Shrinking volumes reduce berthing delays in Angola

Port congestion in Angola has
diminished as recession bites
into traffic volumes on the
trade, according to Andrew Thomas,
CEO of Ocean Africa Container
Line (OACL).
“Berthing delays in Angola have
reduced significantly over the past few
months,” he said, “as a result of this
decrease in throughput.”
He attributed this declining
throughput to a lack of foreign
currency available in the market. This
being a consequence of the lower oil
price in the global economic downturn
– with the bulk of the country’s
export income coming from its crude
oil production.
“Shippers should take full advantage
of this improved fluidity,” Thomas told
FTW, “as this opportunity to move
their cargo into Luanda with minimal
delays is temporary.”
However, he is also confident
that inherent demand in Angola
remains strong.
“In conjunction with the increasing
oil price, continued capital investment
and commercial events like the 2010
African Cup of Nations will result
in a correction of the forex shortage
dilemma. As a consequence it is
expected that in 2010 throughput and
congestion will increase in line with
growth in the demand for imports.”
With global volumes declining at the
end of 2008, Thomas suggested that
many shipping lines looked to enter
and service the SA-Angola market by
offering what he termed “unsustainable
rates”. This, according to his
calculations, had the unwelcome effect
of eroding the market rate substantially.
“We have seen the exit of some of
these lines,” said Thomas, “and expect
to see further departures before the end
of 2009, mostly as a result of a market
miscalculation.
“These lines have come and gone
through the years,” he added, “with
their failure as a result of the lack of
understanding of this complex market.
Unlike Ocean Africa, which has
serviced this market consistently for
decades and is still operating a regular
service into this region by forging
long-term relationships with its clients
and authorities. This has stood all
concerned in good stead.”
Thomas also has an optimistic
outlook on the African east coast.
He told FTW that he expected the
developing Mozambican economy to
see increased demand, not just as a
transit port for inland countries, but for
local consumption.
“The significant investment into
the Moatize project by Vale and the
construction of a coal-fired power
station are just two of the contributing
factors to this expansion,” he said.
“As a result of significant infrastructure
investment, improved fluidity of
the ports will permit the market to
develop without the historic restraint
of inadequate port facilities which
limited throughput and, in turn, market
growth.”
Ocean Africa has readied itself to
meet this developing market.
It recently deployed an additional
vessel to complement its existing
east coast service, which Thomas is
confident will cater for the expected
increase in demand.
“The additional capacity,” he said,
“will improve an already efficient
weekly container service to the ports
of Maputo, Beira and Nacala – with
the added benefit of being able to
carry breakbulk such as project cargo,
machinery, large vehicles or similar.”
Ocean Africa also has the advantage
of offering a cabotage service as a
result of its major shareholding in
Mozambican subsidiary, Mozline.