Reduced budgets force a switch from air to sea

The downturn in the world
economy has not stopped
companies from doing
business, but it has changed
the way they do business,
according to Blain Kondiah,
MD of Turners Shipping.
He was commenting
on the state of the freight
management and logistics
industry following the recent
Air Cargo Summit held
at Durban’s King Shaka
International Airport (KSIA).
The purpose of the summit,
Kondiah told FTW, was to
discuss strategies and future
plans for the Dube TradePort at
KSIA, which, according to the
developers and management,
could well become the ‘New
Gateway into Africa’.
“One of the goals of
the TradePort,” he added,
“is to recapture some of
the freight that is being
routed through OR Tambo
International Airport (Ortia) in
Johannesburg.
“The purpose-built
buildings and modern freight
handling infrastructure at
the country’s newest airport
have been designed to offer
maximum efficiency – with
the cargo terminal, customs,
the SA Police Service and Port
Health officials all on-site.”
Turners Shipping was
one of the first of the freight
management companies to
establish itself at the TradePort
when it opened in October
2010.
“For the first year of
operation at the airport,”
said Kondiah, “we enjoyed
increased volumes in
airfreight. But there was a
general drop in airfreight
volumes over the last quarter
of last year. This is linked to
the economic climate, and will
change in time.”
He noted that, as airfreight
volumes drop, there has been a
steady growth in ocean-based
imports and exports.
“Reduced budgets have
forced companies to become
proactive – and the result
is better planning of freight
shipments,” he added.
“Customers are able to take
advantage of the substantial
savings that ocean transport
has to offer when compared to
airfreight. Naturally the lead
times are very different but
people are adapting.”
However, Kondiah
emphasised that some sectors
of the economy had not been
as badly affected by the
recession. “Mining operations
in Africa continue, along with
oil and gas extraction and
exploration on the continent’s
west and east coasts. And these
rely heavily on the logistics
industry for the supply of
equipment and provisions.”
An example of this interrelationship
between these
developing industries and
logistics providers was
Turners Shipping recently
managing the delivery of
around 50-tonnes of drilling
equipment to Mozambique for
Aprile Project – Italian-based
specialists in the industrial
shipment field.
Said Kondiah: “The massive
15-metre-long crates were
airfreighted into South Africa
and transported by road to
their final destination. This
is definitely a sector of the
economy that is experiencing
growth despite the economic
situation.”