Poor breakbulk volumes dictate future investment

South Africa’s bulk and breakbulk terminals are struggling as the container business thrives. According to Nico Walters, general manager strategy for Transnet National Port Authority (TNPA), volumes at breakbulk terminals across the country are at least 40% down and it’s a situation that is not expected to change in the near future. “It is no secret that the conventional bulk and breakbulk terminals are struggling. Containers show us sustained growth every year and the breakbulk cargoes never get to budget. And so there is always a problem when we get to investments and have to make decisions as the breakbulk side just does not allow for sustained investments over time any more.” He said even looking at individual terminals at ports there was very little guarantee of any return on investment on the breakbulk and bulk side. As a consequence, he said, Transnet had launched a business development department within TNPA whose sole purpose was to talk to customers and establish their needs. “At the same time we have to find ways of utilising infrastructure at terminals where we are not making budget,” he said. “The entire debate also raises another issue – how much competition should be allowed within the ports. We don’t necessarily want terminals competing for the same cargo within this country as we don’t think there is sense fighting for the same commodity.” Walters said these were not easy discussions with quick solutions. “We have done well in automotives and in containers but when we look at bulk then the volumes are down and the economy is not giving us a quick solution. It’s a matter that needs discussion.” INSERT & CAPTION Transnet has launched a business development department within TNPA whose sole purpose is to talk to customers and establish their needs. – Nico Walters