Additional routing options boost export access

Africa is entering a new project cargo investment cycle, with major developments in LNG, mining, renewable energy and industrial infrastructure driving demand for heavy-lift and specialised logistics. As governments and private investors commit billions of dollars to projects across the continent, the sector is preparing for a pipeline of increasingly complex cargo movements. “Africa is once again becoming the focus of resource development, from bulk projects on a truly massive scale, like the Guinean iron ore developments, to the almost ‘boutique’ but strategically important rare earth and platinum group metals (PGM) projects,” said Athol Emerton, managing director of LBH Mozambique. Speaking to Freight News, he said several major infrastructure developments were expected to reshape project cargo flows. “The Lobito Corridor in Angola, renewed momentum on the Nacala Corridor and the continued development of Namibia’s transport corridors are creating additional routing options for project cargo while improving access to export markets for bulk minerals.” South Africa’s terminal upgrade programme and the long-awaited introduction of private rail operators are also boosting confidence. In Mozambique, the planned expansion of the Port of Maputo and growing cargo volumes along the Maputo Corridor demonstrated the value of integrated corridor development, said Emerton. Similar initiatives are under way in West Africa, where multiple corridor projects are expected to unlock future project cargo movements and support mineral exports. “I am really excited about the future project scenario in Africa, although it does need careful focus and country- specific knowledge. We have been involved in the LNG projects in Afungi since handling the first exploration vessels back in mid- 2008, and it has been rewarding to support such a broad range of project logistics as the development has progressed. It is arguably the biggest project under way in Africa,” he said. That optimism is reflected in growing project cargo activity across the continent. According to Emerton, volumes are increasing as investment gathers pace. “There are only two frontier continents left with real scope for resource exploration – Africa and Antarctica. And it’s far too cold down in the latter, so let’s focus on warm, friendly Africa!” he quipped. The sector, however, is not without challenges. “In Africa, logistics for these massive projects demands a practical response: corridor capacity, port productivity, customs efficiency and multimodal connectivity all need to improve together. This means dialogue between any country’s bureaucracy and resource project investors needs to be open and pragmatic at all times,” said Emerton. “I fear there is often great political and investor enthusiasm to unlock Africa’s large resources with projects, but the momentum slows at a practical level through complex bureaucracy, from customs regimes to heavy-lift equipment permitting.” Practical constraints often extend well beyond ports and terminals. A country may have a modern, efficient port, but a damaged bridge several hundred kilometres inland or ageing road infrastructure can quickly become the weakest link in the logistics chain. Successfully executing complex project cargo movements therefore requires detailed local knowledge and careful planning across the entire transport corridor. Emerton said demand for breakbulk and project cargo logistics would continue to grow as infrastructure improved and delayed projects moved forward over the next two years. LV