Informed handling decisions can minimise losses

PORTNET'S PRIVATISATION moves provide an ideal opportunity for investors to assist in upgrading South African harbours and, in particular, container terminals which historically have not kept up with the pace of global development due to economic restraints of 'other priorities'.
Not only will this help to improve security systems, says Fred Harrison, executive director of marine insurance specialists Marriott Marineserve, but it will reduce container losses which reached alarming proportions two to three years ago.
"Along with this, EDI flow will assist in reducing container losses which have come about because of fraudulent release documents."
Harrison's views are based on his experience in the handling of marine insurance and legal liability insurance cover for clearing and forwarding agents and transporters. "At Marriott we are proactive in the loss prevention arena," he says.
Of concern to him at present is the growing demand for maize supplies to be sent from South Africa to neighbouring countries.
"Zimbabwe is calling for 100 000 tons this year, which is in line with the figures required by Malawi and Zambia as well. In each instance road transport is envisaged, but you must take into account that every 100 000 tons will require 3 000 truck loads. In most cases this will be carried on semi-open vehicles with an accompanying heavy insurance risk.
"The logistics of these trips are incredible and the security of the cargo questionable to say the least; all along the routes there are sure to be hungry people."
Harrison recalls an incident a couple of years ago which illustrates his point. "We were insuring maize going from northern Zimbabwe into Zambia, when a truck overturned. Two hours later our assessor got to the scene to find no sign of any maize. On asking for an explanation he was told 'the elephants ate it all!'
"If we were in a position to adopt a wider approach to the food shortage in Southern Africa and its distribution, we could look at shortages in transit as a cost-saving exercise."
Harrison suggests shipping these vast consignments
to nearby ports, with Beira and Nacala the more suitable offloading destinations. From here road travel is much shorter to final delivery points. "Using containers would have afforded the bags of maize some protection from theft and pilferage. I cannot see us having the available transport for these tonnages."
At the same time he is suggesting that greater use should be made of the developing Maputo harbour for bulk shipments of South African goods from Gauteng and Mpumalanga.
"The bulk terminal there is still very viable," he says, "and while an additional coal terminal is being called for at Richards Bay, why not have this type of facility established on a large scale at Maputo which, after all
is far closer to the Mpumalanga coalfields, and has the Maputo Corridor development to assist in faster deliveries."