Managing risk is crucial when moving high-value tobacco

Moving high-value tobacco from Harare to Durban on time, and with the cargo intact, requires complex, wellcoordinated logistics and reliable service providers. “To continue growing the business, we have to maintain our reputation. The cargo has to make the stacks on time, and losses must be avoided,” says Graeme Pattinson, managing director of Aqua Shipping in Zimbabwe. The company is building its reputation around the movement of Zimbabwe’s tobacco exports, which have recovered slightly from a disastrous low of 50 million kgs to reach an expected 130 million kgs this year. According to the Zimbabwe Tobacco Industry and Marketing Board (TIMB), the country earned US$313.5 million from tobacco exports up to August this year. However, the 130 million kgs is well below the target of 177 million kgs owing to high losses of 31% on farms and 21% during the re-handling process, according to TIMB. Logistics suppliers such as Aqua Shipping now have the responsibility of ensuring that further losses are kept to a minimum. One of the biggest risks is theft of cargo. Losses incurred by cargo owners – if the tobacco is stolen – include customs duties, which are payable in the case of theft. Pattinson says management of the risk starts with the choice of haulier. A broken-down vehicle, one that is pulled over for being un-roadworthy, and corrupt drivers all add to the risk. “We only deal with reliable truckers,” he says. The vehicles travel in escorted and satellite-tracked convoys of no more than five at a time. “More than that and you lose contact between the first and last vehicle, and the chances of delays increase,” he says. That is after the loads have been securely sealed against weather and pilferage on flat-bed trailers. Pattinson and his team “who are all ex tobacco companies” also ensure that the correct grades are loaded. “We meet with clients every day to ensure that we supply the right mix,” he says. Aqua makes use of flat beds rather than containers because of the increased cargo payload (a full 34 tons of cargo) and greater flexibility during final preparation for export. Loads are pre-cleared to speed up transit through the Beitbridge border post. The tobacco is taken to the CWT/ASI warehouses in Gauteng where it is packed into containers for shipment through Durban.