1. The Maritime Industry in 2016 – challenges and opportunities

2. THE MARITIME INDUSTRY State of the Industry African & ME considerations Conclusions SUB HEADING

3. SEA TRANSPORT TRENDS Declining freight rates and vessel numbers World economic slowdown Unused capacity Sustainability of carriers? Rationalisation – takeovers and mergers A PERFECT STORM?

4. SOME INTERESTING FACTS >90% of international cargo is carried by sea Sea transport is the “greenest” option available Size matters? Container vessels up to 20 000 TEU, but at what cost to flexibility? Point 2 Point 3 THE IMPORTANCE OF SEA TRANSPORT

5. SLIDE HEADING Limited number of ports to accommodate these ships They were built to reduce freight rates, but that only really works when they are full 20 million containers at sea at any one time SUB HEADING

6. Contribution to GDP (e.g. 2% in the UK) Low cost of logistics – compare the seafreight with the inland costs – consider $ 5 LCL rates and $ 200 container rates. Impact of piracy and port delays on rates – surcharges and increased rates – both W and E Africa and the Red Sea/Arabian Gulf ECONOMIC CONSIDERATIONS

7. THE CARRIERS Important source of revenue, but relations strained. Lack of transparency and dictatorial attitudes, but they’re struggling to survive African considerations – Port congestion and delays, customs & non-tariff barriers increase costs and affect regularity and reliability FORWARDERS RELATIONSHIPS WITH THEM

8. The surcharge industry Not surprising in view of tough economic conditions But unjustified to charge, e.g. USD 60/day for container detention. Habit of marking up services we’re forced to use But does all this impact on forwarders?

9. AFRICAN & ME PORTS Wide disparity – from container handling at 35. No development of regional transhipment hubs (Africa) Expensive, often slow inland distribution Inadequate rail links Conclusions PRODUCTIVITY & EFFICIENCY JEBEL ALI DAR ES SALAAMDURBAN

10. Impact of oil & gas – new port development hindered by collapse in oil prices Static volumes and depressed prices hinder new development Landlocked countries suffer DAKAR

11. REGULATION National regulation of port tariffs & activities (e.g. RSA Regulator and PCC system) can achieve results – with cargo dues reducing or remaining unchanged. However THC’s increase above the rate of inflation as they are not regulated Oversight role of Port Authority not carried out properly – implementation of TOPS. NATIONAL AND INTERNATIONAL

12. SOLAS CONVENTION – VGM DECLARATIONS

13. SOLAS CONVENTION Implementation on July 1 Need to accredit thousands of exporters Lack of visible progress Clarity over “shipper” vs contract packer, warehouse etc. Tolerances? Feedback from delegates Status of major exporters – China, India etc. Many countries not IMO members Transhipments – do original VGM declarations still apply READINESS OF INDUSTRY

14. CONCLUSION Need for public & private sectors to work in harmony – perceived inability of governments to develop and operate ports Difficult question of “concessioning” and “The P word” Need for us to work harder at lobbying ports. We spend much of our energy focussing on customs, but this area can be equally important. “What’s good for our customer is good for us”. THE KEY IS PROGRESS

15. THANK YOU