Auto industry drives seafreight service modifications

CONTINUED INVESTMENT in SA’s automotive manufacturing industry – most recently by the likes of Ford – is evidence that the industry remains globally competitive. But it relies on buy-in from every link in the chain to maintain that competitive edge. “At Maersk Line we constantly review our product offering to provide solutions for customers on the ocean leg as well as landside,” says national sales director, Mark Cairns. The rescheduling of the Safari service on the Far East route late last year, for example, was largely in response to the needs of this strategic industry. “We also continually try to flex our services,” says Cairns. “For example, instead of going into the Durban container terminal we have looked at Pier 1. We understand the nature of the industry and its critical time constraints.” Imports from the Far East and South America make up the majority of Maersk’s automotive traffic. “We’ve seen substantial growth in this sector and expect to see incremental growth in 2008 based on developments on which we have been working. “The increase in interest rates and the new National Credit Act are affecting local demand – but because we are breaking new ground our growth is exponentially different, coming from a lower base.” The line has structured its operations into client teams to specifically cater for the auto segment, and in some cases these are located at the client’s premises to facilitate the flow of information and streamline communication. Landside services include the establishment of an off-dock depot which Maersk manages on behalf of the client. “They own the land and assets and we put in landside infrastructure from a handling point of view.” In an industry as time-critical as automotive, bottlenecks at any point in the supply chain can spell economic suicide. “The main challenges remain landside infrastructure but we continue to work closely with the relevant authorities to bring players together to discuss potential bottlenecks and look for solutions. We are competing with a number of other producing countries and need to ensure that the auto industry in SA remains competitive in the global market.”