Thursday, 25 February 2021 SP TLIGHT on Transport & Logistics

Keeping Namibia Moving During Covid-19

A PUBLICATION OF 2 Spotlight on Tran sport & Logi stics Thursday, 25 February 2021 Logistics Sector Hit by Covid-19 Disruptions said the transport industry should alleviate these challenges. know the regulations as these are During the celebration to mark announced periodically. World Customs Day recently, finance He said the announcement of the minister Iipumbu Shiimi said the impending arrival of the Covid-19 sustenance and security of the vaccine had created an expectation supply plays a pivotal role in the that recovery and revenue movement of goods across borders normalisation could happen. and countries. It has created an expectation “Due to the capacity developed but not a certainty, looking at what over the last few decades, we were happened in South Africa with able to seamlessly coordinate the the vaccine because of lack of movement of essential goods like understanding what the vaccine is medicine and food across the entire and its delivery time,” he added. supply chain, despite the brunt of the He added that the expectation has pandemic,” Shiimi said. Statistics seen the retail and consumer market issued by the Namibia Statistics Photo: Contributed slowly picking up pace which signals Agency last month showed that IMPACTED ... The logistics sector in Namibia had to adjust to constantly changing travel that demand for goods and services Namibia’s trade balance remained in restrictions, weekly Covid-19 tests and endless border control queues. would follow suit. a deficit of N$546 million, narrowing He further said the pandemic from N$2,6 billion recorded in might have hampered the supply November 2020 and against a • SHELLEYGAN PETERSEN Lesotho, Namibia, South Africa and Namibia were already chain globally but it is in a better surplus of N$19 million in December and Eswatini. experiencing a recession just state than sectors such as tourism 2019. HE Covid-19 pandemic “Governments across the before the Covid-19 outbreak, because air freight services like Namibia exported mostly to China, has disrupted the global globe continue implementing while Eswatini and Lesotho were Ethiopian Cargo & Logistics Services South Africa, Botswana and Belgium supply chain as a result of T lockdowns and border closures experiencing growth rates below and Qatar Airways Cargo continued which accounted for 70% of the restricted access to countries, a to contain the pandemic. This has 2% over the past four years. to move goods during the pandemic. country’s total exports. situation no longer determined by resulted in logistical constraints, Economist Salomo Hei said At the height of the first wave of Namibia imported mainly from permits but by health ministries slowed business and trade industry depended on clear-cut Covid-19 infections, DHL, revealed South Africa, Zambia, China, and departments, to protect activities, and a resultant communication on the pandemic several logistics-related challenges Democratic Republic of Congo and citizens and control the spread reduction in the movement of regarding regulations because it linked to inbound logistics and Spain. These countries supplied of the virus. crossborder trade and people, severely impacts the revenue. distribution. 76,3% of goods and services needed The logistics sector in Namibia and in some cases halted “The inability to communicate The pandemic demonstrated that in the country. had to adjust to constantly production,” Elago said. clearly hampers the movement with sufficient planning and effective Last year, at the peak of Covid-19, changing travel restrictions, In February last year, Sacu said of goods and services where partnerships with supply partners, public enterprises minister Leon weekly Covid-19 tests and one of the industries impacted ordinarily transport companies couriers can be important success Jooste tweeted that Namibia can endless border control queues. negatively by the pandemic was would spend eight hours at factors for governments looking to become competitive as a logistics In the last 12 months, Namibia construction because it took the border, they now take 48 secure critical medical supplies hub by unlocking niche opportunities opened and closed its borders at longer for imported materials hours. That has an impact on during health emergencies. to capitalise on its geographical least three times, limiting access to be delivered. turnaround times and what In a recent article, DHL said it position and serve neighbouring only to emergencies and leaving According to the finance the client wants to do with the had encountered challenges related countries by optimising efficiency. haulage truck drivers stranded. ministry, revenue from Sacu product,” he added. to product-quality, constrained “[It is] time for Namibia to take Southern Africa Customs is expected to fall by 33,7% in However, this was the case transportation capacity, complex our place as a seriously competitive Union (Sacu) executive secretary 2020/21 from N$22,3 billion to recently when truck drivers were customs processes and regulations port in SADC.” Paulina Elago recently said the N$14,8 billion in 2021/22. barred from entering Namibia that worsened delays, warehousing This was in response to a tweet pandemic had continued to According to South African without Covid-19 test results and challenges, and limited transparency on how Namibia’s efficiency was disrupt global activities across all media, in April last year, Sacu were forced to return to Zambia regarding stock levels. proving costly to South Africa as economic sectors and industries, said with the exception of to get their certificates. The company suggested that ships turned to Walvis Bay rather including logistical processes. Botswana, which had recorded Minister of health and social by partnering suitable logistics than wait five days to dock in Cape Sacu members are Botswana, high growth rates, South Africa services Kalumbi Shangula services providers, governments can Town and six days in Durban. Connecting the World Through Logistics

