Eliminating ‘empty’ leg helps reduce rates

Eliminating an empty southbound leg from northern Mozambique has helped reduce rates for exporters out of South Africa, says Ruan van der Westhuizen of Namgola Logistics. We’re involved with various large projects in Mozambique with roadfreight to the northern parts (ie, Pemba, Nacala, Nampula, Tete etc) forming the bulk of our business. “A big plus for us is the contracts we’ve secured on southbound cargo, and as a result of this we can offer our clients (the exporters) much better rates,” he says. Securing southbound cargo has been made possible through the expansion of the company’s network in northern Mozambique. “Road can be a slow option and it’s therefore vital for transporters to have the expertise and knowledge of how to deal with the various challenges and problems. “The devil is in the detail, and one must plan and be prepared for any eventuality. This means having the right people in the right place, and for this reason we’ve set up an integrated network of agents, depots and workshops in Mozambique all the way to the northern parts,” he says. Goods that are moving include dry foods, telecommunications equipment, chemicals, as well as construction and mining equipment. “Two of the biggest threats to economic growth are high fuel costs and deteriorating road conditions in Africa, which will have a big impact on transport costs. Because we have secured large contracts on southbound cargo, we can keep empty kilometres to a minimum and ultimately keep transport costs low,” he says. Van der Westhuizen is bullish about prospects for Mozambique. “Mozambique does have its challenges, but the opportunities are far greater. We predict that export volumes into Mozambique will keep on growing in 2013 and beyond. “There is so much development at present. From coal projects to power stations to upgrading the road infrastructure and networks. “Mozambique expects to invest US$350 million to build 500 kilometres of road in the next few months. “Chinese trade with Africa alone is to exceed $110bn and Africa is making the effort to be able to improve its trade by addressing its infrastructure and communication backlogs. “Africa is the drawcard for investment, and South Africa is the gateway,” he says. INSERT ‘Mozambique expects to invest US$350 million to build 500 kilometres of road in the next few months.’