Greater competition squeezes margins

As project cargo volumes continue to increase year on year, more and more operators are entering the project logistics space and the result is tighter margins. “But the larger mining and engineering companies do not only use price when allocating project work – especially when dealing with more complex movements,” says Clinton Eckersall, GM Bridge Projects, a division of the Bridge Shipping Group. “Key differentiators are important in the current market and we believe that having strategically located warehouses in Durban (close to the port) and Johannesburg (close to City Deep) has given us a crucial advantage.” Eckersall says there has also been an increase in volume and enquiries for bulk commodity rail into and out of sub-Saharan Africa. “It is has been a boon having our own rail sidings in Durban, Johannesburg, Ndola and Lilongwe as rail is definitely seeing a comeback in the project cargo sector,” he says. “There is undoubtedly a renewed interest in rail into and out of the Copperbelt region. The ability to cross-haul and stage cargo before final delivery is critical, especially when handling high tonnage parcels.” INSERT & CAPTION Dealing with port authorities both locally and globally can be challenging. – Clinton Eckersall