• STAFF REPORTER and supportive family, so having them Katjimune initially wanted to do need to create an environment that constantly rooting for me encouraged maritime studies abroad, but a enables women to study and work ISA Katjimune (28) says me to fulfil my passion for transport lecturer at Nust convinced her that in any industry they want, without the transport and logistics and logistics,” Katjimune says. she would be exposed to an even belittling them or making them feel Lindustry has opened a new She says her passion for transport broader world and understanding of less important.” world to her. and logistics stems from her love for the industry by studying transport Katjimune, who currently works at Katjimiune is a distribution all things freight and cargo, and how and logistics. Windhoek Observer, says transport officer, who completed high school they keep the world connected. “The main subjects we did were and logistics can provide many at Jan Möhr Secondary School “As a child, my grandfather and I business logistics and supply-chain opportunities, especially with Namport in Windhoek and initially studied used to watch television shows on management, maritime and transport being among the largest logistics hubs education at the University of how the different types of cargo, such economics,” Katjimune says. in southern Africa. Namibia. as containers, liquid bulk, dry bulk, She says the perception exists that “I am planning on doing my master’s However, she dropped out in her break bulk and RoRo are transported the industry is for men only. degree in logistics this year, and I second year. all around the world. I fell in love with “People undermine you, look down believe it will be very beneficial to me. “I felt like a failure and wasn’t sure the whole transport industry. on you and believe you won’t survive “I am immensely grateful for the where my life was going, but my family “Being granted the opportunity to in a male-dominated industry, but opportunities this field has granted kept motivating and encouraging me study it at the Namibia University of you need to keep believing in yourself me, enabling me to provide for myself to never give up. Science and Technology (Nust) opened and pushing yourself to always do and my family and to be independent,” “I come from a very close-knit many doors,” she says. better and prove them wrong. We she says. Lisa Katjimune

CREDITS MARKETING: Carolin Guriras PROJECT COORDINATOR : Dianne Ludwig SCAN TO VIEW THIS SPOTLIGHT SUPPLEMENT EDITORS: Ashley Smith, Theresia Tjihenuna PUBLICATION: EDITION LAYOUT & DESIGN: Lotta Kaapanda SPOTLIGHT ON TRANSPORT, LOGISTICS SUBEDITOR: Nick de Voss VEHICLE INDUSTRIES 2021 Thursday, 25 February 2021 Spotlight on Transport & Logistics 3 STP Ensures Customer Satisfaction by the Truck Load

• ADAM HARTMAN In fact, the company ensures that staff is well trained and highly LTHOUGH Scandinavian Truck motivated to deliver top quality Parts (STP) in Windhoek’s customer service at all times. ANorthern Industrial Area Constant training and hands-on specialises in the delivery of quality management have ensured this. affordable truck spares and parts, The company ensures it is open six the company boasts exceptional days a week, while having an after- customer service and care. hours emergency service which will Why is that? provide customers with parts required Says STP boss Uli Roland: “Today’s 24/7, all year round – and this at no business environment is tough and extra cost to the customer. parts availability must go hand in hand “We will also endeavour to source with understanding customers’ needs any part not immediately available in terms of pricing, quality, delivery and fly this into Namibia, should this lead times and giving the customer be urgent,” Roland said. STP was the certainty that we will walk ‘the established in 2006 in response to extra mile’ for him.” a strong market demand for more Photos: Contributed The company’s complete focus on affordable truck parts, and currently BOSS ... STP managing director Uli Roland says customer service is the foundation of a customer service and its excellent employs 18 people at its branches successful business. parts availability is what Roland says in Windhoek, at Walvis Bay and separates STP from competitors. Ondangwa. From humble beginnings,

it has become one of the major players in the flying or road transport (if from South Africa),” aftersales truck parts business for Scania and he explained. Roland said the company was Volvo in Namibia as it imports its parts from impacted by Covid but has quickly bounced manufacturers and suppliers worldwide. back. “Parts not readily available could cause “Fortunately, we have not had any problems customers to lose delivery contracts and even with parts delivery and boast close to 100% cause delivery of essentials such as food stuff parts availability during Covid-19. or medicine to be delayed. Our staff is now more motivated than ever We source these parts worldwide and, once to deliver top quality customer service as this found, readily give clients various options in is the only way to secure their own future and terms of transporting them, such as shipping, that of the company,” he said.

