Company News in Brief
OR Tambo may run out of fuel in 7 days; Acsa, Natref scramble to prevent disruptions
The Airports Company of South Africa (Acsa) says the National Petroleum Refiners of South Africa (Natref) is implementing risk mitigation measures to prevent the disruption of jet fuel supplies to OR Tambo International Airport.
The measures come after a fire at at the Natref refinery on 4 January, Acsa said in a statement on Sunday. Acsa added that it was informed of the risk mitigation measures by the Fuels Industry Association of South Africa (Fiasa).
"Immediate intervention and risk mitigation measures are required to address the anticipated jet fuel shortage at ORTIA [OR Tambo International Airport] between 20 January and the expected delivery date of 27 January 2025," Acsa said. "Fiasa and Natref are collaborating with industry partners, including Acsa, to develop solutions by Tuesday, 14 January 2025. The primary focus is to ensure the continuous availability of jet fuel at ORTIA."
Acsa's statement said the broader South African fuel industry had been informed that the crude distillation unit (CDU) at the Natref refinery, which was damaged by the fire, is only expected to be back online by 21 February 2025. Nevertheless, the state-owned airports operator says it has sufficient jet fuel reserves to ensure availability at OR Tambo International until 20 January.
-FIN24
More delays as Durban port battles equipment shortage
Durban's Pier 2 Container Terminal is battling a shortage of straddle carriers, with new equipment to move and stack containers that will only be operational mid-month, according to national port operator Transnet Port Terminals (TPT).
In an advisory to customers on Tuesday, the port operator said that the shortage of equipment had hampered recovery operations and service delivery at the terminal due to intermittent breakdowns and inclement weather. This week, the South African Weather Service issued a level 8 warning of disruptive rainfall in the region.
"The operations team, in collaboration with the engineering team, has explored various options to expedite operations as much as possible. We anticipate that some machines will be back in operation by 18:00 today [Tuesday] to help further clear the backlog [...] We sincerely appreciate your understanding and continued cooperation during this period," TPT said in the letter.
It also said that components for four new straddle carriers at the port will be assembled and ready for operation by mid-January.
Operational challenges have also pushed South African ports to be categorised as some of the worst in the world according to the World Bank and rating agency S&P's port rankings for efficiency and competitiveness. According to the Container Port Performance Index, Cape Town, Ngqura, Port Elizabeth, and Durban fall into the bottom 20 of global port rankings for performance in 2023.
Meanwhile, Transnet's plans to upgrade the Pier 2 container terminal by appointing Filipino company International Container Terminal Services as its terminal operator have been halted by the courts.
-FIN24
Zambia's SEC sanctions Standard Chartered over China property bond mis-selling, source says
Zambia's Securities and Exchange Commission (SEC) has sanctioned Standard Chartered for mis-selling a Chinese property company's bonds to one of the bank's local wealth clients at the height of the Asian country's real-estate crisis, according to a source.
The source familiar with the matter told Reuters that the UK-headquartered bank, which is currently looking to sell its wealth and retail banking businesses in Zambia, was facing "enforcement action" for two breaches of SEC rules following a months-long investigation.
The first was that it had failed to disclose "material information" about the bonds it sold in March 2022. Those bonds, issued by state-backed Chinese developer Sino-Ocean, defaulted just over a year later and are now, like many in the sector, almost worthless.
In addition, the SEC found Standard Chartered had also used "exclusionary" contract clauses, which meant the client held all responsibility for the risks, which goes against Zambia's securities rules.
In a statement to Reuters, Standard Chartered said: "We respect the outcome of the Securities Exchange Commission in Zambia, however, in accordance with appropriate local procedures we will respectfully be exercising our right to appeal."
"We are fully aware of this matter, and we are reviewing the necessary details to clarify the situation. It is our priority at the Bank to ensure compliance with regulatory standards across all of our markets."
The SEC, which started its investigation of the case in April, said it was not able to comment on the matter when asked by Reuters. Under Zambia's Securities Act, Standard Chartered now has 30 days to lodge its appeal.
Zambia's SEC has the power to fine, or publicly or privately "censure or reprimand" lenders, although it can't formally order them to compensate customers for mis-selling.
Reuters wasn't able to establish what penalty the regulator is planning to impose on Standard Chartered.
The lender announced in November it was looking to sell its Zambian wealth and retail banking businesses alongside those in nearby Botswana and Uganda.
It has operated in Zambia for nearly 120 years making it the country's oldest bank.
It is currently reducing its overall footprint in Africa, however, having also sold its Tanzania business and subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone in the last couple of years.
