May 2006 Issue

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LaserLink

• In this issue
• Positive move to ease road congestion at Durban
  terminal
• Gama outlines Spoornets Eastern Cape plans
• German delegation visits Eastern Cape
• US/SACU free trade deal pushes ahead
• Latest figures on commercial vehicle exports
• New sea loop on West Africa trade
• SAA to offer daily flights to Washington
• WTO forecasts 2006 global export growth at 7
• Whats wrong with Spoornets service?
• Security association plans SA visit
• About those Incoterms.Ex Works.
• After a wait of 20 years the R100-million to
  build the Congella bridge in Durban has finally
  been approved in a joint project between the
  National Ports Authority (NPA) and the eThekwini
  (Durban) municipality.This is expected to improve
  accessibility into the area and relieve
  congestion on Bayhead Road and South Coast Road.
• Spoornet is planning to increase from 20-40 its
  share of container traffic carried from East
  London inland by 2010, CEO Siyabonga Gama told
  delegates at the Eastern Cape transport summit
  held in East London recently.Investment in
  Eastern Cape rail corridors is a strategic
  imperative for South Africa, said Gama, and
  Spoornet was targeting growth in rails share of
  both the container and bulk markets on the inland
  routes.

• A delegation of 20 German business people visited
  the Eastern Cape strengthening already
  established ties with the region.About 10 500
  new jobs have been created in the region since
  the province entered into a partnership with
  Lower Saxony, one of Germanys largest states, 11
  years ago, said Christian Wulff, premier of Lower
  Saxony during his first visit to the
  province.Many companies from Germany including
  Volkswagen, Daimler Chrysler, and Steinhoff have
  made investment in the province in order to
  create jobs, he said. His federal state and
  Eastern Cape have set up joint projects in the
  fields of education, health and vocational
  training.He appealed for close co-operation on
  issues concerning the 2010 World Cup.The
  partnership between the Eastern Cape and lower
  Saxony was established in 1995.
• Deputy US trade representative Karan Bhatia has
  met with senior officials from the member
  countries of the Southern African Customs Union
  (SACU) SA, Botswana, Lesotho, Namibia and
  Swaziland.. Bhatia said the US remains committed
  to concluding a comprehensive free trade
  agreement (FTA) and, in the near term, to
  strengthening the US-SACU trade and investment
  partnership in concrete ways. According to
  Bhatia, discussions focused on the best way to
  move forward on the FTA and how to build on and
  improve the trade partnership. To that end, the
  US and SACU have agreed, subject to approval by
  ministers, to establish a framework through which
  the parties will remain vigorously engaged in
  growing and deepening their relationship. 
• According to the latest figures from the National
  Association of Automobile Manufacturers of SA
  (Naamsa), SA exported 4 797 light commercial
  vehicles(LCVs) in March, and 11 445 for the first
  quarter. In medium commercial vehicles (MCVs) the
  total export for March was 4 units with 9 in the
  first quarter for heavy commercials (HCVs) the
  figures were 5 and 15 for extra heavies (EHCVs)
  10 and 15 and for buses 10 and 15.

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• According to the latest issue of BRS-Alphaliner,
  Maersk Line and Safmarine are understood to
  launch an additional relay loop between Algeciras
  and West Africa, covering Dakar, Lome, Pointe
  Noire, Libreville and Takoradi (WAF 9). Previous
  experience indicates that four or five ships of 1
  400-2 200-TEUs will be used.
• SAA has announced that it is closing its daily
  service to Atlantas Hartsfield-Jackson
  International Airport and upgrading the current
  four flights a week to Washington-Dulles
  International Airport to a daily service. It will
  have a brief stop in Dakar, Senegal - offering a
  connection to other points throughout West
  Africa.On these flights, SAA will introduce its
  flagship Airbus 340 aircraft - replacing the
  Boeing 747-400.
• The World Trade Organisation (WTO) reported that
  exports in goods increased by 6 in 2005 (in real
  terms) and estimated they would rise by 7 in
  2006. The surge in the price of oil and metals
  helped the share of fuels and mining products to
  reach 16 of global trade last year, according to
  the UKs Economist, its highest for 20 years. 
• Spoornet has invited its customers, through the
  medium of FTNow, to submit any suggestions that
  would help to improve its service.If youre
  dissatisfied with the service currently on offer
  and if you have any constructive ideas, send them
  to joyo_at_nowmedia.co.za They will forward them to
  Spoornets strategy division and provide their
  feedback.
• South Africas poor security record has attracted
  the interest of the Technology Asset Protection
  Association (Tapa), which is keen to play a role
  in raising security standards in the
  country.Established several years ago by 20
  global high tech companies, including Apple,
  Ericsson, Dell, Hewlett-Packard, Nokia and
  Samsung, its objective is to effect positive
  change in the security practices of the freight
  and insurance communities.A delegation is
  expected in South Africa on May 15 to discuss its
  concerns and suggestions with the main players. 

• Incoterms 2000 It is not recommended that the
  following interpretation of the terms is used
  commercially. This interpretation is provided as
  a guide only.
• EXW (Ex Works) represents the minimum
  involvement of the seller and the maximum
  involvement of the buyer in the movement of the
  goods from the point of works. The statement
  EXW must be qualified to give the address of
  the works, which may be a factory, site or
  warehouse etc. Care should be taken to note that
  the actual point of manufacture might well vary
  from the place where the seller operates their
  commercial undertaking. Under Incoterms 2000,
  risk and responsibility pass from the seller to
  the buyer when the cargo is made available on the
  ground at the works, at or on the agreed future
  date or future time, uncleared through customs.
• The seller must give advance notice of
  availability (how much notice would have to be
  predetermined e.g. through the sales contract).
  This point is important as the buyer assumes
  liability for all risks from the time of
  availability on the ground and is therefore
  exposed from that moment up to the event of
  collection. During this period, the buyer is
  liable for all risks to the cargo, even though
  they are not yet under the buyers physical
  control, and this is further aggravated by the
  fact that the goods are generally uninsured
  throughout this period too.
• The buyer and seller should only consider EXW
  when the buyer can actually arrange the customs
  clearing prior to export and for the immediate
  collection of the cargo on availability. The
  seller should note that the export of the goods
  is NOT guaranteed under EXW and the buyer may,
  for example, may opt to keep the goods in the
  country of origin. Although EXW is a popular term
  it remains complex.EXW is rarely compatible with
  documentary credits (for example.) and the term
  FCA often offers a more manageable alternative.
• Should you have any enquiries please contact
  Jenny Iyer
• jenny_at_laserint.co.za tel.(27) [phone].
• The views and opinions expressed in these
  articles are those of the
• Authors and not necessarily those of Laser
  Logistics (Pty) Ltd or the
• Laser Group (Pty) Ltd, unless specifically
  indicated. While everything
• possible is done to ensure the accuracy of the
  information in this issue,
• which is believed to be correct, neither Laser
  Logistics (Pty) Ltd nor the
• Laser Group (Pty) Ltd, may be held responsible
  for any errors.