SUPPLY ... STP endeavours to source any part not immediately available and fly it into Namibia, should it be urgent. Parts are sourced worldwide. In general though, parts are always available. 4 Spotlight on Tran sport & Logi stics Thursday, 25 February 2021 WBCG: 21 Years of Boosting Namibia’s Economy EVOLUTION sector,” Hasheela says. Another persistent passenger facilitation measures. Group communications manager challenge has been the regional market’s The first successful secretariat established Cindy-Lu Hasheela says after Namibia’s perception that the Walvis Bay route is was the Trans-Kalahari Corridor secretariat independence, Walvis Bay was converted more expensive than other routes, but the in 2007, followed by the Walvis Bay- from a fishing port to a commercial port. WBCG’s extensive business-development Ndola-Lubumbashi Development Corridor “Cargo moving from the port along the and marketing efforts to convince potential secretariat. The WBCG currently hosts the corridors started from a zero base, as customers to reroute has been successful African Corridor Management Alliance’s all the goods destined for Namibia were with some customers. secretariat. The objective of these transported on road via South Africa,” she secretariats is to reduce transport costs and says. FACILITATION transit periods along the corridors. The Namibian Ports Authority (Namport) The WBCG realised its need for key support and TransNamib established the WBCG as a functions to achieve its core business. TAKING STOCK promotion and business development arm to The HIV-AIDS Help Desk was launched to WBCG chief executive officer Mbahupu Mbahupu Tjivikua assist in creating awareness of the new route address the disease in the transport sector. Tjivikua says the past two decades have been in the regional and global logistics arena. It started as an information-sharing a journey of continuous development, with • ADAM HARTMAN From the beginning the WBCG focused platform and dispatched condoms, but is volumes through Namibia’s ports growing on marketing and promotion activities, now considered a top-tier wellness partner from zero to over a million tonnes per year. HE Walvis Bay Corridor Group (WBCG) and it soon became clear that continuous to the Ministry of Health and Social Services. In terms of major disruptions to global is celebrating its 21st anniversary engagement in neighbouring countries was The project currently has five roadside logistics and supply chains brought about Tthis year. It has become a Namibian needed to secure cargo to and from these clinics, with another four planned, as well as by the pandemic, Tjivikua says governments success story and a key institution driving markets. four mobile clinics operating countrywide. and industries are compelled to forge closer the agenda of the transport and logistics This led to the introduction of business- The service provides HIV-AIDS and other working relations with their neighbours to sector to the country’s benefit. development offices in four key markets: primary healthcare services to mobile facilitate the flow of cargo along routes. Since its inception, the WBCG has been Zambia, the DRC, SA and Brazil. populations. This bodes well for the Africa Continental on a mission to grow cargo volumes on the Most recently, the project supported the Free Trade Area agreement, whichPhoto: aims Contributed to Walvis Bay corridor by promoting imports CHALLENGES government’s efforts to contain the spread harmonise policies and procedures across and exports through the ports of Walvis Bay “Although the cargo volumes continue to of the coronavirus by making its clinics the continent, he says. and Lüderitz for the southern African region. grow on the route, challenges hinder repeat and staff available to screening and testing “Reducing transit time, removing The Walvis Bay corridor involves a business, and so the need for a single point services. bottlenecks and improving corridor network of transport routes linking Walvis of coordination . . . to trade on the corridors Another key support function is the efficiency through PPPs remain the Bay to the Southern African Development arose,” Hasheela says. Namibia Logistics Hub initiative, emanating cornerstone of the Walvis Bay Community (SADC), and include the Trans- This resulted in the emergence of the from the industry and the WBCG’s lobbying corridorsstrategy to reduce the cost of Kalahari Corridor connecting Botswana WBCG as a corridor management institution to have it added as one of the main economic doing business in SADC,” he says. and South Africa (SA); the Walvis Bay- (CMI) to promote and coordinate efficient priorities to Namibia’s fourth National “The WBCG has established good working Ndola-Lubumbashi Development Corridor corridor development and operations. As a Development Plan. relationships over the years. We thank all connecting Zambia, Zimbabwe, Malawi and CMI, the group attributes its success to its The group advocated the establishment our stakeholders who made this possible,” the Democratic Republic of Congo (DRC); the unique public-private partnership model. of trans-boundary corridor management Tjivikua says. Trans-Cunene Corridor connecting Angola; “This collaboration is incredibly important secretariats to regulate and oversee “We are increasingly establishing the and the Trans-Oranje Corridor connecting for economic development within the the development and implementation of WBCG as the preferred provider of transport SA with the port of Lüderitz. region and for the growth of the private seamless cross-border trade, transport and and logistics solutions.”

The Namibian Democratic Republic of the Congo Tanzania Logistics Hub

Angola Malawi initiative Zambia Transforming Namibia into 2 1 Zimbabwe Namibia an International Logistics Botswana Hub for the Southern Africa 3 Mozambique region.

