LATEST LOGISTICS AND FORWARDING NEWS

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LATEST LOGISTICS AND FORWARDING NEWS FRANCE - Partnership between CMA CGM and OGEU Group, the 4 th largest water bottler of France - Marmara Express line - Air France will schedule new flights to Marrakech (Morocco) and Porto (Portugal) INDIA - Major disruptions in the supply chain of smartphones and telecom devices feared - Exports of curry leaves to the European Union will resume - New freight rates applied by CMA CGM vessels MADAGASCAR - Three firm offers to become the strategic partner of Air Madagascar - Boosting commercial exchanges between India and Madagascar - A maritime link between Toliara (Madagascar) and Durban (South Africa)

MAURITIUS - The frequency of flights on the up - The Mer Rouge Oil Storage Terminal (MOST) project - Growth of container traffic at Port Louis in 2016 MOZAMBIQUE - A cashew processing factory has been set up - 64 of the 109 state-owned companies to be sold or liquidated - MOL has introduced a General Rate Increase REUNION ISLAND - Flights between Reunion Island and the United States via France in the pipeline - Major developments for Air Austral - A new entrant between France and Reunion Island OTHER PARTS OF THE WORLD - The US Federal Maritime Commission has given its approval to The Alliance - Eurotunnel applies higher-than-normal annual increase of its tariffs for freight trucks - A freight train between Yiwu, China and London

LATEST LOGISTICS AND FORWARDING NEWS FRANCE Partnership between CMA CGM and OGEU Group, the 4 th largest water bottler of France The French shipping company CMA CGM has entered into a partnership with OGEU Group, the 4 th largest water bottler of France. A joint-venture company has been created for the exclusive distribution outside Europe of OGEU waters such as Beaupre, Ogeu, Plancoet, Chevreuse, Saint Lambert, Pyrenea, Sainte Alix. CMA CGM will first target China and afterwards, Asian countries where the demand for quality water is rising. The shipping company will fill some of its containers on the routes between France and China with water. Marmara Express line CMA CGM has launched a new Marmara Express line which directly links Turkey, Spain, France, Greece and Italy. The port of Marmara is located in the north of Turkey and the vessel reaches after 10 days the port of Fos-sur- Mer in Marseille, France, making the transit time highly competitive. Air France will schedule new flights to Marrakech (Morocco) and Porto (Portugal) As from the 26th March, Air France will operate three new weekly flights to Marrakech (Morocco) and 3 flights per week to Porto (Portugal) on board an Airbus A320.

INDIA Major disruptions in the supply chain of smartphones and telecom devices feared As from the 1st April 2017, the Government of India plans to run security checks on all imported smartphones and network gear that will be used in mobile telephony networks. Telecom companies of India as well as importers of smartphones fear that this may cause major disruptions to the supply chain and delay the introduction of the latest models of devices on the Indian market. India lacks world-class screening labs of the required scale. Last year, over 8 billion US dollars of telecom devices were imported. Exports of curry leaves to the European Union will resume After a ban of 3 years, India will be able to resume its export of curry leaves to the European Union. The curry leaves will now comply to quality checks by laboratories and the Agmark certification. Previously, India exported 120 000 tonnes of curry leaves to the European Union. In 2013, the European Union prohibited these imports due to concerns about the high level of pesticide residue. New freight rates applied by CMA CGM vessels Since the 16th January, CMA CGM has revised its rates for the transportation of containers from India to all North Europe and Mediterranean ports.

MADAGASCAR Three firm offers to become the strategic partner of Air Madagascar Three firm offers have been received by Air Madagascar from potential partners (including Air Mauritius, Air Austral, Airlink, Kenya Airways and Ethiopian Airlines) which are interested to acquire 49% of its share capital. The remaining 51% will remain in the hands of the Malagasy Government. The bidders will be gauged on the proposals that they will implement to sustain the future growth and reposition of Air Madagascar. The World Bank as well as the consultants IOS Partners Inc and TroyAvi Aviation will support the directors of the air carrier in the selection exercise. Boosting commercial exchanges between India and Madagascar A delegation from the Confederation of Indian Industries visited Madagascar last month to boost trade between the two countries. The Embassy of India in Madagascar stated to the press that the commercial exchanges between Madagascar and India amounted to 339 million US dollars per year, which was well below the actual potential that could be achieved. A maritime link between Toliara (Madagascar) and Durban (South Africa) A Memorandum of Understanding has been signed between the Port, Maritime and Fluvial Agency of Madagascar and the Free Port Group of South Africa. That group will operate a ferry to establish a maritime link between the port of Toliara in Madagascar and that of Durban in South Africa.

