Enabling Private Sector
Development along the
North-South Corridor
World Bank Office, Lusaka
3 May 2011
Dr Paulo Fernandes, Econogistics (Pty) Ltd
An MCLI Member
Overview
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The Maputo Corridor
The Maputo Corridor Logistics Initiative (MCLI)
Role of the MCLI
Successes of the Maputo Corridor
Government and the Private Sector
Key challenges and lesson from the Maputo
Corridor
• Key success factors
• Contacts
The Maputo Corridor
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A economic corridor linking the economic
hub of South Africa to the Port of Maputo
Launched as a tri-lateral initiative between
South Africa, Mozambique and Swaziland
in the 1990’s
The initiative has seen massive investment
in transport infrastructure over the last
decade – road rail, ports
There has also been significant economic
investment
Socio-economic impact has been
independently evaluated and
demonstrated to be significant
The initiative therefore has been and
continues to be considered one of the
more successful corridor development
programmes in the region
The Maputo Corridor Logistics
Initiative (MCLI)
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The MCLI is a non profit corridor management institution established with the
objective of revitalising the transport route, the investment in key infrastructure,
and removal of bottlenecks and constraints to trade
It is multi-lateral (SA, Mozambique, Swaziland) and multi-stakeholder membership
organisation working with a PPP model
It operates within the framework of NEPAD, SADC and AU transport corridor
development policy and has its emphasis on the promotion of cross border trade
and investment and regional integration
The initiative began after a hiatus of some years in the formal corridor
development process following the failure of the institutional mechanism set up at
the time by the Mpumalanga Provincial Government
Achievements
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High visibility, particularly in freight and logistics sector
Successful interface between Government and the private sector to the highest level
Acknowledged on African continent as model corridor institutional framework
Wide stakeholder reach and communication on the corridor
Increased usage of the corridor
NEPAD Infrastructure Award
The role of the MCLI
INTEGRATE – COORDINATE – COMMUNICATE - FACILITATE
• Act as a platform for engagement/interface between the public and
private sector stakeholders to resolve constraints
• Promote the Maputo Corridor and market the strategic benefits
and opportunities of the Corridor
• Coordinate and disseminate information and research on the
Maputo Corridor
• Participation in key National and Regional bodies and forums
Successes of the Maputo Corridor
• N4 – Road Concession
– Ongoing rehabilitation of infrastructure
– Nelspruit Bypass – R1BN
– Freight volume has increased by 11% p.a. at the Nkomazi Toll Plaza and 28%p.a. at
the Moamba Toll Plaza
• Upgrade of the rail corridor to Maputo
– Maputo Corridor – 5th SA Rail Corridor
– Private sector investment in rolling stock
• Port of Maputo
– Private concession on the Port of Maputo (>2043)
– Massive upgrades in port infrastructure
• Investment $750M – early 5 years
• e.g. Container Terminal – 100K TEU to 180K TEU, Coal Terminal - expand from 2M to 6M
ton, Car Terminal, Passenger cruise terminal
• Channel dredging programme completed Jan 2011 to increase current draft from 9.4m to
11m, with the tide, which will accommodate Panamax size vessels
– Increased throughput from current 8.7 Million tons to 48 million tons
– Port Masterplan envisages a further capital investment in the port of USD
$750million in the next 20 years
Successes of the Maputo Corridor
• The Lebombo/Ressano Garcia Border Post
– Upgrading of Lebombo border post (S.A.) in 2010 - separation
of freight traffic, busses, passengers and pedestrians
– Design allows later incorporation into the OSBP
– Rail facility development is on the cards
– Km 4 upgrade and km 7 upgrade on he cards
– 24 hour operation during Festive season and lobbying for yearround opening of the border on a 24 hour basis
– Border process improvements - SA Customs modernisation,
MOZ – Single window system
• MCLI has successfully maintained a multi-sector
participation at all levels, including its Executive and
sponsorship structures
174 Members and Cooperation Partners
from Mozambique, Swaziland and
South Africa
Government and the Private Sector
• The PPP model adopted by the MCLI has enabled
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Shared responsibility and mutual accountability
Access to key sector relationships and institutional knowledge
Access to important strategic partnerships
Maximisation of synergies between public and private sector
skills, knowledge and expertise
– Alleviation of capacity constraints and bottlenecks through a
shared approach and shared mobilisation of resources and
expertise
– Maximising the use of public and private investment for the
benefit of all corridor users
Key challenges and lessons learnt from
the Maputo Corridor
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Vision
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Mandate
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Clear, consistent and long-term vision
Addressing the needs of multiple stakeholders – “what is in it for me?”
On-going communication and sharing of the vision
Support the Vision - clear, consistent and long-term (across several political administrations)
Needs to be strong enough to allow and ensure effective participation across multiple Government
departments in various countries, and in regional structures
Needs to be neutral enough to ensure objectivity between the needs of various stakeholders
(“minefield”)
Should not be seen as threatening - making any one stakeholder look bad and non-performing
Some level of diplomatic status
Structure
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Should reflect the Vision – non-profit allows clarity of Vision
Should ensure transparency, good governance and representative participation - important that one
country is not perceived as the “leader/benefactor” to the detriments of the others
Should facilitate the necessary funding arrangements
Key challenges and lessons learnt from
the Maputo Corridor
• Sustainability
– Should reflect the Vision – long-term
– Should allow neutrality of mandate and not be hijacked by key funders
or the need to “sell” services to survive
– Should not detract capacity from delivering on objectives – ensuring
financial sustainability at times becomes a full time job at the expense
on corridor development activities
• Capacity
– Executive participation by private sector and Government
representatives is key – continuity of participation is a challenge
• Government – frequent changes of staff
• Private sector – sometimes participate only until certain issues are addressed
– Must support the Mandate and be supported by funding – should ensure
top level technical capacity is put in place, sustained and retained
Key success factors
• Passionate leadership
• An active secretariat and committed board of directors from both
public and private sector out of both countries
• An institutional framework with the right mix of partners
• Relationships built through MCLI’s interface between public and
private sector through weight of membership mandate
• Strong stakeholder support base
• Bilateral agreements at national level
• On-going political will in the region
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Contacts
Brenda Horne-Ferreira
CEO: Maputo Corridor Logistics Initiative
Tel: +27 (0)13 755 6025 Mobile (SA): +27 (0)82 802 2338
Fax: +27 (0)13 752 5453 Mobile (MOZ): +258 84 397 4180
brenda.horne@mcli.co.za
www.mcli.co.za
Dr Paulo Fernandes
CEO: Econogistics (Pty) Ltd (a subsidiary of PDNA Holdings (Pty) Ltd)
Tel: +27(0) 11 566 8309 Fax: +27 (0) 86 600 7699
Mobile: +27 (0) 82 655 5170
paulo@econogistics.co.za
www. econogistics.co.za