THE WALVIS BAY CORRIDORS:

4 Swaziland 1 Trans Cunene Corridor

2 Walvis Bay-Ndola-Lubumbashi Lesotho Development Corridor South Africa 3 Trans Kalahari Corridor

4 Trans Oranje Corridor

Find us on:

or visit our website: www.wbcg.com.na Facilitating the free flow of trade to and from the SADC region. Thursday, 25 February 2021 Spotlight on Transport & Logistics 5

Johan Laubscher Matthew Kooper Photos: Contributed D&M Rail Helping Coastal Economy to Stay on Track

&M Rail Construction aims to make workers and other skilled employees from housing, retail and various other sectors. a tangible, worthwhile and significant Otjiwarongo, Otavi, Ondangwa, Tsumeb and D&M Rail’s position to make use of mainly Dcontribution to the socio-economic Kalkfeld and Omaruru and the rest are being local contractors to provide essential goods development of the coast, says its chief sourced from the Erongo and the coast. and services has ensured that in the past five operating officer Johan Laubscher. “Our technical teams are highly months of setting up office at Swakopmund, The company has been subcontracted in experienced and have worked on various it has spent in excess of N$1 million per the rehabilitation of the 53 km railway-line similar railway rehabilitation projects month on local contractors. between Walvis Bay and Swakopmund, around the country and are really critical “This will further contribute to the which also forms part of the section between in meeting the high technical standards as economy of the region. We are fully aware of the harbour town and Arandis. well as tight deadlines and budgets set,” the effects the Covid-19 pandemic had on the The rehabilitation project for the entire said Kooper. economy of the region, but remain confident section of about 107 km was launched in “In addition, we sourced from the that our little contribution will go some way December last year, and is being done by experienced general workers whose in alleviating some of these effects. China Gezhouba Group Corporation. The contracts had ended in 2019, to assist on the We remain committed to employment construction period of the project is about project and bring with them the experience creation and the socio-economic two and a half years. and motivate the remaining employees to development of the communities in which At the launch, transport minister John be drawn from the local area. It has always we operate,” Laubscher concluded. Mutorwa said that good transport and been D&M Rail’s position to employ as many logistics infrastructure will go a long way in of our staff from the local workforce, and the OTHER AREAS OF OPERATION enhancing Namibia’s competitiveness and Erongo region will by no means be different.” D&M Rail Construction is also involved vision to become an international logistics According to him, five new employees in the rehabilitation of the 392 kilometre hub serving mostly landlocked countries from the region obtained certificates of of railway track between Kranzberg and within southern Africa. competence after they completed external Tsumeb. This was started in 2012 after Laubscher said he is proud to be part of practical and theoretical training in numerous derailments were recorded on the project. operating heavy machinery such as TLB, that line. To date the company has upgraded “Although we are subcontracted to the excavators, grader and front- end loader.s some 272 kilometres of track. main contractor, and only have 20% of the The company works in collaboration with Upgrading is the removal of old steel contract, D&M Rail brings with it a hub of the labour ministry in the identification and sleepers and replacing them with new railway engineers and technicians with recruitment of local staff. concrete sleepers and new ballast. unrivalled experience to ensure that this In order to provide much needed project is a success,” he said. SAFETY employment, this is all done by hand and According to him, during the following Safety of the workforce remains top to date the company has employed well 13 months, the company will be removing priority and the company has put all over 300 Namibians at Tsumeb, Otavi, tracks and sleepers and replacing them regulatory and legislative measures in place Otjiwarongo, Kalkfeld and Omaruru. with new sleepers and tracks “to ensure to ensure that no harm comes to employees The company also boasts with its own a world-class, well-functioning railway during their working hours on and off site. training centre at Otjiwarongo where system essential for the government’s vision Experienced safety officers can be found over 168 Namibians have now been to transform Namibia into a logistics hub, all over the site ensuring safe working trained in various skills related to railway connecting SADC to international markets”. practices are maintained and Covid-19 construction and maintenance over We remain committed to D&M Rail Construction has over the years regulations are adhered to. the years. Recently, more than 200 employment creation and the constructed and maintained over 600 km of Last November, eight employees D&M Rail Construction workers received railway-line, which include the Kranzberg- successfully completed four days external Emotional Intelligence training (focusing socio-economic development Tsumeb line, Ondangwa-Oshikango line, training as safety representatives, first on communications in a culturally diverse of the communities in which and the Aus–Lüderitz railway line – as well aiders and firefighters. Seven female workplace and ambassadorship) from Usi we operate. as numerous sidings for private companies. employees completed a five-day external Hoëbeb Communications, a Namibian Johan Laubscher practical and theoretical training as Public Relations firm. - HUMAN RESOURCES protection officers/flagwomen during In addition, D&M Rail Construction The company aims to provide up to about December. has provided 14 bursaries to employees 250 direct and indirect jobs, most of which to further their studies at institutions of are earmarked for coastal residents. ECONOMIC CONTRIBUTION higher learning and donated well over According to the human resources Laubscher said that the employment of N$2,4 million to various worthy causes manager, Mattheus Kooper, the company more than 250 staff members will make as part of its corporate social investment brought in 54 employees consisting a meaningful contribution to the local endeavours. of platelayers, experienced general economy through local spend on rent and 6 Spotlight on Transport & Logistics Thursday, 25 February 2021

