Multi-purpose market shows signs of growth

Confidence seems to be returning to the West Africa multipurpose market with infrastructure, power generation, rail and miningrelated cargoes supplementing the drop in oil and gas volumes. “We’ve been keeping a very close eye on multipurpose trade activity in West Africa and are beginning to see signs of increased market confidence,” according to SafmarineMPV Southern Africa line management, James Lewer and Pamela Yerushalmy. “This confidence is reflected in the current levels of multipurpose trade activity, the number and nature of enquiries being received as well as the positive sentiments expressed by regular shippers, cargo owners and manufacturers.” While oil- and gas-related cargo volumes in general have slowed as a result of the drop in the international oil price, SafmarineMPV believes that because of its broad end-market exposure that there is still plenty of opportunity in the market. For example, investment in power plants and utilities, a priority for many African countries, has boosted imports of raw materials and capital equipment to support these investments. “From a geographical convenience point of view, a great deal of the cargo needed for these large infrastructural projects in West Africa is being sourced from southern Africa and transported by sea on services such as SafmarineMPV’s SAFWAF service,” says Lewer. It offers regular sailings ex Durban, Cape Town and Walvis Bay to Matadi, Boma, Sonils, Pointe Noire and Port Gentil. Lewer is hopeful that this increased market confidence will also result in more rail-related cargoes moving by sea. “Last year, SafmarineMPV successfully shipped 11 rail wagons from South Africa to Angola and is ideally positioned to service shipments of this type into the rest of West Africa,” he said. “The importance and potential of improved rail infrastructure in Africa was highlighted at the recent Southern African Railways Association (Sara) conference and several southern African countries have expressed interest in investing more heavily in new infrastructure and equipment for their national railways.” Shippers are, however, likely to remain cautious while the market recovers. CAPTION Confidence in West Africa’s multipurpose trade is being boosted by, amongst others, investment in power, utilities and the national railways of several African countries.