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Box shortage puts squeeze on warehouse capacity in East Africa

09 Sep 2021 - by -
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The global container shortage has put severe pressure on warehouses in East Africa, according to Neil Stals, general manager of Independent Beira Logistics Terminal and Services (IBLT).“We have had to stay ahead of the curve through innovative thought process in order to continue to service long-standing clients. Space is at a premium,” he told Freight News. “We have also had to relook at ways to combat the port congestion – such as shunting during off-peak hours. New legislation is also adding costs, which clients are not happy to bear, so we need to continually look for avenues to protect margins and keep the Beira Corridor competitive.”According to Stals, IBLT has seen the need for expansion in recent years thanks to consistent volume growth.“We have invested in a 30 000-sqm property, extending our premises to allow for an increase in cargo through our facility. We have penciled in a new 13 000-sqm warehouse that gives us f lexibility in our service offering.”The company has also partnered with Imperial Logistics to enhance its presence in the Beira Corridor. “This gives us entry points into new sectors of the market such as healthcare and consumer packaged goods,” explained Stals.Now, more than ever, diversity is important in the market and on corridors such as Beira.Commenting on logistics trends in the region at present, Stals said with the swings in commodity pricing, as well as currency f luctuations, more cargo was being positioned close to export ports. “This gives the client the added advantage of strategically positioning their commodities, should they need to export cargo at the right price.”With the growth seen over the past few years, and with volumes set to increase into the future, expansion and development of port operations is key. “Beira is well positioned to support the hinterland exports, and, as transit times are faster, traders can get their cargo on the water quicker. This helps any business with cash f low and is an opportunity for any bulk trader through the corridor. “Stals said whilst the shortage of containers had somewhat slowed exports, IBLT had not seen any downturn in cargo through its facility. “When the empty positioning is resolved, we expect a large increase in exports through Beira. Peak season is in full f low, with a lot of the seasonal cargo starting to come through IBLT already. We are really excited about the opportunities for Beira. The value proposition we offer, when compared to other export ports, is more competitive than originally imagined.” We have penciled in a new 13 000-sqm warehouse that gives us flexibility in our service offering.– Neil Stals“

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