Navigating the World of Logistics

• STAFF REPORTER universities to get the opportunity to be expanded my horizon in the field to taught about various career choices and understand the importance of transport INTE Mufwambi is a 25-year-old that’s where I came across the field and logistics in our daily lives. I then logistics administrator. of transport and logistics offered by realised that this field is actually a S She says her journey into the the Namibia University of Science and lifestyle,” Mufwambi says. field of transport and logistics began Technology (Nust). Her bachelor’s degree comprised during her high school years at Erundu “Soon after finishing high school in of modules that have an impact Photo: Contributed Secondary School in Oshakati. 2015, I applied for one of the courses - on transport sustainability. These “We used to attend career fairs where a Bachelor of Transport Management. included road safety and infrastructure PASSIONATE … Logistics administrator Sinte high school pupils were invited by local Beginning my studies at the university management, transport economics, Mufwambi at work.

transport legal framework and transport operations management. “I fought with pride during my three-year degree and I obtained my qualification in 2018. My interest in the field continued to grow and as I learnt more and more about it when I joined Rennies Logistics in 2019.” Managed Solutions Namibia She describes the industry as male- dominated. “The logistics profession Your local partner with global reach continues to be dogged by the perception that it is all about moving and heavy lifting, which has traditionally instilled the masculine image as part of the field, hence, limiting women’s entry into the field. “I was further motivated, and went on to purse my honours degree in Logistics Scalability and Innovative and Supply Chain Management to learn Responsiveness Technology more critical subjects like strategic supply chain management, projects in supply chain management, advanced logistics operations and procurement and supplier Single point relationship management. I am proud of contact - Local to say that I managed to pass all these Control knowledge - modules and I was able to eliminate Tower Global barriers that limit women,” she says. capabilities expertise Mufwambi says transport and logistics Benefits are a very essential component of supply and chain management. Features “They align transportation, shipping and receiving, importing and exporting Primary Global operations, warehousing, inventory freight transport procurement management, purchasing, production throughout services planning, and customer service. SADC “We are all witnessing the impact of Covid-19 on supply and demand, especially of essential products. “We have seen how many businesses Intermodal International have found themselves unable to navigate hub in Freight the disruption to ordinary service. Windhoek Management “This is where logistics and supply chain management - the art of the flow of goods from manufacturing to consumers - comes into play, highlighting the vital importance of this field. “For women, my message is that we must step out of our comfort zone. It takes courage for women to thrive in an environment dominated by men,” says Mufwambi, adding that women must not be limited by their gender. “We should focus on the qualities we bring to the table and be proud of the role we can play. “We must also support and empower each other. “That means women working together, but also in collaborative partnerships with men to work better together.”

We are all witnessing the impact of Covid-19 Third floor, Icon Building, 144 Jan Jonker Road, Windhoek | Tel +264 83 331 6019 | [email protected] on supply and demand, www.imperiallogistics.com especially of essential products - Sinte Mufwambi customise • collaborate • compete Thursday, 25 February 2021 Spotlight on Transport & Logistics 7 What is Dynaflex Technology and How Does it Work?

YNAFLEX Technology is This requires strict monitoring and We already have a premium petrol the name of the latest calibration of additivation and pumping product, Shell V-Power and due to Dtechnology at the heart of equipment. Namibia being a regulated market, the Shell Fuel Save Diesel. We test our fuels from when they get it wouldn’t make business sense to Dynaflex formulation is a into the country, and even on a daily have two additivated petrol fuels in the complex blend that is specially basis at our forecourts, using our Shell same market, as we wouldn’t be able designed and enriched with Quality Kits. to sell them at different prices, as the powerful cleaning agents to help government regulates this. Basically maintain the cleanliness of key fuel Why only Shell FuelSave Diesel and our customers get premium products system components, protecting not Shell FuelSave Petrol? at no extra cost to them. them from performance robbing deposits, and helping to maintain engine efficiency. It has been developed to meet the demands of modern engines, as well as continuing to deliver benefits in more traditional ones. Dynaflex formulation represents the biggest change in formulation since Shell began offering premium fuels nearly 20 years ago and are the result of tens of thousands of hours spent on research, development and extensive testing taking more than five years.

