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PPPs the logical way forward

04 Mar 2024 - by -
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As the mining industry continues to f lourish across the African continent, significant investments are being made to bolster infrastructure and streamline logistics operations. Companies are recognising the pivotal role of efficient transportation and supply chain management in supporting this growth trajectory, said Koen Rombouts, managing director for southern Africa at Africa Global Logistics (AGL).The company, which has solidified its position as one of the top logistics service providers on the continent, has made significant investments in its mining operations by setting up dedicated teams to service the sector. This move emphasises AGL's dedication to offering customised solutions and optimising efficiency in the fast-growing mining sector."Our ongoing investment in ports, road, and rail infrastructure ref lects our commitment to continuous expansion," said Rombouts. "Mining operations in Africa often occur in remote regions where logistical challenges can significantly inf late costs. Therefore, enhancing capacity and investing in infrastructure is paramount for improving efficiency and ensuring the sustainability of these operat ion s."He said AGL was currently making substantial investments, particularly in port infrastructure. The company has become one of the leading operators of port concessions in Africa. Rombouts said this was about accommodating the growing volume of mining exports on the continent and optimising connectivity between countries and global markets.In the east of Africa, AGL has undertaken to implement an investment programme for the modernisation and development of the Port of Malindi in Zanzibar through its involvement at the multipurpose terminal. The company plans to build an inland container depot outside the port to relieve congestion at this port hub. On the West Coast, AGL is set to transform the Port of Lobito in Angola, where it now operates both the container and multipurpose terminals. It has committed to investing nearly €100 million to turn the Port of Lobito into a modern, efficient, and competitive port platform, expected to facilitate the transport of strategic minerals such as copper and cobalt from the Democratic Republic of the Congo (DRC) to international markets.AGL has systematically been diversifying its portfolio of services, now boasting an expansive network, including some 250 logistics and maritime agencies, more than 20 port and rail concessions, at least 66 dry docks, and two river terminals. "Most of the cargo we transport holds tremendous value, necessitating efficiency and a seamless logistics chain from origin to destination. We've maintained our focus on entire corridors, constantly seeking ways to enhance our services by strategically investing in infrastructure. This approach enables us to deliver seamless solutions, ensuring our clients' needs are met effectively," Rombouts told Freight News. " We strongly believe that continued investment in corridors will not only enhance trade but also foster the growth of intra-African trade, which is a significant development in its own right."He said by bolstering connectivity and efficiency along these routes, logistics companies were not just facilitating commerce, they were laying the foundation for greater economic integration and prosperity across the continent.Asked about the importance of infrastructure investment by logistics companies, Rombouts said more than government efforts would be required. "Without investment, progress is simply unattainable. You cannot work on this continent and not invest. This is where we specialise as AGL – in public-private partnerships (PPPs) – leveraging our expertise in the logistics sector."He said, looking at the developments on the Lobito corridor, talks were now moving towards linking it with Zambia – a move requiring billions of dollars. "No government can deliver that on its own. The private sector plays a vital role. We have teams dedicated to devising solutions, determining the best approaches, and securing government and private sector funding to ensure these projects are successful."In terms of the mining sector in particular, Rombouts said collaboration and innovation remained at the forefront of efforts to overcome logistical hurdles and unlock the continent's vast mineral potential. "We know and understand the continent, having been involved in the logistics sector here for decades. It is a continent that has always carried risk. Success in this environment requires persistence and perseverance." “He added that transforming Africa and ensuring it was more connected to itself and globally would, however, require increased collaboration and innovation." he said. According to Rombouts, it is with this in mind that AGL is continuing to expand its footprint on the continent, investing in human capital, fostering technological advancement, and embracing sustainable practices."Logistics companies play a pivotal role in driving transformation in Africa, not only in the mining sector, as we continue to facilitate trade locally and internationally, streamlining the movement of goods."

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