YOUNG INTERNATIONAL FREIGHT FORWARDER AWARD OF THE YEAR 2019
Sponsored by the TT Club and FIATA
TOPIC: Hinterland Complexities and challenges for exportation and importation through land linked country :Case of Zimbabwe
Packard
4/30/2019
Table of Contents TOPIC: Hinterland Complexities and challenges for exportation and importation through land linked country :Case of Zimbabwe ...... 0 List of Acronyms ...... 4 Introduction and Summary ...... 5 Acknowledgements ...... 6 Dissertation Part A ...... 6 Identifying Business Opportunities ...... 7 Gathering Relevant Information ...... 8 Cargo Description...... 9 Exportation Requirements and Regulations ...... 10 Live Capturing and Selection of Elephants ...... 10 Challenges Faced in Health Vaccination Certificate ...... 11 Elephant Replacements ...... 12 DNA Collection and Security Microchip Insertion ...... 13 Selection of Mode of Transport ...... 14 Air-freight Coordination ...... 14 Export Customs Clearance ...... 15 Transport Mode Consideration from Hwange to Harare ...... 16 Designated Route...... 17 Rail Loading and Transportation to Harare ...... 18 Based on above costs, changing to road transport was feasible and affordable in order to meet exhibition and reduce possible risks that may befall the cargo...... 19 Contracting Road Transporter ...... 19 Insurance ...... 20 Exclusion of Forwarders Liability under GIT ...... 20 Warranties of GIT Policy ...... 20 Hwange to Harare Transportation ...... 21 Construction of Unit Load Devices (ULD ...... 22 Freight Calculation, Payment and Issue of Airway bill (AWB) ...... 22 Customs clearance Acquittal and Zimparks Physical Examination ...... 22 Escorting Team Costs and Clearance ...... 23 Unit Load Devices Loading and Departure to China ...... 23 Flight from Paris Charles De Gaulle Airport via Netherlands to China, Shanghai Park ...... 23
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Delivery at Shanghai Wild Park ...... 24 Project Costing ...... 24 Conclusion ...... 24 Dissertation Part B ...... 25 Background of Business Opportunity ...... 25 Cargo Description...... 26 Cargo Sensitivity...... 27 Main Carrier Mode of Transportation from Germany ...... 27 Country of Destination Pre- Considerations ...... 28 Rebate Application Procedure ...... 28 Road Survey Application ...... 30 Sailing to Ports of Discharge ...... 31 Designated Routes...... 31 Pre –Arrival Consideration ...... 32 Supplier Contacted BTL Germany for Category 3 Shipment ...... 32 Customs clearance and Transportation to Hwange ...... 33 Discharge of Category 2 and Customs Clearance ...... 34 Containers Inspection after Cyclone ...... 35 Rail Loading and Space Allocation ...... 35 Customs Declaration and Transfer of Cargo to NRZ ...... 36 Arrival and Customs Clearance at Manica Depot ...... 36 Richards Bay Port Category 1 Shipment Discharge ...... 37 Road Transportation to Zimbabwe ...... 37 Convoy Procedure ...... 38 Abnormal Road Transport Requirements and Markings ...... 38 Abnormal Cargo Marking ...... 39 Abnormal Vehicle Permits Application in South Africa ...... 39 GIT Insurance ...... 40 Application of Abnormal Cargo Permit and Escort in Zimbabwe ...... 40 Customs Pre-clearance Procedure and Abnormal Trucks Arrival ...... 40 Delivery of cargo to Hwange ...... 42 Final Customs clearance and Assembling of Excavator ...... 42 Project Costing ...... 43
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Conclusion ...... 43 Bibliography & Reference ...... 43 APPENDICES ...... 45 Export of Elephants Appendices ...... 46 Appendix A : ...... 46 Appendix B: ...... 46 Apendix C ...... 46 Appendix D ...... 47 Appendix E ...... 47 Appendix F ...... 48 Appendix G ...... 0 Import Appendices ...... 2 Appendices I ...... 2 Appendix J ...... 3 Appendix K: ...... 4 Appendix L: ...... 5 Appendix M ...... 6 Appendix N ...... 7
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List of Acronyms
Abbreviation Meaning
ETA Expected date of Arrival
GIT Goods in Transit
H.S Code Harmonized System Code
HC High Cube
RBZ Reserve Bank Of Zimbabwe
USD United States Dollars
SARS South African Revenue Services
ZIMRA Zimbabwe Revenue Authority
ASYCUDA Automated System for Customs Data
VID Vehicle Inspection Department
CD 1 Customs Declaration 1
Incoterms International Commercial Terms
CNWPA China National Wildlife Parks Authority
POL Port of Loading
POD Port Of Discharge
NRZ National Railways of Zimbabwe
CITES Convection of International Trade and Endangered Species BTL Bollore Transport and Logistics
ZNSPCA Zimbabwe Society for the Prevention of
Cruelity to Animals
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Introduction and Summary
‘’You won’t find it difficult to prove that battles ,campaigns and even wars have been won or lost primarily because of logistics’’-General Dwight D.Eisenhower ‘. In the context of General Dwight the assertion has remained a reality in the freight forwarding sector with intense global competition which require strategic logistics planning and execution to be a market winner. A successful strategic planning and execution leads to good reputation and gain in market share while opposite is true.
In this project, I described the exportation of elephants to China, Shanghai Wild national
Park for exhibition in China. Zimbabwe being one of the top exporters of wildlife for Zoos purposes, exported 12 elephants to China with drive to depopulate and raising funding for sustainability of remaining elephants. Different challenges and complexities were faced during the voyage though proactive and costed decisions were initiated to avoid any hindrance of delivering cargo on time .
From exportation of great giants in the jungle to importation of first ever great giant in the mining sector of Zimbabwe ,Bucket wheel excavator Compact SRs 1400.23/2,0 model
.The import product had abnormal load challenges due to out of gauge and dimensions though with proper planning the project was a success in Zimbabwe by different mode of transportation.
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Acknowledgements
I would like to express my appreciation and thank to SFAAZ for entrusting me to represent
Zimbabwe in the YIFFA 2019.Thanks to my employer, Bollore Transport and Logistics for allowing me to use the company name in the project. I appreciate the support given from the below despite their busy schedules to ensure that the project was success;
Mr Musariri CEO SFAAZ
Florence Chirwa
Mr Jason Scully Country Director-Bollore Transport and Logistics Zimbabwe
Mrs Fawiza Mutata –Pacific International Lines Zimbabwe Agency Coordinator
Dr Tapiwa Mukwashi
Many thanks to my supervisor Lorraine Zhou and Mr Nyambudu for their continued support and contribution to the body of knowledge. Finally ,I would like to thank my parents ,family and friends for their continued support during this period of the project .
Dissertation Part A
Zimbabwe Export:Voyage of 12 African Bush Elephants (Loxodonta Africana) from
Hwange Game Park to China Parks
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Identifying Business Opportunities
Zimbabwe has a huge population of wild elephants in its wildlife parks such as Hwange and Gonarezhou National Park. Hwange National Park has carrying capacity of 45000 against ecological carrying capacity of 15000 whilst Gonarezhou National Park has an overpopulation of more than 11000 against ecological carrying capacity of 5000
(Zimparks Conservation Services,2017).Elephants population in the two parks is a threat to wildlife ecosystem given environmental needs to sustain them with food and water.
