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.