plans over the next three to seven years. The European Union’s representative at the meeting, Filiberto Sebregondi, said the EU was ready to support projects worth up to €600 million ($750 million).
The bloc said in a 2015- 2025 strategy paper presented at the meeting that it needs at least US$ 68 billion and possibly up to US$ 100 billion, over the next decade to develop roads, ports, railways, transmission lines, oil and gas infrastructure. – Tanzanian Daily

Japanese group Mitsui & Co plans to acquire a stake in a coal project of Brazilian group Vale in Moatize, in Mozambique’s Tete Province, according to Japanese financial newspaper Nikkei.

The newspaper said that Mitsui would buy a 15 percent stake in Vale Mozambique, the Mozambican subsidiary of Brazilian group, for US$450 million.

The same source also said the Japanese group would acquire half of the 70 percent that the Vale group has in the Nacala Corridor, which has Mozambican state port and rail company CFM as a partner.

The Nacala Corridor includes a railway between Moatize and Nacala, via Malawi and the deep water port of Nacala. A test train successfully completed a round journey on this route last week.

Mitsui & Co group is involved in natural gas exploration in Mozambique and has a 20-percent stake in the Area 1 concession of the Rovuma Basin, led and operated by US group Anadarko Petroleum. – macauhub

After a disappointing response the first time round, Transnet National Ports Authority published a request for proposals (RFP) in the recent Sunday newspapers, citing Cape Town Port and the desire to create a cruise terminal at E Shed.
This new tender for the Cape Town cruise terminal proposal ends on 5 February 2015. The successful operator will have an operating licence for 20 years. A similar RFP which was issued earlier for the Port of Durban is currently undergoing assessment.
The reason why TNPA rejected proposals the first time round for Cape Town is not clear. It is believed that one of those who submitted a RFP included the V&A Waterfront company with a proposal of connecting the E-berth terminal with the V&A Waterfront by way of an overhead pedestrian walkway or bridge.
The rejection by TNPA of the previous set of proposals surprised many observers and in the absence of reasons for this from Transnet it will be of interest to see how many new proposals will now be received. The Waterfront, because of its close proximity and the resultant benefits it will receive from such an arrangement, are sure to once again make their bid.
Given the fact that the South African cruise season is relatively short presents greater challenges to anyone wanting to develop such a terminal. Take away the number of cruise ship calls by MSC Cruises, which caters largely for South African passengers, then the number of visiting ships each year is quite low, averaging less than 20. The real benefit of a terminal will come from these ship calls, rather than those provided by MSC Cruises and its multiple calls for mainly local passengers.
It’s thought that the delay with announcing details of the Durban RFP, which Tau Morwe said in September was expected imminently, may well be tied up with concerns expressed by the eThekwini Municipality (Durban) that a new terminal at Durban’s A/B Berth area close to the Point Waterfront, could turn out to be a white elephant.

Transnet National Ports Authority is reported to be also preparing tender documents for ship repair facilities, including a floating dock at Richards Bay and oil rig repair facilities at Saldanha Bay.
In addition, TNPA is also considering new extensions at Island View in Durban and a new liquid bulk facility at East London.

By John Muchira

Kenya’s sole oil-importing facility is set for decommissioning following the contracting of Danish engineering firm Niras to oversee the construction of a new oil terminal.

Barely two months after the East African nation revived plans for the construction of an offshore fuel loading and offloading facility, State-owned Kenya Ports Authority (KPA) contracted Niras as the consultant for a newoil terminal in Mombasa to replace the 50-year-old Kipevu oil terminal.
The preliminary design work for the new terminal is estimated to cost $1.7-million, while construction will cost $120-million. The project is set for completion in 2017.
KPA head of project development and management Daniel Amadi says the project is aimed at quadrupling Kenya’s oil import capacity to meet growing demand in the country and the region.
The new terminal, to be located adjacent to the existing one, will handle four ships of up to 150 000 dead weight tonnes (DWT), up from the current capacity of one ship with a maximum 100 000 DWT. Increasing capacity will allow larger quantities of refined oil products to be imported, while improving efficiency.
The fact that only one vessel can dock and offload at Kipevu has been a major cause of high fuel prices in Kenya, owing to oil companies incurring huge demurrage costs.
Niras is to design the new terminal, prepare tender documents for the constructions works, including the many electrical and mechanical installations, such as pipelines and loading arms, and supervise the entire construction works.
Niras business unit director Jesper Harder adds that the infrastructure at many African ports is often inadequate and is deteriorating, despite the fast-growing economies on the continent, which provides an opportunity for Niras.
The decision to replace the Kipevu terminal, the country’s primary facility for receiving imported refined petroleum products, comes at a time when demand for petroleum products in Kenya and the East African region is growing significantly.
Edited by: Martin Zhuwakinyu