New MOL service provides direct SA – China links

January 17 will see the launch by Mitsui OSK Lines (MOL) of its new-look service that effectively consolidates the Singapore-Durban (ZAX) and the Shanghai-Singapore shuttle services. MOL president Akimitsu Ashida said in an announcement from Tokyo the new ZAX, as it will be known, will call at major ports in China (Hong Kong, Shanghai, Xiamen and Yantian), which provides a direct service between China and South Africa. In addition to Durban, ZAX’s original calling port in South Africa, a new feature will be direct calls for imports at the Mozambican port of Maputo. Maputo was covered for exports by MOL on its WA1 service between Asia, South Africa, West Africa and Asia but this will no longer be the case. Iain McIntosh, Cape Townbased marketing manager for MOL, tells FTW an additional call at the new Dachan Bay terminal in China’s Shenzhen area is to be added to the schedule in the near future. The consolidation of two services into one essentially means that vessel deployment will increase from four to seven of between 1 600 and 1 7 00 teu nominal capacity. This actually amounts to a slight capacity reduction eastbound, given that the Maputo call on WA1 falls away. McIntosh explained: “Diluting capacity is not a major problem other than ensuring we select the right cargo mix and look after key customers who support the service.’’ He says the major benefit of the new ZAX is offering customers more direct calls in China while the inclusion of Maputo makes it the first import liner service to call there direct. “The Maputo development is simply highlighting our commitment to the Maputo gateway and the other investments which are being made there by groups like DP World and Grindrod to support the port’s growth.’’ Asked to comment on MOL’s record profit, US$1.61 billion for the year ended March 2007 McIntosh says: “A lot of the company’s strength has come from the bulk trades, tankers, oil carriers and car carriers. The liner division, in line with many other carriers, has had a tough recent year though.” His expectations for MOL in the year ahead? “I am hopeful it will be profitable because liner trades are stronger, certainly in the local trading environment, because of the strong bulk trades, and I hope we can see reasonable returns on our business.”