• Save
Upcoming SlideShare
Loading in...5







Total Views
Views on SlideShare
Embed Views



0 Embeds 0

No embeds



Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

ExxonMobilSouthAfrica ExxonMobilSouthAfrica Presentation Transcript

  • South Africa Logistics and TradeReviewSummarized from extended study by the Center forSupply Chain Research at Penn State
  • Trade Policy Overview• Most diversified economy in Africa• Ranked 79th out of 141 countries for inward FDI performance  United Nations Conference on Trade and Development• Open market policy  Six major international trade agreements ▫ EU-TDCA, SADC, SACU-EFTA, SACU-India PTA, SACU- MERCOSUR PTA, AGOA• Significant Chinese FDI in South Africa and Sub- Saharan Africa  Potential to serve as low cost labor market in future
  • African Free Trade Zone• Free Trade Zone created between three trade blocs: SADC, COMESA, EAC  Announced October, 2008  26 countries with a combined GDP of U.S. $624bn  Lowered tariffs, import quotas
  • SADC & SACU• Southern African Development Community  Angola, Botswana, the Democratic Republic of Congo, Lesthoto, Madagascar, Malawi, Mauritias, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania and Zimbabwe ▫ Eliminated tariffs and import quotas• South Africa, Botswana, Lesthoto, Namibia and Swaziland  Oldest customs union in the world
  • SADC: Gateway to Southern Africa• Market access to 14 countries• Member states are committed to the development of trade and transportation infrastructure Map Showing the Southern African Development Community
  • BRICS• South Africa now official 5th member of summit  Brazil, Russia, India, China & South Africa• Indicator of future potential  As wage rates increase in East Asian countries, labor intensive processes may shift to emerging African economies ▫ Six of the world’s fastest growing economies are on the African continent
  • South Africa as an alternative to theSuez CanalSuez Canal South Africa• Regional political unrest may • Less risk; political stability complicate trade • Could serve as a cross-docking• Risk of piracy surrounding point for large international eastern coast of Africa shipments• Less expensive, faster route • More expensive route between Asia and Europe
  • South Africa as an alternative to theSuez Canal (continued)Suez Canal South Africa
  • Logistics Overview• Ranked 28th of 155 countries for logistics and supply chain performance  Source: The World Bank• Logistics market valued at U.S. $41 billion• Outdated infrastructure; renewal underway
  • Transnet• Authority and operator of all major ports, railways, pipelines and roadways• State owned company• Leading the renewal of South Africa’s infrastructure
  • Ports• Eight deep water ports  Each serving specialized market/cargo type• Controlled by Transnet• Ngqura (Coega) Industrial Development Zone  One of many recent constructions to modernize infrastructure & promote Ports: Richards Bay, Durban, Saldanha, Cape Town, Port Elizabeth, East trade London, Mossel Bay, and Ngqura (Coega)  Located at Port Elizabeth
  • Rail• Most developed rail system in Africa  12,800 km core network  7,300 km branch network• Outdated infrastructure  Average locomotive fleet age is thirty three years• Renewal  South African Government investment ▫ U.S. $4.5 billion over the past four years ▫ Additional U.S. $5.2 billion underway  GE to update locomotive fleet with new diesel and electric models ▫ Contract worth U.S. 7.49 billion
  • Rail (continued)• South African Government pushing for railway integration with other African nations  Trade between African nations will be made easier and less expensive  Infrastructure expansion a priority within the African Free Trade Zone
  • Key Takeaways• South Africa is one of the leading emerging economies in the world  Newly included in BRICS summit• Infrastructure is outdated, but undergoing modernization  Heavy investment both by the South African Government, and other governments (e.g. China)• African continent as a whole is moving forward  Six of the top ten fastest growing economies were on the African continent  South Africa in a key strategic position as a gateway to other African nations  As nations grow, so will demand for consumer products (e.g. Mobil 1)