SOUTH AFRICAN ASSOCIATION OF FREIGHT FORWARDERS-KZN
(Affiliated to the South African Association of Freight Forwarders)
1st Floor · Chamber House · 190 Stalwart Simelane Street · Durban 4001 · PO Box 1506 · Durban 4000
Tel: 031-2202010 Faxmail:0865539632 Email:. Website:www.saaffkzn.co.za
Secretaries: Durban Chamber of Commerce and Industry
STILL SERVING FREIGHT FORWARDERS AFTER 114 YEARS
MINUTES of a meeting of the Executive Committee, held in the
Conference Centre, Chamber House, 190 Stalwart Simelane Street, Durban,
on 08 June 2010 at 09h00.
PRESENT: Lionel Dwyer Vice-Chairperson, SAAFF-KZN
Committee Members [in the Chair]
Jacques de Villiers Chair, Warehouse Division
Louise Dawson Co-opted Committee Member
Philip Edwards Chair, Publicity Committee
Marcus Ellappan Vice-Chair, Harbour Carriers Division
Victor Govender Co-opted Committee Member
Mervyn McGregor Chair, Budget & Finance Committee
Kevin Martin Chair, Harbour Carriers Division
Debbie Nortje Vice-Chair, Publicity Committee
Emmanuel Ntshangase Chair, Training Committee
Dave Watts SAAFF-KZN Executive/Chair, Customs
& Maritime Committees
Member Representatives Anthony Botha Thrutainers International
Naeem Hoosen Synergy Freight
Graeme Impson Bridge Shipping
Joey Naidoo Clear Freight
Paul Munn Megafreight Services
Tanya Willett Panargo Shiping
APOLOGIES FOR: Heather Cannan Chair, Membership Committee
ABSENCE Deno Moodlayiar Chair, Airfreight Division
Tim Pillay Co-opted Committee Member
Malcolm Sodalay Chairperson, SAAFF-KZN/SAAFF
Director KZN Affairs
SECRETARY : Jenny Otto
1. WELCOME AND APOLOGIES
1.1 The Chairman welcomed Committee members and member representatives present, explaining that he had been requested to Chair this meeting by Mr Malcolm Sodalay, who was unable to attend due to business commitments.
1.2 Apologies for absence, as recorded above, were noted.
2. CONFIRMATION OF MINUTES
The Minutes of the meeting of the Executive Committee, held on 11 May 2010, were confirmed and signed as a correct record of the proceedings.
3. MATTERS ARISING FROM PREVIOUS MINUTES
3.1 New Acquittal Procedure Workshop
The Chairman stated that Customs would not be holding workshops on the new acquittal procedure, having pointed out that printed copies of relevant details had been placed in agents’ boxes.
3.2 Foreign Drivers: Work Permits
It was noted there were no further developments to report in this regard. Mr Martin remarked that most foreign drivers employed by South African registered truckers had refugee status and visited the Department of Home Affairs every three months to get their documents stamped, permitting them to continue working in this country.
3.3 Chairmanship of the Durban Port Liaison Committee
It was noted that Mr DH Watts had taken over the Chairmanship of the Durban Port Liaison Committee.
4. SAAFF NATIONAL
Reporting on the Board meeting held in the last week of May, Mr Watts commented that the main points of interest to SAAFF-KZN had been the discussion on the three week Transnet strike and the recruitment of a new Chief Executive Officer. Advertisements had been placed in the Business Day and Mail and Guardian, eliciting 28 applications, from which a shortlist of 3 or 4 candidates could be identified. As past experience had shown, it was difficult to find someone suitable to manage SAAFF. It had been mentioned at the meeting that a number of KZN Chapter members had not yet paid their 2010 membership dues and would be receiving telephone calls in this regard. He emphasised that, in terms of both the National and SAAFF-KZN Constitutions, Full (C&F) members were required to pay annual subscriptions to the National body as well as their local Chapter(s).
5. CUSTOMS MATTERS
5.1 The Chairman, summarising issues raised at the most recently held Regional Stakeholders Forum, advised that it was disappointing to note that Customs Managers were no longer attending Stakeholder Forum meetings. Accordingly, Customs were not recording notes of matters raised. Of significance was the fact that a new version of the bill of entry was to be introduced with the revised Act due to come into effect in October 2010.