According to Zimparks Report 2013, after realizing that wildlife parks could not sustain the animals a decision to export elephants was reached. Exportation objective was to reduce elephant population and to raise funds to sustain remaining wildlife. To achieve these goals, Zimparks entered into contract of sale agreement with China National
Wildlife and Parks Authority on Ex-works-Hwange National Wildlife, Zimbabwe
(Incoterms, 2010).
CNWPA entered into contract of sale with Zimparks after confirmation that Zimbabwe falls under CITES (Convention Trade of Endangered Species) Appendix II which authorizes exportation of endangered species while not endangering their existence. Elephants were to be captured and quarantined at Hwange until transportation to intended airport of departure.
CNWPA approached Bollore Transport and logistics Zimbabwe (BTL ZIM) for exportation services including customs clearance and transportation. BTL Zimbabwe appointed me to handle the project from source exporting country to destination. Project involved exportation of elephants with multimodal transportation from Hwange to China (POD)
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Cargo Sensitivity
Elephant’s exportation was sensitive since animals were being required for exhibition in
China on the 31st December 2018.Below were client expectations after contract of sale in
November;
Expected date of departure 17th December 2018
21quarantined before exportation to China
ETA China 23December 2018
Exhibition dates 31December – 2 January 2019
Gathering Relevant Information
Zimbabwe is rated third in terms of exportation of elephants for circuses and zoos due to its high population in the game parks (CITES Database, 1990-2015 report). As appointed freight forwarder, I had to gather crucial information from importing, transiting and exporting countries.
Importing Country Pre-considerations
Delegation of inspectors consisted of Head of Zimparks, Hwange National Park Ecologist and ZNSPCA Chief Inspector travelled to China to inspect the Shanghai Wild Animal
Park. After inspection, inspectors certified Shanghai Wildlife Park as it met CITES standards compliance to Resolution Conf.11.20 (Rev.CoP17).
China importation Rules and Regulation Requirements
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China requires below before importation of wild animals;
1. Quarantine Authority certificate
2. Verification that elephants are not from a country infected with foot and mouth disease.
China Animal Quarantine Authority sent inspectors to Zimbabwe to verify epidemiology, animal diseases, assessing the quarantine methods and prevention measures for diseases.
3. Importing license issued to exporting country
4. Pre-export Quarantine detention dates before voyage of animals
5. Transportation should be pursuant to Terrestrial Animal Health Code of OIE and regulations of IATA, Articles 7.4.1 -7.4.11 (2018)
Cargo Description
Elephants were aged between 2-4 years weighing 185kg-450kg on average and would be shipped and crated as per their weights. Elephants will be vaccined against diseases and issued with Health vaccination certificate from Veterinary Department. Containers for live animals were as per IATA live animal transportation requirements (IATA Live animal manual, 2018). Wooden plains used on containers where fumigated to meet the international requirements for wood fumigation against diseases (ISPM 15 requirement).
Each elephant will be in its container for easy transportation, feeding, monitoring and free movement of the animal in the container. The dimension of the elephants will depend on the size of the elephants. The dimensions will be as per Appendix A for 12 elephants
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Exportation Requirements and Regulations
After selection of Shanghai Wild Park, China Quarantine delegation came to Zimbabwe assessed the quarantine methods and preventive measures for diseases, which
Zimbabwe was compliant certified.
Export Permit Application
Elephants are a complex exportation that requires a lot of documentation. In applying for the export permit I faced a lot of red tape from Zimparks, department of conservation, which controls the exportation of wildlife to help curb extinction of species and anti-cruelty of animals (CITES regulations, Appendix II). I provided the below documents to the
Zimparks Authority and the stipulated processing time for permit was 10 working days;
Importing Country Permit
Quarantine Certificate
Commercial invoice
Export permit issuance was after continuous follow-ups with Ministry of Environment and payment of 2% of total invoice value in USD. Payment was required in USD due to currency risk in Zimbabwe.
Live Capturing and Selection of Elephants
I secured export permit and contacted China Zoos and Zimparks specialist for the selection of elephants for exportation. Separating the elephants from the rest of the heard was quite difficult as some elephants were violent and it took three days to complete the process. Monetary value of USD$975000 was reached for selected 12 elephants.
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I then applied for CD1 from the Reserve Bank of Zimbabwe (RBZ), by submitting the commercial invoice and export permit.CD 1 is an exchange control document to control and ensure that companies are not externalising funds. This application process was seamless, as client had no any outstanding acquittals with RBZ from previous shipments.
The next application was the CITES permit from Zimparks, which is a member of the
CITES international board. The permit was issued after verification that exportation of the elephants was neither for illegal use nor killings. CITES regulates international commercial and non-commercial movement of endangered species. The below documents were submitted for CITES approval;
Export license
Commercial Invoice
Animal description
CD 1 form
I faced many difficulties in the application, as vast verification was required. However, I managed to comply with all their requirements and permit was issued on time.
The Animal Health Vaccination Certificate (HVC) was the last certification that I applied for through the office of the Director of Veterinary Services in Zimbabwe. The appointed veterinary doctor assessed and vaccined selected elephants against diseases as per international vaccination requirement.
Challenges Faced in Health Vaccination Certificate
Challenge Remedy
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booking for Veterinary Doctor Applied well in advance after selection
accredited by Zimparks took time to of elephants to be exported
be scheduled
Waiting for confirmation of the Health Constant follow up with the offices
Certificate which took 5 working days
Ten out of twelve elephants were free from diseases and fit for export. Two elephants failed to meet required health standards for exportation, so I had to consider the following:
1. HVC issuance for only ten elephants and short-ship to China pending two
remaining elephants.
2. Or replace the two elephants with healthy ones and ship all twelve at once.
I contacted client and recommended option two considering sensitivity of the cargo to meet the exhibition dates. I also considered costs involved and time for amendment of documents before short shipping ten elephants was almost equal to waiting for replacement of elephants. Short shipping proved to have high transportation costs compared to one voyage negotiated based on TACT rates. The other challenge was of finding next connecting cargo plane to China to meet the exhibition time.
Elephant Replacements
I had to coordinate with CNWPA and Zimparks experts for re-selection of two elephants that failed to meet exportation health standards. Director General issued replacement approval at a fee of USD2500.00 per elephant. Captured elephants were vaccined and monetary value determined. Replacement process took three days instead of two days
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due to heavy rains. After assessments, all elephants were certified fit for exportation.
Health Vaccination Certificate issuance was after below amendments which were challenging;
Export permit and CITES required 2% top up for issuance from new invoice value.
This was a challenge due to exchange rate risk in Zimbabwe.
CD 1 form amendment of the initial value from $975000 to $1 150 000
Health Vaccination certificates to be re-issued
Amended documents issuance was within seven working days.
DNA Collection and Security Microchip Insertion
Selected elephants were quarantined for 21 days pending exportation at Hwange
Quarantine area. During this period elephants got injected with anesthetic to;
Facilitate DNA blood samples collection.
Microchips Insertion for telematics tracking and identification purposes as per
inserted microchips.
After procedures, Veterinary doctor observed that three elephants were weak from drug dosage. As per Terrestrial Animal Health Code OIE (2018), Article 7.4.7, animals in such a condition may not be conveyed until stabilized. We had to wait for 2 days before we could transport and no delay was incurred.
DNA samples were sent to Harare Zimparks Headquarters laboratories for processing.
Processing results took time as centralized laboratories in Harare carried out all the tests in the country. I followed through with Zimparks regarding results for DNA record and certificate issuance was on time.
