SALCS spells out way forward

RAY SMUTS
FLEDGLING SHIPPING line SA Liner Container Services (SALCS) has had anything but a smooth ride since its launch earlier this year, but CEO Ian Wicks appears sanguine the tide has turned and that it’s full steam ahead with deployment before the end of the year of three new charter vessels.
Approached last week to clarify certain issues in light of uncertainty in the trade about the line’s future, Wicks told FTW: “You don’t put a shipping line together without a plan and that plan - in the case of SALCS four-and-a-half years in the making - got slightly railroaded. But I am not about to blame anybody. All we did was stop the meter ticking.
“You have to decide whether you wish to be big or small. Now that the stakeholders have decided to follow a slightly different tack we will be making an announcement in the next two to three weeks.”
The line started up on its Europe-South Africa service in February, having chartered on a two-year contractual basis the brand new, 750TEU, container feeder vessel MV Encounter from Dutch short-sea company JR Shipping BV.
Faults were detected during sea trials and the vessel was soon back in the hands of the charterers, leaving SALCS without a vessel but with a slot charter agreement through LauritzenCool Logistics (LCL). Wicks confirms several of the larger players including MSC and Safmarine gave the thumbs down to involvement with SALCS.
“The vessel was withdrawn because there were issues within the South African camp that needed to be resolved,” said Wicks - issues said by sources outside SALCS to relate to a major shareholder reshuffle.
“It was,” insists Wicks, “more political reshuffling than anything else, but there have been no shareholder withdrawals and SALCS continues to have their full support.”
The line, kick-started with an initial investment of around R6 million but with arrangements being finalised for a further R45 million to flow into the company, is 61% black-owned. Its stakeholders are Autshumatu (40%), Makana Investments (20%), MRC (20%) Stratford Family Trust (10%) and Vonden Investments (10%).
Wicks acknowledges charter vessels are generally not only hard to come by, but also expensive, but is confident SALCS will have no problem.