LATEST LOGISTICS AND FORWARDING NEWS

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1 LATEST LOGISTICS AND FORWARDING NEWS FRANCE - Air France will service Shanghai by Airbus A 380 as from the 2 nd September - Project to develop a new logistics zone at Dunkirk - Eurotunnel will not bid to run two ports INDIA - 2 major companies have asked government to impose customs tariffs - Multinationals are increasingly entering the country -US $ 100 million to be invested by India in the port of Chabahar in Iran MADAGASCAR - Air Madagascar will open a new agency in Marseille - Turkish Airlines will service Madagascar -About a dozen projects will be initiated at Ehoala park

2 MAURITIUS - New challenges face the export of sugar - Direct flight between Mauritius and Peking - Europe represents over 60% of the island s exports MOZAMBIQUE - 18 engines to power a plant to produce electricity from gas - East Africa could become a big exporter of liquefied natural gas -Launching of new Mozambique Express Service REUNION ISLAND - Dockers on strike at the beginning of May - 58 % of consumers prepare themselves to reduce their consumption in the coming months - Air Austral may open a subsidiary company, Ylang Express in Mayotte OTHER PARTS OF THE WORLD - CSCL intends to acquire 5 triple-e containerships - Record scrapping of less fuel efficient vessels - MSC will introduce PSS on cargo from Asia to the Mediterranean and Black Sea countries

3 LATEST LOGISTICS AND FORWARDING NEWS FRANCE Air France will service Shanghai by Airbus A 380 as from the 2 nd September As from the 2 nd September, Air France will become the first European airline to service Shanghai, the economic capital of China with a very high capacity plane, the Airbus A380, at a frequency of 3 flights per week. Air France offers 27 flights per week to Shanghai-Pudong airport as from Paris-Charles de Gaulle airport, of which 13 flights are operated on a codeshare basis with China Eastern Airlines. Project to develop a new logistics zone at Dunkirk The port of Dunkirk has presented to the press its project for the development of a new logistics zone, the Dunkerque Logistique International (DLI) Sud, which will require investments of 200 million euros square metres of warehousing are planned, including a system for the storage of containers in automated units, an innovation in France and a multimodal terminal with 18 km of railways. DLI Sud will be devoted to the handling of dangerous goods. Eurotunnel will not bid to run two ports Eurotunnel has announced that it will not bid to run the ports of Calais and Boulogne-sur-Mer. As a result, the incumbent operator, the Côte d Opale Chamber of Commerce, will be the only candidate.

4 INDIA 2 major companies have asked government to impose customs tariffs Jindal Saw Ltd and Indian Seamless Metal Tubes Ltd, which produce more than half of India s iron and steel pipes and tubes, saw their profits drop by more than 75% during financial year The two companies have asked the Indian government to impose customs tariffs on imports coming mainly from China and Italy so as to protect the domestic industry from imports. According to the press, India may ask the World Trade Organisation the authorisation to use temporary tariffs if there is a real threat of damage to the country s industry due to a high increase in imports. India s annual iron and steel production capacity amounts to tonnes. Multinationals are increasingly entering the country India s annual retail market is estimated at US $ 500 billion and it is growing at 20 percent per year. Multinationals are increasingly entering the country following Wal-Mart and Ikea They had to struggle to obtain the required permits. For example, more than 40 are needed to open a supermarket. US $ 100 million to be invested by India in the port of Chabahar in Iran India has expressed its intention to invest an initial amount of US $ 100 million in the development of the strategically-located port of Chabahar in Iran so as to gain access to land-locked countries of the region.

5 MADAGASCAR Air Madagascar will open a new agency in Marseille Air Madagascar will open a new agency in Marseille before the beginning of the month of June. The aviation company aims at increasing its market share in France through this agency. Air Madagascar which currently schedules a direct weekly flight between Antananarivo and Marseille, has set as objective to double that frequency next year. The Malagasy air carrier has changed its strategy and taken the decision to reduce the frequency of its flights In the Indian Ocean region to focus on long haul flights. Turkish Airlines will service Madagascar Regular flights between Antananarivo and Istanbul might begin as from the month of December or at the beginning of next year. The air carrier Turkish Airlines will service Madagascar so as to reinforce the partnership between the 2 countries especially in the fields of economic exchange and tourism. About a dozen projects will be initiated at Ehoala park About a dozen projects will begin their construction works in June at Ehoala park which covers a total surface area of 440 acres. The deep water port of Ehoala located nearby with its draught of 16 metres, makes the projects attractive to investors.