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Selection of Mode of Transport
Zimbabwe being a landlocked country, I considered sea and air transportation to China.
Ocean freight transportation was cheap though it had risk of long transit times, at most
43 days on water, which would expose elephants to extreme weather changes and high levels of stress. Therefore, I recommended airfreight transportation for having shorter transit times and reputation of IATA live animals transportation standards, although costs would be higher.
Air-freight Coordination
I requested quotations from three cargo airlines. Fly Emirates could not offer services due their internal suspension on trophies and endangered species transportation in fight against high levels poaching. KLM-MartinAir confirmed capacity to airlift all elephants to
China in one voyage and final South Africa Airways offered below options;
Chartering plane quotation or short shipping elephants in batches.
Both SA Airways options were expensive and probability of failure to meet ETA dates was high. KLM-MartinAir was more suitable and affordable option though challenge was with their loading schedule of Monday and Thursday only per week. Strategic logistics planning was key for project success.
R.G. Mugabe International Airport was the departure airport of choice for having appropriate handling equipment and sufficient loading allotments.
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Flight Designated Planned Route
KML MartinAir Boeing 747-400 Combi with a capacity of 45 tonnes with seven maindecks will be as per below;
POL Airport Transit 1 Transit 2(FR) Transit 3(CN) POD(CN)
(ZW) (ZA)
R.G Mugabe O.R Charles Guangzhou Shanghai
Int.ZW Tambo,ZA DeGaulle,Paris Bayiun,CN Pudong Int
Transit Permits Applications
South Africa and France transit permits were applied based on designated route to China.
Certified copies of CITES and health vaccination certificate were sent to respective countries for transiting permits issuance.
Export Customs Clearance
I lodged export custom bill of entry in Hwange, which was assessed by Zimra after deduction of customs fees of USD$10.00 per bill of entry pending acquittal at Harare, R.G
Mugabe international Airport. The commodity code for declaration was (HS Code)
01069000.Below documents where attached in the Zimra Asycuda system:
Invoice CITES Certificate of Importing Country
Fumigation Permit
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CD 1 Tax Clearance Health Vaccination Airway bill
Certificate
Export Road Consignment Rail Notes Voucher of Correction
permit Note
I faced below challenges during customs clearance procedure;
Internet connectivity problem so had to use modem for connection
I forwarded assessed documents to our Harare Clearing department for acquittal while transporter received copies for road clearance.
Transport Mode Consideration from Hwange to Harare
I had to take into account moving 12 live elephants from Hwange to Harare within ten days for exportation to China at the minimum transport cost using most efficient and suitable transport mode between rail and road. Below are the considered factors:
Consideration (KPI) Road transport Rail Transport
Cost USD12 600.00 USD8050.00
Transit Time 36hrs 72hrs
Zimparks Guider Costs USD2450.00 for 6 guides USD1850.00 for 4 guides
Food and Watering USD1800.00 USD2200.00
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Condition trucks Three days for disinfection Immediate
/wagons and disinfestation
Capacity Availability On turnaround of obtaining Immediate
ventilated containers
Security Available Available
Based on above, I opted rail transport which was less costly and with less impact on elephants stress levels cause of enough resting space. NRZ disinfested booked 12 wagons for elephants transportation. The loading and dispatch date from Hwange was on 6th December 2018 within planned 10days before ETD to China.
Designated Route
NRZ provided below designated route to Harare as below;
Departure 1St Transit 2nd Transit 3rd Transit Place of
Place Delivery
Hwange Park Bulawayo Gweru Kwekwe Harare
National railways Of Zimbabwe (NRZ) requires conformity to below for transportation,
Elephants feeding and watering
Prescribed transportation documents i.e permits/licenses
Waste disposal as per EMA Act requirement for disposal only at approved places
Police and Zimparks clearance letter
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Before loading, I ensured that risks such as death, dehydration and stress to elephants were to be avoided. I arranged to curb such by having them treated during transit, feeding requirements and experts being available on board for regular checks.
Rail Loading and Transportation to Harare
Elephants were loaded on the 6th December 2018 and departed for Harare. After 248km travel by cargo train, NRZ communicated of derailment of a passenger train between
Bulawayo and Lupane and on the area, there were no rail sidings. The cargo train with elephants was unable to pass through derailment area .NRZ required minimum 8 days to clear the railway line.
The situation became critical required revaluation to meet scheduled flight and maintaining the health of the animals.
The available options were;
1. Backhaul of cargo to Hwange and arrange alternative mode of transportation to
Harare.
2. Backhaul to Hwange and wait until derailment is rectified.
Considerations Rail Transport Road Transport
Transit Time Target 15 days delay for waiting 4-6 days earlier prior to
for rail rectification schedule flight
Cost of Waiting USD9500 incl. food USD2800.00 food in transit
Labor for Guides USD12500.00 for 8 days USD3585.00 up to shipping
including 4 days of waiting on board
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Transport Cost USD8050.00 USD12600.00 incl Ventilated
container hire
Toll fees Nil USD480.00
Total Costs USD30050.00 USD19465.00
Based on above costs, changing to road transport was feasible and affordable in order to meet exhibition and reduce possible risks that may befall the cargo.
Contracting Road Transporter
Due to urgency of the situation, there was no time to do proper transporter selection. I opted to contract EnoSeth logistics based on previous performance with our deliveries.
EnoSeth Logistics was now transporting elephants to Harare. My previous experience assured me of delivery on time. The company met the following criteria;
Route operations Permit
Valid vehicle fleet insurance, vehicle licenses and permits
Current certificate of fitness from VID
24hr satellite tracking
EnoSeth Logistics provided six 30tons trucks, ventilated containers on low bed triaxle for elephants’ transportation. The elephants were loaded two per triaxle trailer to maintain optimum weight and have space to rest. Disinfection of containers was done. Transporter had a cooling water system for animals to cool down during transit to Harare.
Trucks moved in a convoy of three trucks with 2 guides plus veterinary doctor for each convoy. Trucks were released in the loading order and drivers procedures were as per below;
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No night driving
Only authorized stops for feeding ,watering and resting will be allowed
No parking in areas with loud and uncomfortable environments to avoid stress to
the animals
Insurance
Elephants require live animals insurance cargo insurance policy that covers the loss, sickness or death of animals insured by an accident, disease or misfortune whilst animals are being loaded upon, carried or unloaded from conveyance specified during transit.
Animals in transit insurance is calculated as per below;
1. From Hwange to Harare- Premium 3.5% of the total consignment value.
2. Airfreight Insurance-Premium rate 15% of the FOB value.
3. Transporter had animal in transit insurance of total consignment value.
Exclusion of Forwarders Liability under GIT
Death of Animals during voyage
Consequential death, or diseases on animals
Unexplainable losses
Waiver of subrogation rights
Warranties of GIT Policy
Full voluntary disclosure on the health status and condition of the animals.
Designated route to be used.
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Elephants were not to be left unattended and unsecured.
drivers should have two years’ experience of transporting live animals.
Hwange to Harare Transportation
Elephants were loaded into ventilated containers on triaxle trailers and twist locked onto the trailer hinges for stability. Chains and locks were used for security to prevent possible escape. Feeding and waste removal was after every 4hour interval at designated stops as per below;
Place of 1st 2nd 3rd Final Delivery
Loading
Hwange Bulawayo Gweru Kwekwe Harare
Derailment caused delay in failure to meet projected six days prior to scheduled flight date. Elephants were later delivered 4days prior to departure date 17th December 2018.I resolved this through proactive contracting of road transport.
