Beluga demise squeezes project cargo capacity

Capacity has become a major concern for the South African project cargo industry following the liquidation of a shipping line that regularly called at the country’s ports. According to Sunil Kalu, business development manager for African Project Logistics (APL), the projects division of logistics company ICM Group, the liquidation of Beluga shipping lines has resulted in a lack of booking space for project cargo recently. “With only a few project vessels coming into South African ports, capacity is a problem and booking space when commodities are ready to ship can be difficult,” he told FTW. “Also many of the charter companies have a monopoly in setting the price tag. This means that the site delivery times are increased and project duration is increased.” On the reverse side of the coin there are also many projects where infrastructure delays have caused critical components that are imported to be offloaded at a storage location, causing double handling and not only increasing cost but also risk. “It is critical that we address these challenges as we see more international competition in the project cargo arena as the world demand for mineral commodities, of which Africa is rich, increases.” Kalu says the success in the project cargo industry is reliant on addressing these challenges. “But it is also essential to quote a market-related realistic price when tendering and to have the right team on board who technically understand the cargo.” This is further enhanced by having internal operational and project management processes that are in line with clients’ and end clients’ expectations – along with a bullet-proof quality control system where risk identification and mitigation is crucial. “Experience makes all the difference – along with planning. At least two thirds of our time is spent upstream planning long before the cargo is dispatched from the factory. Being ready for any eventuality is key.”