5.2 Turning to the National Stakeholders Forum held on 04 June, which he had attended, the Chairman stated that:
- Beyers Theron had not been present and his substitute had not been able to impart any new information regarding modernisation.
- Time had been spent on discussing the Customer Satisfaction Survey, which it seemed was not being completed and returned. Agents were urged to do so in order to achieve improved service levels.
- Queen Mogane of the Reserve Bank had given a presentation, the essence of which was that in September or October clients would be forced to abandon F178s and go the paperless route. If exporters could not manage this with regard to the UCR so the SARB could identify transactions coming through registered banks by means of the UCR Nos,, funds would not be released. Any banks doing so ran the risk of being deregistered.
- During discussion on paperless release, it transpired there were some issues with land border posts in relation to acceptance of paperless documentation. It appeared that some border posts designated to accept SAD500 EX and IM documentation were mistakenly insisting on international border post documentation such as DP documentation. It should be noted that risk engines were being rolled out at border posts with the consequent possibility of increased stops.
- 380 SARS clients who had not yet paid their licences had been revoked from the system. It was possible these were companies who had ceased operations or had been assimilated over the past two years. A number of clients who had been operating without a licence would be revoked by 31 July for a period of 30 days. Agents who operated in more than one location should be aware that the system recognised only the office where the licence had been registered. For example, Safcor Panalpina was registered in Gauteng; therefore it was crucial that a copy of the licence was held by each branch and submitted to the area Customs office.
5.3 The Chairman drew attention to the fact that during the Transnet strike containers were delivered to whichever SA Port could accommodate them. If they happened to be stopped in, say, Port Elizabeth, they had to be returned to Durban, released under embargo. At this stage the level of provisional payment was unknown.
6. MARITIME MATTERS
6.1 Mr Watts commented that quite clearly the main area of concern during the month of May had been the Transnet strike. The KZN Chapter’s website had been the main channel of daily communication of data during the three week period of the industrial action. He expressed appreciation to sources who had made information available for circulation throughout South Africa as well as the Southern African region At the level of SAAFF National, the performance of Transnet, TPT specifically, was being pursued. He had been authorised to approach SAASOA regarding the formation of a group, similar to the National Port Steering Committee established in the early 2000s to address congestion resulting from infrastructure shortcomings. It was envisaged this group would be representative of organisations and companies impacted by Transnet performance, and would address, inter alia, lack of competition in container handling and other service level issues adversely affecting SA’s economy. He read to the meeting a response from Paul Scannell, the Chairman of SAASOA, which supported in principle the formation of such a representative forum. The matter would be taken forward at National level.
6.2 Continuing, Mr Watts mentioned that different sectors were considering action in respect of the recovery surcharge imposed by shipping lines impacted by the Transnet strike. In his capacity as Chair of the DPLC, he had been requested by the CEO of SAASOA to comment and had scrutinised lines’ bills of lading. The conditions of the MSC one were quite clear as far as imports were concerned. In a situation such as the recent strike, the line was fully entitled to impose additional costs as it so determined. The question was the validity of raising a surcharge on cargo still on board as opposed to raising a surcharge as a result of being obliged to sit offshore for long periods of time through no fault of the line, thus incurring substantial additional expense..
7. REGIONAL AFFAIRS
Mr Watts advised that :
- He had attended an SA Institute of International Affairs Workshop.
- The Customs Union was under duress – it had been reported that the SA Government was spending more than it received in gross duty revenues from member countries.
8. DIVISIONAL REPORTS
8.1 Airfreight Division
8.1.1 It was noted that Mr Moodlayiar had tendered his apologies for absence from this meeting. He had confirmed there were no issues of significance to report.
8.1.2 Mr Govender stated that when airfreight consignments were stopped, agents were required to collect a Customs Officer from KSIA, take him to the Swissport premises for the examination and then return him to King Shaka International. Mr Watts offered to pursue the matter with Mr Moodlayiar.
8.2 Harbour Carriers Division
8.2.1 Mr Martin advised that:
- Reportback on a meeting held at DCT on 03 June 2010 regarding service levels at both the Durban Container Terminal and Pier 1 had been circulated to members.