During the voyage, one truck in the second convoy developed mechanical fault 212.5km from Harare in Kwekwe. This would cause another delay in delivery of two elephants and would increase stress levels. I authorized other two trucks in the convoy to proceed to curb further delays. Transporter advised that breakdown would take two days to fix so i opted to secure replacement. The replacement truck arrived after 4 hours and only departed after a further three hours due to loading logistics. The five trucks arrived on
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schedule at Bak Storage holding animals holding bays but last truck only arrived in the next day morning, as it could not travel during the night.
Construction of Unit Load Devices (ULD)
Refer to IATA principle for construction of ULDs (Appendix).ULDs were constructed with fumigated wood, which had obtained fumigation certificates and was secured with steel straps for strength with 20% ventilation for air circulation. ULDs for three elephants did not fit their sizes and had to be reconstructed which caused slight delay to the schedule.
The elephants were put into their respective ULDs awaiting dispatch to AGS (Aviation
Ground Services) for export.
Freight Calculation, Payment and Issue of Airway bill (AWB)
After obtaining cargo dimensions, airline calculated the total chargeable freight of
USD25650.00.The calculation of the freight was based on the volumetric. I submitted dimensions in agreement with airline representative. TACT rates were applied since BTL
Zimbabwe is registered with IATA. Agreed freight amount of USD25 650.00 was settled.
Airway bill was issued and AWB was shipped along with cargo.
Customs clearance Acquittal and Zimparks Physical Examination
Documents were submitted for acquittal, and physical examination was issued on F45s.i carried out Zimra and Zimparks inspections and entry was released on F21A.
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Escorting Team Costs and Clearance
Seven personnel being four Zimparks guides, two veterinary doctors and Chief Inspector from ZNSPCA were given diplomatic clearance into China accompanying cargo. The living and travelling costs and returning expenses for escorting team were incurred by
China .
Unit Load Devices Loading and Departure to China
ULD were loaded onto cargo plane and I ensured that animals were place 1metre away from radioactive products (yellow II) as Dangerous good panel (Part7.2.9.6.3) to avoid death or affection. I confirmed suitability positioning of the elephants before take-off with
Zimparks guides. KLM /Martin air Boeing 747-400 Combi departed R.G.Mugabe international Airport at 16:25pm for China, Shanghai Pudong International Airport.
Flight from Paris Charles De Gaulle Airport via Netherlands to China, Shanghai Park
During transit, I received communication from KML airline advising that KLM Boeing 747-
400 Combi had been re-scheduled via Netherlands Amsterdam Airport Schiphol then proceeds to final destination Shanghai Pu. The re-routing increased the transit time from
31hrs 51 mins to 45hr 5 mins. This prolonged voyage would cause them to be unstable and irritable. I opted for transfer of cargo to an alternative connecting plane. KLM-
MartinAir managed to link with Qatar cargo airline Boeing 747-300 to complete the voyage to China. Additional freight was charged and cargo arrived in Shanghai on 21 December
2018 two earlier than expected date 23rd December.
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Delivery at Shanghai Wild Park
I had made arrangements with BTL China to takeover once cargo arrived at the destination. They would handle customs clearance and transportation to Shanghai Wild
Park. Permits and licenses were sent to Bollore Logistics at Shanghai for customs clearance since AWB and invoices were sent along with the shipment .Elephants were transported and delivered safely to Shanghai Wild Parks.
After delivery of elephants, Zimparks officers were sent to the Zoo to confirm if living standards of the elephants had not changed as the last inspection.
Project Costing
Please refer to Appendix G.
Conclusion
Movement of live animals is a complex procedure, which requires a lot of attention to details, many documentation and verification processes especially moving from developing countries with poor outdated infrastructure. Complexities were covered and delivery of cargo was successful despite the challenges. After delivery of elephants,
Zimparks later visited China to verify conditions of the elephants.
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Dissertation Part B
Bucket wheel excavator importation from Germany to Hwange Zimbabwe.
Background of Business Opportunity
Zimbabwe’s demand for thermal electricity and coal exceeds supply and despite the extension of Kariba Hydro-power and Hwange Thermal stations electricity remains in short supply. This gap has resulted in scheduled load shedding and increases energy importation which is a cost to the economy. The Ministry of Energyand Power
Development,has decided to expand Hwange Thermal Power station which is facing is inadequate supply of coal, caused by obsolete excavators, to produce required thermal electricity.
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Hwange Coliery Coal has entered into a contract of sale with Tenova Takraf to import a bucket wheel excavator SRs 1400.23/2,0 (900kW) with 5200lm3/H capacity with a 8
500tonnes production capacity. Contract of Sale was agreed on Carriage and Insurance
Paid To (CIP) Hwange Zimbabwe, Incoterms 2010.
Tenova Takraf Company offered the project contract to Bollore Transport and Logistics
Germany (BTL Germany) due to its capability and reputation to handle abnormal cargo shipments. BTL Germany appointed BTL Zimbabwe to handle shipment once cargo had been shipped on board from Germany. BTL Zimbabwe later appointed me to handle multi- million dollar project.
As per CIP contract of sale, supplier was responsible for all export procedures and licences, CBCA certification, customs formalities and also the carriage, insurance and transport costs from supplier premises to Hwange . BTL Germany assisted with all procedures from exporting country Germany and transportation to port of loading to named carrier .Buyer had responsibility of payment as per agreed terms, unloading at
Hwange and customs clearance at Port of entry into Zimbabwe.
Cargo Description
Bucket Wheel excavator Max 5 200lm3/h Model SRs 1400.23/2,0 excluding belt wagon has a 27 meter boom on which 10.5 meter diameter bucket wheel is located. Bucket wheel is fitted with 17 buckets. The power output of bucket wheel alone, fitted with 17 buckets is 900 kilowatt and entire output of machine amounts to 3200 kilowatt.
Capacity 5 200m3/h
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Length and Height (32.5 m x 27m)
Weight Approximately 1250tons
Two crawlers wheels
Air-compressed gases UN1002
Dangerous Cargo: Class 5.1 Liquid flammable and Solid Flammable
Total Value of Cargo EURO16.5 million (FOB value)
Cargo Sensitivity
Assembling of machinery was scheduled for 1st June 2019 and expected date of arrival for cargo was 9th May 2019.Machinery was expected to supply first extraction output 1st
September 2019.As appointed forwarder, I had to properly plan and execute to meet deadlines.
Main Carrier Mode of Transportation from Germany
Bucket wheel excavator was dismantled as per three categories below for ease of transportation. (Dimensions refer to appendix I)
BTL Germany advised transportation mode as per below;
Category 1: Due to weights, out of gauge, heights and width of dismantled cargo had to be shipped on break bulk vessel
Category 2: Container vessel for containerized cargo
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Category 3: Spare parts and Drums of Oils transportation mode to be advised once order was in place.
Country of Destination Pre- Considerations
Rebate Application Procedure
Hwange Colliery Coal Mine enjoys rebates amnesty on Capital equipment for production through the Customs Excise Act 23:02 Section 71. I applied for the rebate through Ministry of Mines and was issued with import licence and national status letter. I applied to Ministry of Finance and Economic Development using national status letter and confirmation letter.Ministry of Finance issued confirmation letter to Zimra. Zimra issued the rebate on duty certificate. Below documents accompanied applications in respective Ministries;
Commercial Invoice
Packing List
Tax Clearance
Certificate of incorporation
I faced long lead times between applications and approvals and we had to consistently monitor and follow through on applications.
