Emerging African middle class generates shipping growth

Growing volumes of consumer goods and foodstuffs into West Africa are evidence of a “new, emerging African middle class” that is “saving and consuming more,” according to Yann Alix of the SEFACIL Foundation. Writing in the newsletter of the United Nations Conference on Trade and Development (Unctad) newsletter, Alix says there are also other positive developments for shipping. “Public sector reforms to support SMEs are under way, and international investors are rehabilitating transport networks and supporting the deployment of manufacturing and industrial activities. “Urbanisation and modernisation of agricultural practices is happening fast. The favourable demography suggests potential for greater production, processing and consumption.” Alix sees growing volumes of containerised maritime trade on routes linking Africa to Europe and Asia as “a concrete and visible example of these positive movements”. Since the mid-2000s, the trade volume on the Asia/ West Africa route has been comparable with historical trade between the former East European countries and the ports of West and Central Africa. Container trade grew by 5.5% between 2000 and 2008 and is forecast to increase another 6% by 2013, implying that 2.9-3.2 million containers will be transiting between Africa/Asia and Africa/ Mediterranean-European markets. The growth in container traffic encourages the renewal/re-positioning of capacities, leading to an increase in the number of ‘AfricaMax’ ships able to handle 2500-4500 TEUs, according to Alix. There is also a “unique case of massification under way in the African market which consists of direct loops to main West African gateways such as the ports of Abidjan and Lagos, subregional calling and feeder services that collect freight from smaller port cities, and connections through transcontinental hubs between African markets and East- West markets”. Liner business with Africa remains under the control of top European Shipping Lines, according to the report. Maersk Line and CMACGM have close to 60% of the market share. MSC follows, with solutions that include feeding from Las Palmas and Valencia in Spain, the report states. Maersk Line uses Tanjung Pelepas and Tangier Med/ Algeciras to cover all container terminals in West and Central Africa. CMA CGM combines Tangier Med and Port Kelang in Asia to provide coverage and frequency of services. “Transhipments in South Africa complete shipping relationships between West and East African markets (including the Indian Ocean). “Only Abidjan, Dakar and more modestly Pointe-Noire have some feeder services in order to assume the links with small markets and/ or countries where port facilities are still insufficient,” according to Alix.