Growth in copper sector helps get the balance right

Although the Bridge Shipping Group handles a variety of cargoes in a number of African regions, agricultural and mineral products have been the stars of the show in African business in recent times, according to group sales manager, Quinton Giles. “Our tobacco movements have been robust from Malawi and Zimbabwe over the past two years, adding to our investment in Beira to handle the exports moving through that port,” he told FTW. “More recently, we have taken on additional warehousing in Johannesburg to allow for larger than normal agricultural type cargo tonnages which will be under our control during the 2012/13 season. “Our copper movements from DRC/Zambia slowed down towards the third quarter of 2011. However, we are now back to tonnages experienced mid-2008.” This, he added, is extremely rewarding for the group, ensuring that the majority of the capacity utilised southbound is sent back to DRC/Zambia with the same road/ rail capacities. The country where the growth has been the most significant – the DRC/Zambia combined – is the one to note, said Giles. “Growth in the copper sector has been a major boost. This not only for the movement of copper through our Ndola/Durban facilities, but the fact that we are able to utilise the same capacity northbound, which has allowed for a renewed focus to ensure the majority of capacity under our control is utilised on a bi-directional basis.” Recent developments include investment in warehousing in Beira and the extension of Bridge’s service offering in Tanzania. Giles said this had allowed the company to diversify its cargo outflows as well as in inflows, from both a pricing and risk perspective. “By offering our clients the opportunity of moving their cargoes through Dar es Salaam, Durban or Beira,” he added, “we feel that we are well positioned in the coming years to ensure route to market for our clients.” One of the biggest challenges Bridge has faced in its dealings with Africa is cargo imbalances – where, at any given time it can have more cargo flowing in one direction than the return leg. This limits capacity, availability, as well as the ability to turn road or rail trucks under its control. Another challenge is the vastness of the region. “To meet this,” said Giles, “we have invested in our offices in Mozambique, Tanzania and Zambia. This provides us with an additional platform, to get closer to the source of the cargoes, thereby limiting the risks that our client may face.” Among opportunities in the year ahead, Giles was of the firm opinion that the growth being experienced in DRC/Zambia – with copper prices still at relatively high levels – remained a massive opportunity for the group. “Not only does the increase in copper volumes offer an opportunity,” he added, “but the requirement for raw material inputs assists in generating additional capacity and tonnage for the group. “By diversifying our options in terms of port offerings, we are poised to take a larger share of a growing market in this region.” CAPTION Quinton Giles … cargo imbalances one of the biggest challenges.