-REUTERS
The Airports Company of South Africa (Acsa) says the National Petroleum Refiners of South Africa (Natref) is implementing risk mitigation measures to prevent the disruption of jet fuel supplies to OR Tambo International Airport.
The measures come after a fire at at the Natref refinery on 4 January, Acsa said in a statement on Sunday. Acsa added that it was informed of the risk mitigation measures by the Fuels Industry Association of South Africa (Fiasa).
"Immediate intervention and risk mitigation measures are required to address the anticipated jet fuel shortage at ORTIA [OR Tambo International Airport] between 20 January and the expected delivery date of 27 January 2025," Acsa said. "Fiasa and Natref are collaborating with industry partners, including Acsa, to develop solutions by Tuesday, 14 January 2025. The primary focus is to ensure the continuous availability of jet fuel at ORTIA."
Acsa's statement said the broader South African fuel industry had been informed that the crude distillation unit (CDU) at the Natref refinery, which was damaged by the fire, is only expected to be back online by 21 February 2025. Nevertheless, the state-owned airports operator says it has sufficient jet fuel reserves to ensure availability at OR Tambo International until 20 January.
-FIN24
More delays as Durban port battles equipment shortage
Durban's Pier 2 Container Terminal is battling a shortage of straddle carriers, with new equipment to move and stack containers that will only be operational mid-month, according to national port operator Transnet Port Terminals (TPT).
In an advisory to customers on Tuesday, the port operator said that the shortage of equipment had hampered recovery operations and service delivery at the terminal due to intermittent breakdowns and inclement weather. This week, the South African Weather Service issued a level 8 warning of disruptive rainfall in the region.
"The operations team, in collaboration with the engineering team, has explored various options to expedite operations as much as possible. We anticipate that some machines will be back in operation by 18:00 today [Tuesday] to help further clear the backlog [...] We sincerely appreciate your understanding and continued cooperation during this period," TPT said in the letter.
It also said that components for four new straddle carriers at the port will be assembled and ready for operation by mid-January.
Operational challenges have also pushed South African ports to be categorised as some of the worst in the world according to the World Bank and rating agency S&P's port rankings for efficiency and competitiveness. According to the Container Port Performance Index, Cape Town, Ngqura, Port Elizabeth, and Durban fall into the bottom 20 of global port rankings for performance in 2023.
Meanwhile, Transnet's plans to upgrade the Pier 2 container terminal by appointing Filipino company International Container Terminal Services as its terminal operator have been halted by the courts.
-FIN24
Zambia's SEC sanctions Standard Chartered over China property bond mis-selling, source says
Zambia's Securities and Exchange Commission (SEC) has sanctioned Standard Chartered for mis-selling a Chinese property company's bonds to one of the bank's local wealth clients at the height of the Asian country's real-estate crisis, according to a source.
The source familiar with the matter told Reuters that the UK-headquartered bank, which is currently looking to sell its wealth and retail banking businesses in Zambia, was facing "enforcement action" for two breaches of SEC rules following a months-long investigation.
The first was that it had failed to disclose "material information" about the bonds it sold in March 2022. Those bonds, issued by state-backed Chinese developer Sino-Ocean, defaulted just over a year later and are now, like many in the sector, almost worthless.
In addition, the SEC found Standard Chartered had also used "exclusionary" contract clauses, which meant the client held all responsibility for the risks, which goes against Zambia's securities rules.
In a statement to Reuters, Standard Chartered said: "We respect the outcome of the Securities Exchange Commission in Zambia, however, in accordance with appropriate local procedures we will respectfully be exercising our right to appeal."
"We are fully aware of this matter, and we are reviewing the necessary details to clarify the situation. It is our priority at the Bank to ensure compliance with regulatory standards across all of our markets."
The SEC, which started its investigation of the case in April, said it was not able to comment on the matter when asked by Reuters. Under Zambia's Securities Act, Standard Chartered now has 30 days to lodge its appeal.
Zambia's SEC has the power to fine, or publicly or privately "censure or reprimand" lenders, although it can't formally order them to compensate customers for mis-selling.
Reuters wasn't able to establish what penalty the regulator is planning to impose on Standard Chartered.
The lender announced in November it was looking to sell its Zambian wealth and retail banking businesses alongside those in nearby Botswana and Uganda.
It has operated in Zambia for nearly 120 years making it the country's oldest bank.
It is currently reducing its overall footprint in Africa, however, having also sold its Tanzania business and subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone in the last couple of years.
-REUTERS
