Warehousing developments are on the increase in Mozambique as more and more cargo moves through the Port of Beira.According to Kevin Hutton, general manager of Beira Logistics Terminals (BLT), cargo volumes are rising as more freight is being directed onto the Beira corridor due to the restrictions in many other ports due to Covid-19.
“Businesses have seen the potential for additional warehouses,” he said indicating that warehousing space had not kept pace with cargo volumes and more cargo would require more warehousing.
According to Hutton, there were also increased volumes in direct loading from quay side to the end customer. “This is done to try and reduce the warehousing costs, but it does have an impact on truck availability to load directly from port.”
A serious concern, he told Freight News, was the increase in competition where facilities were being built at a fraction of the going rate for proper developments. Often these facilities then don’t meet industry standards.
“These developments are putting pressure on the market, making it very difficult for reputable operators. By undercutting rates they are making it very difficult for everyone to remain profitable in what is an already tough market.”
Another challenge at present was port congestion and the lack of empty containers from shipping lines which was creating delays in cargo movements in and out of Beira.Hutton said BLT had commissioned new bagging machines for its facility.
“This will increase our capacity from 1200MT per day to 2400MT. We are always looking at ways to create efficiencies to offer a superior and reliable service.”