MAURITIUS The frequency of flights on the up Air Mauritius will introduce a 2 nd flight per week between Mauritius and Guangzhou (China) as from the 7 th July 2017. Furthermore, Air Seychelles has expressed its wish to increase the frequency of its flights to Mauritius from 5 to 7 per week. The Mer Rouge Oil Storage Terminal (MOST) project Mauritius is located on the South-South trade route and more than 30 000 vessels use this maritime zone each year. The island wants to fuel at least 20% of this market and has just initiated the Mer Rouge Oil Storage Terminal (MOST) project. It is a public-private joint venture with four international petroleum companies (Engen, Indian Oil, Total and Vivo Energy). The petroleum terminal will require investments of Rs 600 million and will start operating at the end of 2017. It will comprise five tanks of 5 000 metric tonnes each. Growth of container traffic at Port Louis in 2016 According to the Mauritius Ports Authority, the number of containers handled during 2016 is estimated at 388 000 TEUs compared to 361 000 TEUs the previous year. Furthermore, it is estimated that 122 000 TEUs had been transhipped while 105 000 transited through Port Louis in 2015. The productivity at Port Louis has turned around 20 moves per hour for each travelling gantry crane in 2016.

MOZAMBIQUE A cashew processing factory has been set up The decision of the Mozambican Government to impose on exports of raw cashew, a surtax ranging between 18 and 22 per cent, is having a positive impact on the growth of the cashew processing industry. A cashew processing factory has been set up. It belongs to Korosho Mocambique Lda. of the Export Trade Group (ETG) owned by Indian and Mauritian business persons. The factory currently has 25 machines which can process 2 500 tonnes of nuts a year. It hopes to increase by the end of year 2020, its annual processing capacity to 10 000 tonnes. 64 of the 109 state-owned companies to be sold or liquidated The Government of Mozambique will sell or liquidate 64 of the 109 stateowned companies or in which it has shares. The remainder will be restructured. 2016 had been a difficult year for Mozambique due to the devaluation of its currency, natural disasters, a drop in foreign direct investment, falling prices of exported products and an average inflation rate of 15%. MOL has introduced a General Rate Increase The Japanese shipping company MOL has applied since the 1st January, a GRI (General Rate Increase) of US $ 300 per TEU on all cargo to Mozambique.

REUNION ISLAND Flights between Reunion Island and the United States via France in the pipeline The air carrier of Reunion Island, Air Austral has applied to the US Department of Transportation (DOT) to obtain a Foreign Air Carrier Permit (FACP) so that it can begin commercial flights to the United States. Air Austral plans to use Boeing 777s and Boeing 787s planes to operate charter flights via France to the United States for transporting passengers and freight. According to aviation specialists, three destinations in the United States will be targeted in the first phase. Major developments for Air Austral Air Austral will resume flights between Reunion Island and Marseilles, France as from the 12 th October 2017. Two flights per week are planned in code sharing with the French air carrier XL Airways. Furthermore, XL Airways will introduce a direct flight between St. Exupery airport in Lyon and Reunion Island, starting in the second half of this year. A new entrant between France and Reunion Island As from June 2017, the airline French Blue which belongs to the Dubreuil Group, will start flights between Paris and Roland Garros Airport in Reunion Island. The air carrier intends to schedule eight flights per week with two Airbus A330 planes.

OTHER PARTS OF THE WORLD The US Federal Maritime Commission has given its approval to The Alliance The Federal Maritime Commission (FMC) of the United States has given its approval to The Alliance which regroups Hapag-Lloyd, K Line, MOL, NYK, and Yang Ming shipping lines. Members of The Alliance are allowed to share vessels, charter and exchange space on each other's vessels, and enter into co-operative working arrangements. However, the FMC agreement covers only trade routes between the US and other countries. Moreover, the FMC agreement does not deal with cargo transported by the carriers in The Alliance and not originating from the United States. Eurotunnel applies higher-than-normal annual increase of its tariffs for freight trucks Due to the growth of freight traffic, Eurotunnel has implemented a higherthan-normal annual increase of its tariffs for trucks in 2017. During the past years, the annual price rise amounted to the rate of inflation plus 1%. For 2017, the tariffs for trucks and smaller commercial vehicles have shown increases varying between 1.7% to nearly 3% compared to the rates of last year. A freight train between Yiwu, China and London Since the 1 st January 2017, a freight service by rail has been launched between the city of Yiwu (in the province of Zhejiang, China) and London. The freight train is operated by Yiwu Timex Industrial Investment, a crossborder trade service provider based in China.