Regional consol services expanding

Growing freight demand linked to northern Mozambique’s oil and gas projects and mining activity in Zambia’s Copperbelt is creating new opportunities for cross- border consolidation services across southern Africa. LBH Xpress, which has traditionally operated consolidation services to and from Mozambique, has expanded its regional footprint to include Zambia, Malawi, Botswana and Zimbabwe as cargo flows into these markets increase. According to Reiner Barford, transport manager of LBH Xpress, the expansion includes the introduction of a new express service between Johannesburg and Mozambique, allowing clients to deploy dedicated vehicles for time- sensitive cargo. The company is also in the process of registering as a bonded carrier and, through its shareholder relationship with Rhenus, now enables customers to drop cargo at any Rhenus facility in South Africa for consolidation and onward movement through the LBH Xpress warehouse in Johannesburg. “There has been a definite upswing in the requirement for consolidation services,” said Barford. “We are seeing particularly strong demand into northern Mozambique following the resumption of oil and gas projects, as well as increased volumes into Zambia, especially from mining houses operating in the Copperbelt.” Despite the growth in regional cargo flows, cross-border operators continue to face persistent delays at border posts. According to Barford, many of these delays stem from documentation errors or incomplete paperwork submitted by shippers. In an effort to keep delays to a minimum, the company runs through a comprehensive checklist with clients before cargo is dispatched to ensure all the required paperwork is available and correctly completed. “It is critical that all documentation, especially when transporting hazardous or certain agricultural products, is in place and correctly completed,” he said. A further challenge facing cross-border operators is the steadily rising cost of transit through neighbouring countries. “We have seen these costs spiral in certain countries, which ultimately drives up the overall cost of transport,” said Barford. He added that recent heavy rains in Mozambique had also created significant operational challenges, with several major routes temporarily closed after sections of road infrastructure were washed away. “Fortunately, the authorities reacted swiftly and the roads were made passable again in a relatively short period of time,” he said. “However, weather-related disruptions remain a constant challenge, and as an industry we always need to have contingency plans in place to ensure cargo still reaches its final destination.” Despite these challenges, Barford said the outlook for cross- border logistics remained positive as trade volumes across the region continued to grow. “We have seen steady growth in cross-border trade between the various SADC countries over the past few years, along with an increase in imports from overseas markets into the region,” he said. He noted that large-scale oil and gas developments in Mozambique and ongoing mining activity across the region were key drivers behind the growth. “There is no doubt that these projects are stimulating cargo volumes and we expect to see further increases over the next 12 months as they continue to progress.” LV