It’s all systems go for 2017 as an uptick in commodity prices signals a more positive outlook for crossborder trade, according to French line CMA CGM. “We expect higher volumes due to an increase in mining commodity exports and more imports of agricultural commodities,” said Anton Potgieter, director of the line’s Inter Africa department. “Exports will generate foreign currency and that will in turn finance more imports,” he said. “The drought in the region is pushing up agricultural imports and aid, while mining commodity prices have recovered from 2015-2016 lows, which bodes well for volume growth in the coming months.” He said at the same time the organisation was seeing a slight increase in intra-regional trade which was set to increase even more as commodity-reliant economies recovered from the mining slump. “Intra-regional trade is the future for Africa but it does hinge on the recovery of local currencies which would boost imports.” Potgieter said CMA CGM was aggressively targeting the crossborder market with the goal of building strong supplier bases in certain African regions. “We will offer complete supply chain solutions to end customers and shippers,” he said. Regional intermodal manager for Southern and Eastern African countries, Benjamin Coston, added: “This year we plan to explore new routes on a through bill basis linking some South African and Swaziland cities to the Maputo corridor. We are also planning to propose an alternative to rail by exploring a roadhaul solution between Malawi and Nacala in Mozambique.” Addressing some of the real challenges in the overborder market, however, must remain a key target for both the public and private sectors. “Delays at border posts are still an issue and it inf lates the market price to customers,” said Potgieter, who believes that the increased use of rail when moving cargo across borders is a viable solution. “Trains don’t stop at borders but go directly to terminals and sidings. Rail needs to become more competitive.” Coston believes it’s just as important to address the complex customs procedures at border posts which vary significantly from country to country – even when in the same region. “The digitalisation of customs procedures between various customs authorities can only help make the overall process smoother.”
