Bidvest to invest R200m in multiproduct terminal

The Bidvest group is planning to invest R200-million over the next 18 months to expand capacity at its Durban multiproduct terminal. Speaking at the release of the group’s 2010 annual report, Bidfreight CE Anthony Dawe said the facility handled products such as specialised coal, manganese and copper concentrate. The investment is focused on growing manganese exports, which doubled in the 2010 financial year, ended June 30. Transnet in its annual report also referred to the growth in manganese exports, with the main export terminal in Port Elizabeth being too small to cope with the demand. Transnet is looking at building a new terminal either in Richards Bay or Ngqura. The R200-million Bidvest investment will see total commodity capacity through the Bidfreight Durban facility increase from threemillion tons a year to fivemillion tons. Bidvest Freight did well in a difficult year, improving trading profit by 3.1% to R794.3 million (2009: R770.7 million), according to the report. This improvement was achieved “despite a 14.5% revenue decline to R15.9 billion (2009: R18.6 billion). The revenue mix improved as the lost revenue was low-margin clearing and forwarding business,” said the company. Island View Storage “put in a good performance,” and “excellent results” were achieved by South African Bulk Terminals. Exports of forest products, steel and imported bulk products contributed to a “record year” at Bidfreight Port Operations. Capital expenditure of R503-million included investments in new tank storage facilities in Richards Bay, and a South African Container Depot (SACD) freight facility in Cape Town. Rennies Distribution Services “produced a strong profit turnaround as the benefits of cost control and restructuring were realised,” said the company. On the minus side, a “significant fall in demand for imported consumer products impacted clearing and forwarding and container handling”. Restructuring of Safcor Panalpina, “was necessary as billings to customers dropped, exacerbated by lower interest rates and a strong rand”. SACD Freight “performed well” by containing costs as imported container volumes fell. Stringent cost control and cash management contributed to a good result at Marine. Lease conditions for Island View Storage facilities in Richards Bay and Bulk Connections in Durban were renegotiated with Transnet. The K Line agency business within Rennies Ships Agency was reconstituted as a joint venture. Looking ahead, Bidfreight says the demand for bulk commodities “is expected to remain high”. However, “continued pressure is anticipated across imported volumes of consumer products”.