Transit Customs Regime Diagnosis and Recommendations ... - MCLI

Draft Report for SSATP –MCLI Mozambique Transit Regime Project
3.2 Export Transit Evaluation
At present, transit exports represent the bulk of the cargo moving on the Maputo Corridor
from South Africa, via Maputo to international destinations. The main markets that are
attractive are the eastern markets, such as China and India, owing to geographic location
and shipping line trade routes. Cargo going to many western destinations is still, in many
cases, transhipped in Durban for on-carriage on mainline vessels to Europe, the USA and
South America.
The main driver for exports via Maputo instead of Durban or other South Africa ports is the
distance and hence transport costs from the producer to Maputo, versus to a South
African port as many of the other charges such as the port and shipping costs are as
competitive as when shipping via South Africa. The closer to Maputo the producer is, the
further he is from a South African port and hence the cost saving on trucking and rail
justify the increased complexity inherent in shipping via another country with prescribed
transit controls and procedures.
It is to be noted that when shipping via Maputo, South African exporters are not required
to provide bonds or guarantees and goods are required to be taken directly into the port
precinct which is as such considered a bonded facility. This has greatly facilitated the
movement of cargo via Mozambique, by both road and rail.
The focus of this study is to compare the costs for a Johannesburg based shipper, the
largest container catchment area for cargoes on the corridor, that are not commodity
based, such as mining houses that are based further on the corridor towards Maputo and
have the added benefit of shorter distances and hence lower costs.
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