Congestion-related costs plague ro ro carriers

CLIVE EMDON
GROWING CONGESTION at the Durban car terminal is a major challenge facing ro ro shipping lines – delays that cost Höegh Autoliners millions of rands in excess, says marketing manager Carol Graham. Some 299 ro ro vessels called at the terminal in 2006 – an average of 25 vessels a month, says Graham. “Congestion contributed to substantial delays for the line last year and the cost element of these delays should be viewed in a very serious light.” The line has been calling at South African ports since 1993. During 2006 it shipped almost 1.9 million CEUs (car equivalent units) on a global basis. “Our trade routes via South Africa contributed around 12% or 261 000 CEUs to this volume.” Last year new vehicle sales in South Africa grew by 14.4% while exports grew by 29%, amounting to 180 000 vehicles. Höegh Autoliners shipped about 24% of this volume while the industry’s projected export volume for 2007 is 220 000 vehicles, she said. “Import volumes of fully built factory new cars, pickups and SUVs amounted to around 205 000 units in 2006 with the line carrying an estimated 47% of this volume.” All indications are that world production of factory new cars will continue to grow. “In 2006 world production reached about 65 million units and the projection to 2015 is that this figure will grow by approximately 38% or 25 million units to 90 million vehicles, an annual growth of 3-4%.” Historically about 15% of the production volume is exported overseas. In South Africa production volumes increased from 2005 to 2006 by some 17% with almost
614 000 vehicles being built here last year. Over the past three years the company has taken delivery of 11 new PCTCs (Pure Car Truck Carriers) and has a further 15 on order for delivery between 2007 and 2011. In addition, Höegh Autoliners and AP Moller-Maersk through its subsidiary Maersk Shipping Singapore, on January 24 entered into a co-operative agreement with their respective fleets of car carriers. As their current time charter commitments expire, Maersk Shipping Singapore’s fleet of 12 ro ro car carriers will enter this cooperation and will boost the fleet commercially operated by Höegh Autoliners from 55 to 67 vessels. “The new cooperation will provide increased capacity, faster transit times and higher frequency to meet customers’ requirements,” says Graham.