Expanding horizons – capacity on the rise

Reid Innovations has expanded its operations to handle bulk cargo, focusing primarily on bagging and exporting agricultural products such as maize and soybeans. According to Toni Reid, owner and managing director, the company has upgraded its bagging facility in Durban and can now bag up to 160 tons per day. “Plans are in place to expand our footprint, and we are set to duplicate our Durban operation in Cape Town in the coming year,” she said. The expansion comes as the southern African bulk cargo sector faces both challenges and opportunities. With trade volumes to neighbouring countries on the rise, Reid sees potential for increased exports, provided more sustainable trade agreements are negotiated. “In the short term, we are facing demand challenges, including trade policy uncertainties and stagnant cargo volumes. In the medium to long term, strategic investments in fleet modernisation and adaptability to changing trade dynamics will be key to navigating this evolving industry,” she said. From an agricultural perspective, the collapsed rail system remains a major obstacle. “Ongoing port and depot delays, as well as operational inefficiencies, continue to hamper the movement of bulk cargo. There are also concerns around theft and hijacking of bulk carriers,” Reid told Freight News. “Another challenge – not just in the bulk sector, but across logistics – is rising costs, whether for fuel, insurance, or vehicle maintenance.” She said opportunities for increased volumes, particularly cross border, remained. “While more sustainable trade agreements need to be negotiated with South Africa’s neighbouring countries, we believe there is room for growth and the chance to expand our business. The implementation of bagging and cleaning facilities close to main ports presents another opportunity, as do upgrades to port throughput and the privatisation of specific sectors.” Reid said that technology adoption would be critical for the local industry to remain competitive. “Digitisation is one of the major trends we are seeing globally. Many operations in southern Africa are still manual compared to our global counterparts, who have moved to more digital approaches for booking cargo movements, quoting and cargo tracking,” she said. “Globally, many companies are also focusing on long-term, volume-based contracts, whereas our local market tends to rely on smaller, one-off consignments at higher prices. Another international trend is the rise of public-private partnerships to improve efficiencies.” Despite the challenges, Reid’s overall outlook remains positive. She believes ongoing investment in facilities and operational upgrades will support growth and see bulk cargo volumes increase in the region. LV