- On 29 March 2010 TPT had informed SAASOA in writing that in respect of Bafana Bafana matches at the FIFA Soccer World Cup, terminals would be closed from thirty minutes before commencement of the game to thirty minutes after it had concluded. This also applied to the final on 11 July. SAASOA had circulated this notice. Mr Watts had now been notified that there would be no stoppages at TPT terminals during the World Cup period. The question that begged answering was what information hd been conveyed to labour.
Mr Watts felt that it was possible the original decision had been reversed as a result of representations made by shipping lines which, understandably, were opposed to any stoppages that would further delay berthing, loading and unloading vessels, operations having been severely affected by the recent strike.
- A discussion paper headed ‘Do Employees Working For A State Monopoly’s Constitutional Rights To Strike Supersede The Majority of South Africans’ Constitutional Rights To Make A Living?’ had been circulated to this Executive Committee for perusal. He requested those present, should they concur with his argument, to escalate the document to appropriate decision makers.
Mr Watts stated that while he understand Mr Martin’s stance, he had reservations regarding any approach to the Constitutional Court, especially as it was normal for contradictions to be reflected in any country’s constitution. Mr Botha supported Mr Watts’ comments, adding that, apart from being a costly exercise, there could well be alliances or sectors within the economy that would be opposed to Mr Martin’s views.
Mr Martin reiterated his earlier appeal that those who considered the content of the discussion paper to be reasonable escalate it to as senior a level as possible. This was agreed.
- Hi-Cube Containers: the understanding of parties involved in discussions was that Government’s concern related to stability, which had been addressed. At a meeting held the previous day, it had emerged that the main problem was the risk of overhead structures such as bridges being struck. The ruling of a height restriction of 4.3m was confirmed, along with a request for advice as to a possible – and reasonable – compliance date. The authorities appeared to have overlooked the fact that not only would it be necessary to lower the deck of a trailer, but the dock as well. Reconfiguration could cost up to R15-billion. Discussions were continuing.
Mr Edwards suggested that affected parties should demand the reconfiguration of auto carriers and double-decker buses, which were exempt from the height regulation in question.
8.3 Warehouse Division
On behalf of members of his Division, Mr de Villiers expressed appreciation to Mr Martin and his Harbour Carrier colleagues for their efforts, which had benefitted all port users affected by the Transnet strike.
9. TRAINING MATTERS
9.1 Mr Ntshangase informed the meeting that :
- He had passed the recently held Train the Trainer Course.
- During May he had been invited to address pupils at an Umlazi school on career opportunities in the maritime industry. It had been evident that many learners were completely unaware that the industry existed. Having given the matter thought, he had realised that, in the main, candidates for learnerships were referred though family and friends and job opportunities were, on the whole, known only by those ‘on the inside’. Individuals came into the industry by accident, not design, with the result that, in many instances, quality was lacking. Accordingly, he suggested that SAAFF give consideration to participating in school career guidance days (Grade 9 upwards). The cost should be minimal as companies would be invited to present on opportunities available in their organisations and supply promotional information. At this stage he had not developed a strategy, but would pursue the matter with colleagues and revert to the Executive Committee with recommendations.
The meeting embraced Mr Ntshangase’s proposal, Mr Watts suggesting that shipping lines, and rail and road transport be included; and Mr Edwards that a SAAFF information ‘package’ be put together, incorporating a CD, similar to that used at the Relaunch Presentations in 2006. Mr Martin advocated that the annual Royal Show in Pietmaritzburg be used as a vehicle for promoting SAAFF’s initiative.
The Chairman cautioned that, in order to avoid possible resistance, buy-in should be obtained from individual companies with established career guidance programmes.
It was agreed that Mr Ntshangase should investigate further and invite opinion and participation from industry, including SAASOA, Transnet Freight Rail and transporters.
Action: Mr E Ntshangase
9.2 Proceeding, Mr Ntshangase mentioned that he had attended the TETA SDF forum recently held in Pinetown, at which time the new online system for submission of WSPs had been demonstrated. The deadline in respect of 2010 was 30 June, either manually or electronically. In future only online submission would be accepted. On 04 June he had been present at the Durban session of the TETA Roadshow, when the National Skills Development Strategy covering the period 2000-2016 had been outlined. There was no doubt that training in South Africa was being reshaped. In future employers would be able to claim only 40% in terms of monetary grants. The deadline for submission of claims for discretionary grants was 31 July, but criteria had yet to be communicated.