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Eliminating ‘empty’ leg helps reduce rates

09 Nov 2012 - by Ed Richardson
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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.’

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