The Southern African Development Community (SADC) region’s multibillion-dollar commodity sector remains largely undervalued, constrained by outdated infrastructure, fragmented logistics and limited community integration.
According to Mndeni Ngcobo, strategic projects and marketing manager at SA CARGO, recent growth and ecosystem-style planning across private and public sectors over the past 36 months have been critical to unlocking the region’s potential.
“From an infrastructure development and logistics point of view, what occurs from the lower to higher east corridor of southern Africa – from Gqeberha and Richards Bay to Durban and Maputo – will transform both local and international commodity markets for decades,” he told Freight News.
“Efficient access to key commodities such as chrome, coal, manganese and iron ore could position southern Africa as a cornerstone for nations pursuing ambitious industrial development, particularly in the Far East.”
He said there had been a notable change among shipping lines and traders, both of which had historically maintained an arm’s-length relationship with logistics operations in terms of day-to-day operations.
“We are getting more collaborative requests from such entities, which is a step in the right direction for the bulk market as it will enable us as an industry to provide more cost-effective solutions and a more modern, front-end-focused and streamlined customer experience.”
According to Ngcobo, operators in the ‘pit-to-port’ or ‘plant-to-port’ sectors who want to remain relevant will have to consider mergers and acquisitions across their value chains, develop strategic partnerships, or build lean, innovative divisions internally.
“Over the past three to five years, SA CARGO has applied some of these strategies through diversified offerings, including siding, inland terminal, rail and port services.”
- Read the full article in our Freight Features edition on ‘Bulk Cargo’, available on Friday, September 12.
