Collaboration and sustainability key to region’s bulk sector

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Development Community (SADC) region’s multibillion- dollar commodity sector remains largely undervalued, constrained by outdated infrastructure, fragmented logistics and limited community integration.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.” He said Durban, Richards Bay and Saldanha remained the leading bulk hubs in the region. “With Transnet’s ongoing infrastructure investments, growing private sector interest, and a reported 6% year-on-year increase in bulk tonnages from 2023 to 2024, Richards Bay is fast emerging as a strategic focal point. Its advantage stems from its proximity to mineral- rich regions and deep-water port facilities.” Commenting on current trends in the bulk commodity sector, Ngcobo said sustainability was an increasing priority. “It’s no good having the mining and agriculture sectors championing it alone. The rest of the value chain will have to adapt accordingly. This has led to some innovative solutions by the logistics sector.” He added that logistics providers must align with sustainable mining practices. “As global demand for bulk concentrates rises, this will influence logistics operations – particularly back-of-port handling and the need for containerised cargo. Smaller miners are targeting zero double-handling, minimal contamination, and dust control to protect margins. The logistics sector needs to support that approach,” Ngcobo said. LV