Can Shell FuelSave Diesel deliver long term benefits to your vehicle? Yes, it definitely can. Engine efficiency is the main benefit at the end of the day. All this is due to the following additives which are designed as part of Dynaflex technology. The additives include: Antifoaming additives – Base diesel has the tendency to foam, but our antifoam additive allows faster safer fill and a fuller tank Anticorrosion additives on key fuel system components to improve engine efficiency Detergent additives to clean and help clean key fuel system components such as injectors. Meaning you don’t need to add WHEN extra third party products such as injector cleaners, as our Shell FuelSave Diesel is a final product. Demulsifier additive which basically allows the separation EVERY of water from the diesel should it have gotten into the fuel tank for whatever reason Customer will experience HOUR ON reduction in CO2 emissions, which ultimately helps protect the environment and will be more important looking at the future. THE ROAD How often should drivers fill up with Shell FuelSave Diesel to get the benefits? Filling up regularly with Shell FuelSave Diesel helps keep your COUNTS engine clean and protected for efficient running. Our new, most advanced cleaning formula with exclusive The more consistently the car DYNAFLEX Technology is designed to keep your fleet moving owner fills with Shell FuelSave Diesel, the more likely they are and provide more power to your wheels by helping to clean to experience from the benefits of Shell FuelSave Diesel. I’d even go up injector deposits and prevent further build-up. so far as to challenge our viewers to fill up with our competitor products for say a month, and then do the same with our fuels after for a month so they can experience the true benefits of Shell FuelSave Diesel.

How does VEN get its fuel into the country, supply and distribution related and quality control? We get base fuel into the

country compliant with national Compared to our previous formulation versus regular diesel without fuel economy formula. Actual savings may vary according to specifications which is then locally vehicle, driving conditions and driving style. Internal Shell tests and with our customers have shown a range of fuel savings depending additivated at our various storage on age of vehicle and type of operations. See www.vivoenergy.com for more information about DYNAFLEX Technology. facilities across the country. 8 Spotlight on Tran sport & Logi stics Thursday, 25 February 2021

Investment in Logistics Keeps Growing

• LAZARUS AMUKESHE

HE success of the Africa Free Trade Area agreerment Tlargely hinges on good infrastructure, analysts say, and banks have extended billions in loans to the logistics sector in the last five years. Data from the central bank shows that Namibian commercial banks have extended loans to the transport and communications sector to the tune of N$7 billion. This was granted mainly to provide working capital, as well as investment in assets. In 2017 the secretary general of the Organisation for Economic Cooperation and Development, Angel Gurría, said investment in transportation needs to move toward “building right”, not just “building more”. In Namibia, the private sector has minimally invested in transport infrastructure, which Gurría a few years ago said needed to change. “The private sector has a key role to play in this shift, which would help governments to meet the pressing economic, social, and environmental challenges they will face in the coming decades. Governments must play a central role in mobilising private- sector investment for sustainable transport infrastructure,” he said at the time. In a Bank of Namibia report on the funding of Namibian infrastructure released in 2014, researchers said reliable infrastructure is critical for high and sustained economic growth. Imported products enter Namibia mainly via road transport. Recent data from the Namibia Statistics Agency shows that road was the most frequent mode of transport used for imports in December 2020. It amounted to N$6 billion, representing 72,5% of all goods imported into the country. For 2020 alone, over N$70 billion worth of goods came in Namibia by road. A haulage sector once dominated by South African companies now Anything but has several Namibian players transporting goods to and from the general cargo country’s trading neighbours. The Namibian University of You carry the essentials that make our world go round. Essentials that we often Science and Technology boasts take for granted. Most people have no idea about the long hours spent on the highway. an operational Namibian-German To arrive on time you need a vehicle that is anything but general. This is why we Centre for Logistics, which aims don’t do one-size-fits-all trucks. No. At Scania, we tailor solutions for the only at supporting the tasks and needs business that matters. Yours. of the local transportation and logistics industry. Its mission is to establish state-of-the-art know- how in logistics in Namibia with regards to research, education and practice. Many Namibians have been For more information about our new generation trained in the art of logistics at trucks and services, please visit scania.com. this institute, and have started businesses to become active participants in the sector. Advert.indd 1 2021/01/29 15:26 Thursday, 25 February 2021 Spotlight on Transport & Logistics 9

Photos: Contributed FUEL … Unitrans doing bunkering at the Walvis Bay harbour. MAINSTAY ... The company has a staff complement of 158 people and a fleet of 71 trucks, tractors, fuel tankers, side tippers, loaders and a bulldozer. UNITRANS Keeps the Wheels of Economy Turning

