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Renewable energy creates opportunity

27 Jul 2023 - by -
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The project cargo sector is witnessing a surge of opportunities in the energy sector, particularly in renewable energy projects. And beyond these planned and ongoing ventures, it has been revealed that the cargo f low from South Africa to sub-Saharan Africa (SSA) has returned to pre-Covid levels, driven primarily by oil and gas projects along Africa's east and west coastlines.This is good news for South African logistics service providers, says Howie Frylinck, general manager of Pentagon Freight Services, as the country continues to play a crucial role in supplying these emerging markets.Speaking to Freight News, Frylinck said Pentagon Freight was experiencing a surge in business activities within the energy sector, particularly in oil and gas projects."With the reactivation of oil rigs and significant ventures in African countries such as Congo (Pointe Noire), Gabon, and Equatorial Guinea, we have witnessed a notable increase in operations. Additionally, ongoing smaller-scale projects in neighbouring countries Namibia and Mozambique are also seeing an uptick," he said. "Angola is always busy for us, and with the increase in the oil price, we have seen our business picking up in the country."He added that on the renewable energy side, there was also good news for project cargo and breakbulk service providers as there was a definite increase in activity, albeit not as good as oil and gas."At Pentagon, we have added mining as a vertical market to our project cargo profile. Some of the equipment manufacturers servicing the energy and marine sectors are also involved in the mining sector, and these companies are a perfect fit for Pentagon Freight globally. Every element of our company's evolution and development has revolved around meeting the unique demands of the energy se c t or."Frylinck said breakbulk sea freight options to and from South Africa remained challenging, with service less regular than needed. "The alternative of part chartering or full chartering vessels is expensive. Not only do we, as project logistics service providers, lose out on this, but so do our clients."The need for more equipment at southern African ports to handle breakbulk and heavy loads is another ongoing challenge.For example, the company recently trucked cargo from Namibia to South Africa to get it moving faster due to the shortage of shipping line equipment in Namibia. "The same goes for large cargo that urgently needs to get to Europe by airfreight. Or from Europe, the UAE or USA to our neighbouring countries. Another challenge we must deal with is vessels bypassing ports such as Cape Town."According to Frylinck, local service providers are more than capable of dealing with the challenges that exist when moving project cargo in Africa."Pentagon Freight, as the international player, has provided best-class international freight forwarding and logistics-related services – mainly in the oil and gas, mining and energy sectors – for almost 50 years. Our focus on total compliance, our global network, our services suite, our technology and our highly experienced staff make all the difference."

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