Finally the greenlight was issued to BTL Germany to load cargo.Oils from excavator dismantled parts and hydraulic parts were reduced to lowest level to avoid spillage which may cause water pollution endangering aqua life. Fuel tank was emptied as UN3082
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IMDG flammable liquids and UN1002 Air-compresses gases for air condition so to avoid explosions. Excavator batteries classified under UN3481 were containerized.
BTL Germany for Category 1contracted Pacific International Lines (PIL Shipping lines) for ocean transportation. PIL had affordable rates and proven transportation expertise record for project cargo. Vessel Kota Bahagia was only vessel calling Port Bremen within expected departure dates, which allowed meeting ETA dates.
Category 1
Cargo was shipped on Kota Bahagia (KBGI0027 E) ETA 14 March 2019. POD selected was Richards Bay Port. Actual date of Departure (ATD) was 6 February 2019.
Category 2:
Cargo was containerised in 5 X 40HC with Beira as port of Discharge , Mozambique.
Maersk received contract of carriage for having favorable rates inclusive POL and POD
Terminal handling charges. Containers were moved under merchant haulage CIP
Hwange for better control and monitoring. ATD 9 February 2019 and ETA was 8th March
2019
Category 3.Mode of transportation will be determined once supplier advises that cargo is ready for shipment.
Takraf Tenova IVA Schmetz Menden is located 234.6 from Port Bremen and 344.7km to
Hamburg Port.BTL Germany selected port of loading Port Bremen due to distance proximity, reduced costs and less transportation challenges for abnormal loads to POL.
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POL Bremen has morden equipment to handle break-bulk. Bremen cargo. Germany requires special heavy limit permit for more than 40tonnes, more than 4m height and travelling time was between 10:00pm-06:00am for special heavy lift transportation. This was a challenge which led to BTL Germany to apply for exemption through Directive
96/53/EC.
BTL inserted Link telematics to provide live update, actual location and cargo status.
Transportation modes had 24 hour tracking to ensure cargo is secure which also assist in visibility of cargo. Containerized cargo secured with shipping line and shipper seals for security.Cargo was laden in port for loading to ports of discharge.
Road Survey Application
I appointed BTL South Africa for road survey as per designated routes;
Transit Port 1st Transit 2nd Transit 3rd Transit FPOD
Richards Bay, Johannesburg, Beit-bridge, Bulawayo, ZW Hwange ,ZW
ZA ZA ZW
From Richards Bay, South Africa to Bulawayo, Zimbabwe, roads were in good condition.
Challenges were between Bulawayo and Hwange as below;
Trees were close to the road
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Vehicles could not pass through town of Lupane roundabout due to size.
Overhead electricity cables would disrupt movement of cargo in terms of height
I applied to Ministry of Transport for tree cutting approval and detour on roundabouts to avoid disruption of cargo movement. I received confirmation letter to proceed to apply to
Ministry of environment under EMA for approval to clear the road.Permit was granted under EMA Act 19:05 Section 56 allowing deforestation.
Sailing to Ports of Discharge
Designated Routes
Category 1;
POL Transhipment POD
Bremen,DE Singapore Richards Bay
Cargo was shipped on Kota Bangatit 0027 E to Richards Bay Port. The vessel faced
3days delay at transhipment port in Singapore. Two Takraf Engineers were on board to ensure proper handling and security of cargo. Vessel had a crane which handled cargo weight of more than 240 MT.
Category 2:
POL Transhipment 1 Transhipment 2 POD
Bremen Algeceria Mombasa,KE Beira,MZ
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Vessel was no longer calling transshipment port Algerias and calling port diverted to
Malaysia West Port Kelang due to affordable THL charges and reduced transit time.
Vessel was now calling MZBEW directly and vessel arrived earlier on the 7th March 2019 than expected 8th March.
Pre –Arrival Consideration
BTL Germany provided original bill of lading, commercial invoice, certificate of origin,
CBCA certificates, packing list and marine policy from respective shipping lines Maersk and PIL.
Supplier Contacted BTL Germany for Category 3 Shipment
BTL Germany received Category 3 confirmation being ready to be shipped. Ocean freight was no longer an option due to limited time. Air transport was opted for quick and fastest delivery to meet project dates in Zimbabwe. Cargo was shipped on CIP Hwange
Zimbabwe.
Below challenges were faced;
Space allotment shortage on Lufthansa from Leipzig-Halle Airport (LEJ).Short-
shipping cargo was only option due to limited cargo planes that accepted
dangerous oils. First short-shipment had 4 drums of oils UN 3012 weighing 4950kg
(276x258x 56cm per 4drums) shipped on 15th April 2019 and 2 Unit Loading
Device Spare parts (Main Deck 2235mm X 2286mm) shipped on 18th April.
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Cargo transiting airport was O.R Tambo SA to Zimbabwe. Sizes of planes to
Victoria Falls cargo was unable to fit due to dimensions and weight. Planes size
could only take maximum of 120 x 80x 80cm (approx. max pallet, 75kgs).
I considered options given SAAirways, Option 1 was to consolidate cargo at O.R
Tambo and ship through R.G Mugabe Airport or Option 2 to wait for SA planes
scheduled for 1st and 5th May 2019 at Joshua Nkomo Airport while short-shipping.
I opted for option 1 through R.G Mugabe Airport, airway bill POD changed to
Harare though incoterm remained CIP Hwange. Option allowed to meet set dates.
Duty Free certificate and import licenseswere in place.SA 0062 ATA was 26thApril
2019.
Customs clearance and Transportation to Hwange
Harare Clearing department completed customs clearance for release on 28 April 2019.
Oil and spared parts 27101980 and 84834000 respectively. Below documents were attached on registration of entry;
Airway bill of lading
Commercial invoice
packing list
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Duty free certificate
EMA permit and Import licences
I contracted Whelson Transport to deliver cargo and delivery is scheduled for 2 May
2019.
Discharge of Category 2 and Customs Clearance
BTL Beira handled port clearance and containers loading out of Beira. Port clearance was done 5 days prior to vessel arrival on 8 March 2019 and completed discharged on 9 March
2019.Shipping line release was obtained on Monday 11th March 2019.Trucks had been allocated and Port release yet to issued when containers were restricted to be gated out or in due to potential Cyclone Idai.
Containers were stacked in a pyramid form to avoid damage from effects cyclone. Caused landmark between 13-20 March 2019.Cyclone destroyed communication lines, electricity, bridges and roads in Mozambique making it a challenge for communication and accessibility.
Beira situation normalized on 23 March 2019 with no guarantee on communications restoration. During period of uncertainty, first option was to transship cargo to Maputo for transportation to Harare by road or rail. Maputo option was efficient and effective to meet deadline though very costly to adopt .The other challenge was no transport of cargo out of Beira had yet been approved.
Beira authorities restored all communications systems on 26 March 2019.Cornelder port confirmed operation commencement though cargo release was still restricted until final
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report from engineers. Roads were heavily impacted with destroyed bridges while rail system was considered fit for transportation. Considering cargo urgency, I booked with
CFM Mozambique railway for five containers. Challenge was to get priority on containers loading. I sent an e-mail requesting special transportation of the containers. Rail rates to hinterland increased cause of the demand for transportation. I noted that estimated road freight costs were higher than rail rates hence rail option was viable and cost effective.
Containers Inspection after Cyclone
Despite containers being pyramid stacked, inspection before departure was required. BTL
Beira appointed independent surveyor to determine damage or impact to cargo.