• ADAM HARTMAN the payload and doing things his hazardous chemicals and safer. defensive driving certificates. ITH operations that For this, Unitrans Namibia Henning admitted that in cover fuel transport, invested in performance-based the past year with Covid-19, Wvessel bunkering, standard (PBS) technology, and the company has been much terminal and weighbridge according to Henning, Unitrans is challenged and was forced to management, general freight the first transporter in Namibia make a lot of changes to ensure and mining, drilling and blasting, to be PBS approved. PBS is an staff stay safe, and that no jobs road maintenance, customising alternative regulatory system for are lost. He said that while and standardising performance- heavy vehicles. Unitrans and its customers are based trains and return haulers, “It replaces prescriptive limits essential services, the company and stock management (using with performance limits and still operated – but with the drones), it is no wonder Unitrans promotes safety, innovation and limited movement in Namibia Namibia plays a major role in efficiency, therefore creating a and schools closed, less fuel was keeping the country’s economic better match between vehicle used. This affected the company wheels turning. loads and road infrastructure,” as the demand was low. To support these services, explained Henning. “So by going “One of the biggest challenges the company maintains key PBS, we are able to increase our during the epidemic is to keep the equipment and experienced payload, reduce the fleet on the staff focused as there is so many personnel, according to Unitrans road, reduce road wear, increase distractions and more rules, and Namibia general manager Phil the safety of the vehicles and so therefore it is easy to lose focus Henning. Unitrans Namibia has increase rollover threshold of on the basics that still need to been in operation since 1997 current fleet. That is the type of be adhered to. That is why we and is a subsidiary of Unitrans innovation our customers look keep on engaging our staff on a Africa (Pty) Ltd, which forms for and what we want to deliver.” daily basis to make sure we are part of group holding company, Henning said that the all still focused on making sure KAP International Limited (listed company also prides itself in we know what is expected from on the Johannesburg Stock the continuous training and us,” said Henning. Exchange). development of staff, and so Henning is positive about The national headquarters have the necessary qualified the future, and the company is is based at Walvis Bay, and and experienced personnel to making it a priority to stay close there are depot facilities in carry out the required operations to existing customers and add Windhoek, and at Tsumeb and successfully in the transport, new customers, as well as invest Ondangwa. The company has handling and distribution arenas. in their staff and communities as a staff complement of 158 As with any transporter, safety these are “the backbone of our people and a fleet of 71 trucks, is key, and Unitrans goes the business and future success”. tractors, fuel tankers, side extra mile to make sure they are “Relationships are key and tippers, loaders and a bulldozer. compliant. They even have an our customers are always under To enhance its efficiency and onsite training facility with two pressure to stay ahead of their capacity, the company embarked accredited driver trainers who competition and we need to be on a project that requires a are involved from the interview close to them to give them that reduction to its fleet, increasing process till the driver gets added advantage.”

STAYING FOCUSED … Unitrans headquarters at Walvis Bay.

FTW3590SD 10 Spotlight on Tran sport & Logi stics Thursday, 25 February 2021 Development Bank Stands Behind Transport and Logistics Sector ... Calls for enterprises to develop financial roadmaps for the future