6 MAURITIUS New challenges face the export of sugar The European Union may bring an end to its sugar quotas as early as 2017 and according to Ecobank, this may promote sugar trade to African countries as several of them import from Brazil. The EU council which represents the governments of EU member states, expressed its wish to stop preferential access from African, Caribbean and Pacific countries in Most of the sugar production of Mauritius is exported to the EU. If the ban is effected, and European producers increase their production, we will be crowded out of that market, said Devesh Dukhir, chief marketing officer of the Mauritius Sugar Syndicate. Direct flight between Mauritius and Peking Air Mauritius will start to operate as from the 6th July 2013, a direct flight between Sir Seewoosagur Ramgoolam airport and Peking. The Airbus A will take off from Mauritius on Saturday at 13 h 40 to land the next day at 5 h 45, and it will leave China on Monday at 00 h 45 to come back to Mauritius at 8 h 45. Europe represents over 60% of the island s exports The Vice-Prime Minister and Minister of Finance and Economic Development said that the Mauritian economy continues to remain fragile as Europe which represents over 60% of the island s exports, is hit by recession.

7 MOZAMBIQUE 18 engines to power a plant to produce electricity from gas The Finland-based company Wärtsilä will supply 18 engines to power the Central Termica de Ressano Garcia plant to produce electricity. The power plant is owned by South-African firm Sasol New Energy and the Mozambique state utility, Electricidade de Moçambique. It will run exclusively on gas coming from the Pande and Temane fields. The power plant is expected to be completed by May 2014 and will help meet the country's increasing demand for electricity. It will be the largest power plant with gas engines to be installed in Mozambique and the second largest one in Africa. East Africa could become a big exporter of liquefied natural gas The British gas firm BG Group said that East Africa could become a big exporter of liquefied natural gas especially as gas fields have been found off the coasts of Tanzania and Mozambique. However, BG Group added that large facilities need first to be built to enable these developments. The Algerian state energy firm, Sonatrach has entered into talks to purchase a stake in the offshore gas projects of Mozambique which are operated by Italian companies Eni and Anadarko Petroleum Corporation. Launching of new Mozambique Express Service A new weekly Mozambique Express Service ("MZX") will be launched on the 7 th June. It will be operated by 7 vessels of company PIL with a slot-sharing agreement with MOL. The new MZX will have a rotation of 49 days and will cover Singapore - Maputo - Beira - Nacala - Singapore.

8 REUNION ISLAND Dockers on strike at the beginning of May The port of Reunion island has been affected by a dockers strike at the beginning of this month of May. The dockers were protesting against the decision of the firm which handles goods at Port Reunion, to have fired 19 employees and transferred employees to another organisation. 58 % of consumers prepare themselves to reduce their consumption in the coming months A survey carried out by the opinion poll institute Mediaprism on the purchasing power, has shown that 77% of the French consumers are expecting another drop in their purchasing power in 2013 and that 58% of them are preparing themselves to reduce their consumption in the coming months. The inhabitants of Reunion island note that the prices of common consumer goods increase more rapidly than in France. Air Austral may open a subsidiary company, Ylang Express in Mayotte Air Austral may open a subsidiary company, Ylang Express in Mayotte so as to use it as its base of operation for one of its planes, an ATR.72. The plane may service before the end of this year under Ylang Express, Comoros island and Madagascar from Mayotte.

9 OTHER PARTS OF THE WORLD CSCL intends to acquire 5 triple-e containerships The biggest container shipping company of China, CSCL intends to acquire 5 triple-e containerships. It will become the second carrier after Maersk Line to operate the huge TEU vessels. CSCL said that the new ships will contribute to raise its core competitiveness. A triple-e ship costs around US$140 million. Three South Korean shipyards (Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering) are reported to have submitted their bids. Record scrapping of less fuel efficient vessels According to Greek dry bulk shipper Navios Maritime Partners, scrapping of older and less fuel-efficient vessels, could exceed 30 million deadweight tonnes in Since the beginning of the year 2013 up to the 18 th April, around 8.7 million deadweight tons had already been scrapped MSC will introduce PSS on cargo from Asia to the Mediterranean and Black Sea countries Mediterranean Shipping Company (MSC) will introduce as from the 1 st June, a Peak Season Surcharge (PSS) of US$ 700 per TEU from Asia to all Mediterranean countries (excluding Turkey, Syria and Black Sea), Adriatic and North Africa. To Turkey, Syria and Black Sea, the surcharge will be US$ 500 per TEU.

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