Challenge was that inspectors had high volume of containers to inspect though we managed to get earlier booking on 3rd April 2019.As per surveyor report no damage was found or flooding into containers.
Rail Loading and Space Allocation
I received a regret e-mail from CFM Rail of space allocation since allocation was on first in first out (FIFO).This made situation difficult as we had project delivery deadline.
Zimbabwe government imposed an exchange control act of SI 32 of 2019, 1st March
2019 that local currency was now USD$1:2.5 bond notes not at par with USD$(1:1). This caused rapid increase on customs duties which affected many clients since it was implemented immediate effect.
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I had another client with 12 containers that were scheduled for cargo train to Zimbabwe from Beira but due to SI 32 of 2019, client advised that customs duties were not in place.
Client advised holding to load containers and I advised BTL Beira replace the
12containers with the 5containers. Documentation was ready and cargo was railed on the
15th April 2019 to Zimbabwe.
Customs Declaration and Transfer of Cargo to NRZ
CFM Mozambique moved cargo to Machipanda border post by rail. Cargo wagons were exchanged at Machipanda border to NRZ 2073/19 into Zimbabwe. NRZ declared cargo at Machipanda and Zimra issued customs embargo to Harare Manica Depot.
Arrival and Customs Clearance at Manica Depot
Cargo arrived on 17th April 2019, BTL Harare obtained rail noted and registered bill of entry. HS classification rule 2 (a) of complete product in dismantled form was used for customs clearance under tariff 8429.5200.Rule 2(a) classification was a challenge with
Zimra which requested for separate invoice for containerized cargo. Zimbabwe. I noted that valuation method being used would make product expensive and I raised a query regarding raising a separate invoice on dismantled cargo. Zimra Station requested for documents which I provided to prove that machine was dismantled. Query process took
4 days and cargo was approved for extended embargo at Hwange Mine pending final clearance.
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Scheduled train for 23th April 2019 delayed for two days due to heavy rains that affected loading of chrome in Kwekwe for export on its way to Harare. I opted for road transportation but costs were higher compared to rail and to place trucks with immediate action was going to be a challenge. I opted for rail and Zimrasecured cargo with electronicalseals thatreports any attempt to divert route or break seal during transit. This was security measure to avoid smuggling or hijacking. Train left on 26th April 2019 and arrived on the 29th April 2019.
Richards Bay Port Category 1 Shipment Discharge
I appointed BTL South Africa to assist with port clearance, transit clearance and loading cargo to Zimbabwe. Documents were couriered to BTL South Africa for port clearance purposes 5 days prior to vessel arrival. BTL SA confirmed below to our office:
1. ATA date for vessel arrival 14th March 2019.
2. Arrangement of abnormal transporters since it was a challenge to source for as
Zimbabwean transporter who met required standards.
3. Supervise vessel discharge in coordination with Tenova Engineers.
Road Transportation to Zimbabwe
Zimbabwe being a landlocked country with no inland waterways only options was either by rail or road transport. Rail transport was not feasible considering dimensions of abnormal cargo to be moved. I opted road transportation to Hwange though 12 trucks were required as per below;
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2 blast abnormal trucks and 2 SPMT trailers
5 normal trucks and 5 flat triaxle trailers
5 abnormal trucks and 5 low-bed multiple axle
Contracted Concargo transporter was registered with SARS in compliance with South
African Road Traffic Act and Regulations.
Convoy Procedure
Trucks were to be moved in a convoy of four trucks with its own abnormal escort team.
Total abnormal trucks amounted to 12 meaning 4 in each convoy. Route permits were already obtained for Zimbabwe and South Africa. Police escort will be provided at Beit- bridge to Hwange due to the road nature in Zimbabwe. Cargo had designated resting points to allow flow of other motorists.
Abnormal Road Transport Requirements and Markings
Transporters were compliant to the SARS requirements with below requirements;
Valid licences and permits from SARS.
Service history of vehicles and certificate of fitness for curbing against breakdowns
to avoid delays.
Cargo should be secured with chains to avoid risk of damage and accidents.
Anti-theft telematics linked with Bollore Link tracking system and transporter 24
hours. tracking system were installed. Visibility of cargo was increased and to curb
against hi-jacking.
Drivers should possess valid driver’s licence with 5 years’ experience.
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Adherence to maximum travelling speed of 60km/h.
Abnormal Cargo Marking
Abnormal cargo utilise more than one lane of the road hence escort and marking to pre- warn other motorists to avoid accidents was required. According to South Africa and
Zimbabwe road traffic act regulations abnormal vehicles must adhere and fitted with below;
Flags 600mm*600mm front corner of each abnormal vehicle.
Front and rear abnormal warning board (2m wide and 300 high retro-reflective
letters on whiteboard).
Amber flashing light on top of vehicle.
Marker lamps and reflectors demarcating extremes.
Front and rear escort vehicles with amber flashing lights and warning signs at a
distance of 400m fitted with siren.(TRH 11,March 2000).
Abnormal Vehicle Permits Application in South Africa
In reference to Road Traffic Act 93 of 1996 abnormal vehicles could not be moved on public roads without abnormal permit. Bucket wheel crawlers and centre pivot of excavator could not be dismantled into units due to risk of damage, technicality required and time to be taken hence opted for transportation in same state. Abnormal movement
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was stipulated only between 6am to 6pm.Special permit was issued as per TRH 11 due to exceeding dimensions of cargo. I had to apply for permits through four different provinces of South Africa which had different embargoes.
GIT Insurance
Allocated transporter had a valid Goods In transit insurance to cover against losses and damages. Premium rate of 0.50 % of total consignment .Supplier had covered with contingency policy with 110% insurance until delivery.
Application of Abnormal Cargo Permit and Escort in Zimbabwe
Dimensions were issued to ZINARA (Zimbabwe National Road Administration) for issuance of permits as per Road Traffic Act (Chapter13:11) Act No.6 of 2002.Application fees were paid for issuance of permits though delay was with a day when Zinara requested images of the cargo to determine type of escort to be adopted. The delay did not affect movement as cargo was in transit to Beit-bridge border.
Customs Pre-clearance Procedure and Abnormal Trucks Arrival
BTL SA forwarded customs cleared documents from port through e-mail for pre-clearance purposes pending originals documents from drivers. Our Beit-bridge office pre-cleared cargo in line with SI 9 of 2018 –Pre-clearance of cargo to decongest ports of entries into
Zimbabwe. Failure to pre-clear cargo and truckscross to Zimbabwean transit shed without
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pre-clearance being processed would attract USD$400.00 per truck. I ensured that pre- clearance was processed on time.
Cargo was declared as a complete unit though in disassembled form as per
Nomenclature rule 2 (a) which states that “…. Article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.”
Cargo was cleared under HS code 8429.5200 classified as per rule 2 (a), as complete machinery with a 360 degrees revolving super structure. Challenges faced were customs clearance of dismantled cargo through different ports of entry.
Category 1 cargo was marked off at Beit-bridge border upon arrival pending final clearance at the Hwange Colliery Coal Mine. Agent had pre-cleared for cargo entering
ZWBB and all documents required were submitted as per below;
Import Licences
Abnormal load permits
EMA permits
rebate of duty
commercial invoice
Packing list
Material Safety Datasheet
Description of Dimensions Sheet
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Cargo was release for Hwange after issuance of extended embargo.Inspection by Zimra was to ascertain that cargo was dismantled. Zimra required all parts of excavator to be at the site before booking for inspection.