HE transport and vaccine rollout. The second is financing measures, which lockdowns, however, it is vital to logistics sector to grow apace with the growth have included repayment preserve capacity to ensure the Tcan benefit from of economic activity driven by holidays for SMEs, and that current movement of goods as Development Bank of Namibia the African Continent Free now extend to the Covid-19 well as for the future. (DBN) finance in two phases, Trade Area (AFCFTA). business relief loans. The Mutumba urges existing says Jerome Mutumba, the Talking about the Bank’s business relief loans provide transport and logistics executive responsible for first phase interest in the three or six months operating enterprises to make use of the marketing and corporate sector, Mutumba says the capital, depending on the recently launched Covid-19 communication. The first Bank is currently prioritising need of borrowers. business relief loan to address phase is to weather the preservation of the existing The sector, he says, has operating challenges, where Covid-19 pandemic until the sector through Covid-19 been severely affected by necessary. Jerome Mutumba Talking about start-ups, Mutumba says although in some instances the current economic environment could appear as an uphill battle for potential Build a roadmap for your transport and logistics enterprise new enterprises, the Bank will consider applications from new with Development Bank finance. enterprises with sound business cases. Looking beyond the vaccine rollout, Mutumba points to the beacon of AfCFTA, which, he says, will incrementally enhance demand for transport and logistics as Namibian enterprises begin to take advantage of enhanced opportunities for production and efficiency. This, he says, will be driven by demand for Namibian goods, as well as reduced trade costs, particularly in the sub- Saharan Africa (SSA) region, but potentially further afield. Although fleet immediately springs to mind in connection with future trade opportunities, Mutumba urges enterprises in the sector to consolidate and strengthen capacity with fixed assets such as cold storage and freight consolidation facilities. The positioning of Namibia as a transport hub in the SSA region, and ongoing policy development and implementation justify the development of fixed assets with a long-term view. In terms of transport operations, Mutumba adds that We are specialists in finance Product Purpose the bank supports contracted for transport and logistics. arrangements with contract- 1 Asset-Backed Finance To acquire movable asset(s) for Our capability and experience extends from (ISA) a business based finance as well as performance guarantees. Bridging Finance To satisfy short-term cash-flow finance for fleet and operating equipment 2 Talking about participation needs of a business to carry out a to finance for property and plant, as well as and inclusiveness in the sector, certain activity privately owned infrastructure. he says the Bank can also 3 Business Finance To satisfy medium to long-term provide finance for management We also finance Namibian-domiciled enterprise financial needs buy-ins. Mutumba notes that joint ventures between Namibian and management buy-ins are a 4 Commercial Property For acquisition or construction international partners. Finance of immovable commercial means to both strengthen the property or making capital base of the enterprise as The transport and logistics sector trusts improvements to fixed well as provide new capacity for us to provide the right range of financing commercial property the enterprise. products, and to structure financing deals Buy-in capacity, Mutumba says, 5 Project Finance For privately owned suited to individual enterprise needs. infrastructure projects may also strengthen the fortunes of interdependent organisations. Contract (Tender) To meet short-term cash flow If you have a plan to get the goods moving, 6 He uses the example of an Based Finance needs of a business, where there find out how our finance can help you enterprise producing, retailing is an underlying contract to or wholesaling goods buying to succeed. carry out a certain activity into a transport and logistics Call us to find out more. 7 Business Acquisition For buy-ins (acquisition of enterprise. The producing Finance interest by external managers) enterprise can secure its +264 61 290 8000. or buy-outs (acquisition of transport and logistics needs Or visit www.dbn.com.na/transport interest by existing internal through this diversification of its managers) We’re waiting to hear from you. interests while also benefiting from additional operations of the transport and logistics enterprise, while the transport and logistics enterprise can secure itself and expand with the additional capital. The Bank, Mutumba concludes, stands firmly behind the transport Expect more. and logistics sector. He calls on enterprises to approach DBN www.dbn.com.na/transport to begin developing a financial roadmap for their futures. Thursday, 25 February 2021 Spotlight on Transport & Logistics 11 Pandemic cannot stop Namport • ADAM HARTMAN ports – such as Walvis Bay. control and capabilities largest portion of growth by SADC. With Namibia at the traffic. According to Pesat, Figures presented to the by handling 5 066 203 increasing activity, recording very strategic location that during 2019/20, 18 passenger HE Namibian Ports newspaper showed that the tonnes of cargo during the a total of 360 000 tonnes of it is, the country is given liners docked at Walvis Authority (Namport) total container throughput financial period 2020/21 cargo per annum. a favourable advantage to Bay and eight at Lüderitz. Tcontinues being capacity overall increased by compared to 4 346 153 Namport has seen a be a connecting point to This success of frequent relevant despite the 10% at Lüderitz and Walvis tonnes the year before. decrease in Roll on-Roll off neighbouring land-locked passenger liners during the Covid-19 pandemic, as it bay – to 135 194 containers This shows an increase of (RoRo) car carrier vessels countries such as Zambia, high season between January achieved another milestone in 2020/21 (during the first nearly 17% in cargo handling, in 2020/21 compared to the Zimbabwe, Botswana and and April at Namibian ports last month when it handled 10 months of the financial and according to Pesat, previous year. DRC who make frequent use was due to the upgrading of 20 000 tonnes of sulphur for year) compared to 128 779 this was due to increased “The presence of these of the seamless offerings of infrastructure facilities and the Zambian market. handled the year before. commodities being imported vessels indicates that the Namport,” said Pesat. therefore attracted bigger The bagging operation The two ports also and exported. market for second-hand Covid-19 had a major passenger liners to both took place at the harbour maintained operational Lüderitz has reflected the vehicles is still favourable in impact on passenger liner ports. as a joint operation by Namport and Manica Group Namibia. The operation required offloading to take place while the vessel was alongside with the sulphur being fed into hoppers and then bagged daily. The commodity was transported in trucks, which would carry a return load of copper from Zambia to the port to reduce freight costs and optimise the economies of scale. The copper will be exported to China, Germany, and Russia, among others. Namport’s commercial executive Immanuel !Hanabeb said these activities affirm the strategic positioning of Namport as a connecting port not only for landlocked countries in Africa but also for countries beyond the continent.“The volume growth is expected to be supported by the additional sulphur imports in bulk of 130 000 tonnes per year allocated for the copper mines in Zambia and Democratic Republic of Congo. This will provide return loads of copper from Zambia and DRC that will further increase copper exports from 18 000 tonnes to 40 000 tonnes per month,” he said. One of the big challenges though, !Hanabeb said, is the shortage of empty containers. “For the 2020/21 year, the shipping market is experiencing shortage of empty containers globally and southern African ports have not been spared. This has hamstrung exports and imports. We are working with all relevant stakeholders to improve the supply of containers,” he said. Regardless of the pandemic, Namport remained operational while staff adhered to Covid-19 health protocols. Namport communications manager Tana Pesat told The Namibian that Covid ironically was a blessing in disguise for Namport as competitor ports (especially in South Africa) were forced to close temporarily due to a rise in infections among their workforce and ships N R S C which were set to dock were forced to use alternative 12 Spotlight on Transport & Logistics Thursday, 25 February 2021 WEATHERMEN & CO WEATHERMEN

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