New China focus pays dividends

Three years since the launch of a focused strategy on the China-Africa route, logistics major Bollore Africa Logistics is reaping the rewards. “We are upbeat about future growth,” regional commercial and marketing manager for Southern Africa, Jacques Baudelot, told FTW. “In the past our focus was more on China to Europe, US and the Middle East, but three years ago our commercial department in Paris turned the focus on the Africa leg.” Inbound cargo is largely project-related, and while the Bollore Africa Logistics push is for end-to-end solutions, the China-Africa leg is largely controlled from China, says Baudelot. “If the exporter prefers to manage the international leg, we take over from port or airport to remote sites. This is where we want to make a difference and where we feel we have the expertise to do so. “From a zero base we have developed this business to 350 000 tons moved into Africa last year,” he said. The company is also looking at the bulk export market out of southern Africa, moving the likes of manganese, iron ore and ferrochrome to China. The main challenge in this sector is transport capacity, says Baudelot. “A shortage of trucks is seen as a potential problem in 2013.” While Bollore Africa Logistics’ 400 owned trucks are an advantage, volumes demand that it outsources a large portion of the haulage, and nonavailability of trucks can be a problem. “In an uncertain global economic climate, where demand and supply dictate volume growth, there’s a question mark over the prudence of further investment in vectors of transport at this stage,” he said And while rail would be an attractive option, the service currently ends at Lusaka. “We are keeping a close watch on what Transnet is doing, but for the moment, road transport remains the main option.” CAPTION Jacques Baudelot … upbeat about future growth.