Delivery of cargo to Hwange
Category 1: I faced challenges of the overhead electricity cables in Hwange, which did not allow more than 2.5m of abnormal cargo to proceed. A pre-application for disconnection of cables on five areas affected in Hwange was processed in advance to
Zimbabwe Power Company. Power cables were disconnected on arrival to avoid cutting power before arrival of trucks. Cargo was delivered 9th April 2019.
Category 2: 5 x 40 HC containers (11724mm X2208mmX2597mm each container) were delivered at Hwange Colliery Coal Mine offloading site.
Category 3: Customs clearance was processed at R.G Mugabe Int Airport and cargo delivered by road to Hwange Colliery Mine.
Final Customs clearance and Assembling of Excavator
Engineers arrived at the site for technicality and Zimra officers from Bulawayo were acquittal and final release of cargo was declared as per rule 2(a) under 84295200.All
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cargo was on site before 9 May 2019.This allowed time to assess any damages on cargo before commencing with assembling 1st June 2019.
Project Costing
Please refer attached Appendix J,M and N.
Conclusion
Zimbabwe is a hinterland and land linked country with high total landing costs, which requires strategic freight forwarders to obtain value of money for clients while offering best services on affordable costs to their clients. This can be done only through proper planning and having appropriate information and network to enhance smooth movement of cargo.
Bibliography & Reference
Internet reference
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www.takraf.com:Compact Bucket Wheel Excavator SRs1400.2.3/2,0(990kw) https://www.chronicle.co.zw/nrzgoods train derails in Hwange www.chronicle.co.zw%2Fnrz-train-derails%2F- Passenger train derails 2013
U.S Fish & Wildlife services: http:fws,gov/international
Literature
IATA (2018).Live Animals Regulations, 44th Edition 2018, Montreal-Geneva International
Air Transport Association
Customs and Excise Act Chapter 23:02 Revised Edition 1996 :Exportation of goods
Section 54-61;Importation of goods section 37-41.
Customs and Excise Tarifff (Tariff) Notice,2017,Statutory 111 of 2017,Rules and Laws of Tariffing
Edward G. hinkelman (2018),Dictionary of International Trade 12th Edition;handbook of the Global Trade Community,World Trade Press.
Zimbabwe Parks and Wildlife Management Authority 2017 report,Export and Cites permits and Statistsics in Zimbabwe parks.
Charles Mbohwab (2002),Zimbabwe:an Assessment of the Electricty Industry and what needs to be done;Elsevier Science Inc ,Journal
Energy Sector in Zimbabwe, 4th March 2016: Source: Ministry of Energy Power
Development, ZESA, ZETDC, SAPP and Africa Development.
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United nations Conference on Trade and Development(2003),Efficient Trade and
Transport facilitation to increase participation by developing countries in the international
Trade
South Africa policy on export certification for Animals and Animal Proudct:Transiting (12
December 2008),No 31680
APPENDICES
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Export of Elephants Appendices
Appendix A : Unit Loading Dimension ,Ages and weights.(Approximate for ULDs) as extract information was restricted from accessing. Elephants ID # Length x width X height Weight (Kgs) Ages (yrs) ZIM2018/0325 2.5m x 1.65m x1.10m 348.52 3 ZIM2018/0326 145x1.25x1.35m 185 2 ZIM2018/0327 160x 1.15 x 1.45m 197 2.4 ZIM2018/0328 1.78 m x 1.32 m x 1.56m 205 2.8 ZIM2018/0329 1.95 m x 1.70 x1.72m 450 4 ZIM2018/0330 1.57m x 1.24 x1.39m 185 2.0 ZIM2018/0331 1.67m x 1.8 x 1.35m 193 2.3 ZIM2018/0332 1.75 m x 1.52 x 1.30m 349.7 4.1 ZIM2018/0333 1.5m x 1.87 x1.18m 187 2.0 ZIM2018/0334 1.85 m x 1.76 x 1.55m 258 3.2 ZIM2018/0335 1.65m x 1.85 x 1.5 m 295.80 3.5 ZIM2018/0336 1.4 m x 1.79m x1.12m 192 2.0
Appendix B: Quarantined Elephants at Hwange Due to diseases: Sources ;Hwange national Park Images 2013 ,internet
Apendix C: Vaccination and DNA collection by experienced Veterinary Doctor (Source; Kurger national Park, 2013)
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Appendix D:Vaccination of Elephants for exportation (Source, Krurger National Park 2015)
Appendix E: Transportation to Rail Private Siding (The Guardian, 2016)
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Appendix F:Derailment of goods train: Source (Chronicle Newspaper; 19 November 2018)
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Appendix G:Elephants Exportation Costings
Total Exchange Service Description Provider rate Charged On Measure Fees/Charges Rate USD RATE
Elephants Exportation Hwange Procedures ZWL USD Permits/licenses Applications ZWL 180.00 permit/licenses 6 1080.00 2.5 432.00 USD 2500.00 per USD 7 China Inspectors Costs day week stay 3 USD 7500.00 1 500.00 Comunications ZWL 65.00 per day 21 ZWL 1365.00 2.5 USD 546.00 Health vaccination Charges ZWL 1 352.00 procedure 1 ZWL 1 352.00 USD 540.80 USD 2 Food and watering Costs USD 2450.00 1 USD 2450.00 1 450.00 Provincial Animal Clearance ZWL 120.00 per permit 3 ZWL 120.00 2.5 USD 144.00 Zimparks Guides& veterinary USD 3 Costs USD 3575.00 wages 1 USD 3575.00 1 575.00 Independent Surveyors -Animal USD 1 Cntrs ZWL 235.00 per container 12 ZWL 2 820.000 2.5 128.00 Quarantine Storage Charges ZWL 200.00 per day 11 ZWL 2200.00 2.5 USD 880.00 Loading of Elephants ZWL 325.00 per elephant 12 ZWL 3900.00 2.5 USD1 560.00 USD 18 Total charges 236.80 USD 5 % Disbursement fees 5%*(18236.80) 913.19 Total Hwange Charges & USD 19 Handling 149.99 Transportation to Harare USD 7 Rail Transport Hwange-Harare ZWL 1522.50 per elephant 12 ZWL 18270.00 2.5 308.00 (USD Less Derailment Loss Fees ZWL 380.56 per elephant 12 ZWL 4.566.72 2.5 1826.69) Total Refunded from NRZ USD 5481.31 USD Road Freight to Harare Inc.cntr USD 2 100.00 per truck 6 USD 12600.00 1 12600.00
USD Toll Gates ZWL 20.00 per truck 6 ZWL 120.00 2.5 48.00 USD 27 Total Road Freight 264.00
Insurance 0.5% of Total Cosignent value USD 5750.00 per shipment 1 USD 5750.00 1 USD 5750.00 USD Total GIT Insurance 5750.00
Export Clearance USD 3 Agency fees ZWL 650.00 per elephant 12 ZWL 7800.00 2.5 120.00 Customs fees ZWL 10.00 per bill of entry 1 ZWL 10.00 2.5 USD 4.00 Courier Services USD 17.00 per parcel 1 USD 17.00 1 USD 17.00 USD 3 Total Export Charges 141.00
Airfreight Charges to China
USD 25 Air-freight Charges to China USD 25 650.00 per shipment 1 USD 25 650.00 1 650.00 USD 4 Additional Airfreight From France USD 4 500.00 per shipment 1 USD 4 500.00 1 500.00 USD 16 Escort and inspectors costs USD 16 000.00 Team of seven 1 USD 16 000.00 1 000.00 USD 46 Total Freight Charges 150.00
Cost of goods USD 1 150 000.00 Hwange Total Charges USD 19 149.99 Total Road Freight Charges USD 27 264.00 GIT insurance USD 5 750.00 Total Export Charges USD 3 141.00 Ex Works Value USD 1 205 874.99
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Import Appendices Appendices I:Approximation of Cargo Dimensions for Cargo possible movement illustration.
