Maersk hints at further investment

Involvement in shipping, trucking and terminal management
RAY SMUTS STRIFE, HUNGER and disease-torn Africa is truly a continent of contrast that offers remarkable opportunities, which explains why Maersk Sealand, already firmly entrenched from the Cape to Cairo, aims at remaining on the expansion trail where investment is warranted. “Africa has a special place within our organisation, and although we have experienced volume growth in the past year we have also grown in our costs,” says Flemming Dalgaard, managing director of Maersk Sealand Southern Africa with headquarters in Cape Town, the base for the Africa head office. Maersk has always been dedicated to Africa, says Dalgaard, and for this reason the organisation enjoys own agency representation in virtually every African country apart from those locked in civil war. “This allows us to eliminate third parties and offer the same calibre of customer service enjoyed by Maersk customers in the rest of the world,” he added. In concert with Maersk Logistics, Maersk Sealand is involved in much more than shipping - trucking, for instance, and through AP Moller Terminals investment in terminals in Benin and Senegal. The company is also looking at participation in terminals in Angola and Nigeria. With responsibility for all countries between Zambia and South Africa, Dalgaard says even though the carrier offers several different services to West and East Africa as well as to South Africa, it is not so much the number that matters but the coverage on offer. “Africa changes a lot. Six or seven years ago the Ivory Coast was one of the most stable countries after independence but has been locked in civil war since 1999. This requires adjustment because one still wishes to satisfy customers but at the same time make sure others do not suffer due to port delays, port congestion and harassment of vessels.” By way of example, he mentions the recent decision by Nigeria to suspend all imports due to port congestion and other factors. “Sending a ship from Asia to West Africa takes six weeks, and when someone decides to stop imports it means the vessel has no alternative but to sit outside the port.” The cost of daily delay to an 1 800 TEU vessel is of the order of US$25 000 – not including daily running cost. For the future, Dalgaard says you cannot view Africa as a continent but rather need to look at it in terms of countries or clusters. Areas like Togo and Benin are inextricably linked to Nigeria because it is the driving economy.”