Construction equipment compensates for slower car market

SIGNIFICANT GROWTH in the movement of construction and heavy equipment sounded a positive note for Hoegh Autoliners last year, compensating somewhat for the slower car market. “Compared to the substantial increases in volumes to South Africa over the past three years, 2007 saw moderate growth,” said MD Per Folkesson, “due mainly to the slow-down in car sales.” The line transports some 130 000 CEUs (Car Equivalent Units) to South Africa annually from the North West Continent and UK while some 70 000 CEUs are shipped out of South Africa to the Far East and Oceania. “In 2008 we’re expecting moderate growth to South Africa but stronger growth into the Oceania region out of NWC and UK.” The Europe to South Africa, Indian Ocean and Oceania service provides an average of four sailings a month with fixed load and discharge ports – seven load ports in NWC and UK, three discharge ports in South Africa and the Indian Ocean and six in Oceania. Folkessen expects the service pattern to continue, at least for the next three years. “The port range may however see some minor changes depending on new and emerging markets. Although as a shipping line we look at rationalising port range as much as possible to improve round voyage times, there are certain limitations on what we can do due to customer demands and infrastructure limitations in existing ports.” Growing the fleet is however a constant. “We calculate that with current new buildings on order and our new tonnage cooperation with Maersk, which will see their entire ro-ro fleet entering our commercial operation over the next couple of years, 4.5-5 new vessels will enter our operation per calendar year.” In addition, 12 of the line’s current larger ships will be lengthened by 30m, increasing their capacity by some 1 300 cars. “This project begins this month (February) and will continue for about 18 months.”