At the eighth annual general meeting of the Maputo Corridor Logistics Initiative (MCLI),co-chairmen Dr Mathews Phosa and Dr Antonio Matos outlined what has been happening over the past year on this corridor and the way forward. Simon Foulds looks at what they said regarding the key aspects of the MCLI.

The MCLI is very much dependent upon the partnership of stakeholders, which stretch across the full gamut of the logistics supply chain, public sector and industry associations.

Much of MCLI’s operational activity was focused on supporting users with the implementation of key customs modernisation processes on the corridor. The implementation of Phase 3 of the SARS customs modernisation rollout at Lebombo and the introduction by Mozambique of the Single Electronic Window at Ressano Garcia were both significant developments on this front.

Phosa said: “There is no doubt that the increased electronic interface and the pre-clearance options have had a significant benefit for truck turnaround times, despite the early teething problems. The long-term benefits of electronic clearing far outweigh the short-term agony of becoming accustomed to the new procedures.”

2012 achievements

Matos added: “The success story of the previous year’s partnership has to be the signing of amendments to Mozambique’s transit customs legislation, which was the result of a process of intensive consultation by stakeholders as well as the World Bank-funded report produced by MCLI on recommendations for changes to the legislation. The Ministry of Finance signed the amendments into effect in November last year. These amendments remove the requirements of the application of blanket bonds and guarantees to transit cargo and instead applies a risk management approach, which is crucial to facilitating the ease of transit into a third country. This has enormous implications for the Port of Maputo and for the corridor, as transit growth is critical to ensuring the corridor’s cost effectiveness by facilitating bi-directional cargo flow.”

According to Phosa, the MCLI has just completed an update of a 2010 document, which pulled together a range of critical information that strongly supports the rationale and urgency for a 24-hour one-stop border post at Lebombo-Ressano Garcia. This document not only provides a factual and statistical update, but provides a matrix of actionable issues and potential solutions for the crisis at this border post. This document will be presented to the highest levels of government as well as the departments making up the Border Control Operational Coordinating Committee (BCOCC). The MCLI has also completed a study on the impact of the backlogs created by the lack of the 24-hour one-stop facility. This study, which is hard hitting and factual as opposed to an academic analysis of the border post, will be presented to the president of South Africa, as well as to every ministry that forms part of the BCOCC.

24 hour border post

Phosa said he cannot understand why questions have been raised by the authorities as to the viability of operating the Lebombo Border Post for 24 hours.“The Beit Bridge has been operating a 24-hour border post for more than two years, while the Maputo Corridor, which has the port of Maputo operating 24/7 for 365 days of the year, still does not have a 24-hourone-stop operation. This cannot be good for trade and neither can it be good for creating an enabling environment for trade, deepening regional integration or pursuing the agenda of the Tripartite Free Trade Area (FTA), which is due for implementation in 2014. The Tripartite FTA is a precursor to the continental FTA, which is to be implemented in 2017.While both of these are ambitious plans, the energy with which the regional economic communities are pursing the FTA agenda is considerable and we cannot have a situation where we, on this corridor where traffic and freight growth continues to outperform all predictions, continue to muddle along for 18 hours, with backlogs of traffic flow causing two- to four-hour delays from 06:00 when the border post reopens after a six-hour closure. The South African government must finalise its part of the agreement with urgency.”

Phosa concluded: “Strategically, MCLI will be moving towards finalising a formalised public-private partnership with the corridor governments and the private sector at an institutional level. This is a crucial further step towards ensuring mutual accountability and speeding up delivery on this vital economic node.”