Logistics major DSV is gearing up for growth with plans to open its own warehouse and yard facility in Mtwara, Tanzania and Mombasa, Kenya to serve oil and gas customers off and on-shore. That’s the word from DSV SA chief executive officer, Warren Erfmann, who is upbeat about future prospects in the sector. “There are huge opportunities in the likes of Mozambique, Madagascar, Uganda, Kenya, South Africa, Ethiopia and Tanzania,” Erfmann told FTW. “South Sudan and Uganda are ready for production, but in Uganda the pipeline is still under construction and in South Sudan political unrest is holding back full production.” Several new regional markets are however opening up, says Erfmann. “Namibia will be looking at new exploration wells in the next two years although planning has not been confirmed because offshore there are limited drill ships available. All those currently on the market are already block booked until the end of 2016,” he told FTW. Madagascar is another good prospect, and it’s planned to come on stream in 2015. “We expect that all operators will require a consolidation hub in Durban for cargo moving from global destinations into South Africa for consolidation and onward transport to Madagascar.” DSV is well placed to provide a full logistics package to this sector, says Erfmann, from transport and customs clearance to the movement of project cargo, out of gauge and overweight cargo as well as warehousing and storage, packing and crating. But where there are opportunities there are also challenges, and in Africa these are generally political or infrastructure-related. In Mtwara, Tanzania, for example, the establishment of a free trade zone has been in the pipeline for more than three years with no resolution in sight. Time-consuming paperwork also results in significant delays while infrastructure is not geared up to handle the volume of oil and gas business, particularly in East Africa, says Erfmann. “We are however hopeful that the current issues around the pipeline in Uganda will be solved so that the oil can f low into Mombasa, Kenya for export or can be tapped in Uganda/ Kenya for local use.” INSERT & CAPTION Infrastructure is not geared up to handle the volume of oil and gas business, particularly in East Africa. – Warren Erfmann
