Commodity slump puts on pressure

The slump in commodity business has put major pressure on SADC Freight’s Johannesburg operation where expansion opportunities have been on the radar screen. “There is some land available but with the slump that’s hit the mining industry we’re putting it on hold for now,” said MD Graham Peinke. The Johannesburg branch has played a big role in the export of mineral concentrates out of the DRC and copper out of Zambia – it’s been used as a major hub for exports coming out of Africa, but the slump in demand from China in particular has seen most players adopting a wait and see attitude. According to Peinke, business until now has performed extremely well. “But to the end of the year we anticipate there will be pressure on margins and our revenue will come under pressure because our cost base is relatively high.