IMPORT CARGO DIMENSIONS Cargo description Dimensions Weight (tons) UN Code Category 1 Bucket wheel without 17 buckets 10.5mx 2m 60 tons Bucket Wheel Boom 27m x 1.8mx1.22m 130tons BW Discjharge Chute 32.5 x1.8m x1.56m 85 tons Operators Cabin 2m x 1.8m x2.20m 38tonnes hydraulic lifter :Chute Discharged 2(32.5m x 1.20m) 55tons :Excavator Boom 2(27m x diameter 1.6m) 75tons small structures :OOG Mixed 110tons counter balance 13m x 2.55m 38tonnes crawler tracker x 2 2.25m x 2.75m 130tons Main Superstructure 10m x 7.56 m 340tonnes
CATEGORY 2 Dismantled 17 buckets 11724mm x 2208m x2597mm 28ton Electrical cables and ropesgearbi 11724mm x 2208m x2597mm 26tons Gearboxcutting boom hoist cables and ropes 11724mm x 2208m x2597mm 27tons Safety eXtiguishers 11724mm x 2208m x2597mm 15tons UN1044 Batteries 11724mm x 2208m x2597mm 27tons UN3481 Air conditions gases 11724mm x 2208m x2597mm 22 tons UN1002 Miscelleauoneous parts 11724mm x 2208m x2597mm 25tons
CATEGORY 3 2 ULD spare parts 2(2235mm x2286mm) 10 tons 4 drums atomex hydraulic pump oil 276cmx258cmx56cm 4.94 tons 4 drums lubrication oil 276cmx258cmx56cm 4.94tons UN1950
NB: Exact dimensions and weights were to be obtained from Takraf Germany.Please note dimensions were for case movement of cargo.
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Appendix J:Category 2 Costing 5*40HC containers ;BEiRA
Customer Hwange Colliery Mine
BTLCAT FILE NUMBER 0002 CONTAIINERS 5 x 40HC CURRENCY ZWL /USD PAYMENT TERMS 30 Days
SUPPLIERS TO BE PAID Total Invoice Disbursement/ Amount Invoice Cost Amount Description : Quantinty Unit Price USD: USD Supplier : No. : USD
USD$ SEAFREIGHT 5 Cntrs 2460.00/40HC 12 300.00 19 200.00 BTL BEIRA BTL100256 $750.00 SHIPPING LINE CHARGES 5 Cntrs USD$ 65.00/40HC $0.00 $325.00 CFM RAILWAY CFM256 $6,250.00 PORT CHARGES 5 Cntrs USD$150.00/4OHC $750.00 $750.00 NRZ ZWNRZ345 $4,992.00 PROFIT SHARE 5 Cntrs USD$40.00 $200.00 $0.00 COURIER FEE $80.00 $0.00 AGENCY FEE 5 Cntrs USD$350.00/40HC $0.00 $1,750.00 RAIL FREIGHT- USD$ Machipanda/forbes 5 Cntrs 1250.00/40HC $6,250.00 $6,250.00 RAIL FREIGHT-Machipanda- ZWL 2 Hwange 5 Cntrs 496.00/40HC USD4992.00 $4,992.00
$7,280.00 $14,067.00 $11,992.00
Seafreight margin $6,000.00 Profit share $200.00 Total revenue $6,200.00
Total Revenue ZWL ZWL 15 500.00
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Appendix K:Bucket Wheel Excavator Model SRs 1400.2.3 Source:www.takraf.com.Cargo was moved excluding belt wagon .
Source:www.takraf.com-website
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Appendix L:Description of parts from Takraf website
Source Takraf Website
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Appendix M:Category 3 Costings
Disbursement/ Revenue/ Total Invoice Income Amount Total ( USD) Description : Cost Amount : : Invoice (ZAR) : :
AIRFREIGHT CHARGES-GERMANY TO SA USD3932.50 USD3932.5 USD3932.50 SA TO ZIM USD1625.00 USD1625.00 USD1625.00 Total Airfreight Charges USD5557.50 USD5557.50 USD5557.50
CARGO DUES/OTHER CHARGES R 1,946.30 R1946.30 R1946.30 SERVICE FEE AWB FEE AMENDMENT R 425.50 R 425.50 CONSOLIDATION FEES R 300.00 R300.00
INSURANCE CHARGES
IMPORTATION CLEARANCE ZIMBABWE CLEARANCE FEES USD350.00 USD350.00 PHYSICAL EXAMINATION USD215 USD215.00 EMA FEES USD30.00 USD30.00
DELIVERY CHARGE TO HWANGE USD$2900.00 USD 3524.00 DOC FEE R300.00 R 350.00 R300.00 FACILITY FEE USD250.00 USD250 USD550.00 AGENCY FEE USD550 USD550.00 R 1,946.30 R 1,075.50 R 425.50
CLEARANCE FEES USD350.00 AGENCY FEES USD550.00 DELVERY FEES USD624.00 TOTAL REVENUE USD1524.00
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Appendix N:Costing For category 2 Total Exchange Service Description Provider rate Charged On Measure Fees/Charges Rate USD RATE Category 2 Importation Richards bay handling Charges Permits/licenses Applications BBK landing OOG ZAR538.00 per mt 1140 ZAR 613320.00 13.5 USD45431.11 Port Dues ZAR 31.50 per mt 1140 ZAR35910.00 13.5 USD 2660.00 Tally Cost ZAR 6.00 per mt 1140 ZAR6840.00 13.5 USD506.67 Survey Charges ZAR 5 700.00 per day 6 ZAR34200.00 13.5 USD2533.33 Stevedoring ZAR 3000.00 per day 4 4 ZAR12000.00 13.5 USD888.89 Transit documentation ZAR 1600.00 per truck 12 ZAR19200.00 13.5 USD1422.22 Communication fees ZAR 160.00 once off ZAR 160.00 13.5 USD11.85 Total Charges ZAR 721 630.00 13.5 USD 53454.07 5% Disbursement ZAR 36 081.50 13.5 USD 2 672.70 Total Charges ZAR 757 711.50 13.5 USD 56 126.77 Transportation to Hwange Road Transport Richarfds Bay- ZAR 1 025 Hwange 000.00 12 trucks 1 invoice ZAR1025000.00 13.5 USD 75 925.93 Road Freight to Harare Inc.cntr USD 2 100.00 per truck 6 USD 12600.00 1 USD 12 600.00 Toll Gates USD 450.00 per truck 12 USD 5 400.00 1 USD 5 400.00 Total Road Freight Insurance 0.5% of Total Cosignent value EUR 800 000 per shipment 1 EUR 800 000 1 Total GIT Insurance Export Clearance Agency fees ZWL 1 650.00 per truck 12 ZWL 19 800.00 2.5 USD 3 120.00 per bill of Customs fees ZWL 10.00 entry 1 ZWL 10.00 2.5 USD 4.00 Total Export Charges USD 3 141.00
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