Transnet manager pushes hub strategy

The changing role of ports – from loading and unloading containers to critical elements of efficient distribution – was brought home loud and clear by Transnet strategic manager John Oosthuizen recently. “Ports need to be oriented towards supply chains in order to meet the changing needs of the shipping lines and fulfil their new role in the supply chain management era,” he said. In the highly competitive global environment, high logistics costs are unacceptable. And while the current downturn provides some breathing space for under-performing ports as volumes plummet, it’s a double-edged sword with lower volumes translating into less revenue. Global container growth has averaged 10% over the past 10 years, says Oosthuizen. In 2008 this fell to 8% and Drewry’s container forecast suggests that growth for 2009 will reach a mere 3.1%, recovering to 7% in 2011/12. The rapid fall in container volumes is borne out by global port statistics. In Hong Kong volumes are down 24%, Singapore 13%, Shenzhen 16%, Shanghai 6% and major US ports by 7%. Increasing revenue in a shrinking global market is a challenge faced by all stakeholders, and now more than ever Transnet is pushing the idea of its hub and spoke model – particularly for sub-Saharan traffic. “The Group is actively pursuing a hub strategy and believes Ngqura is ideally placed to attract transhipment cargoes through state of the art operations and facilities and deep draught, offering an effective initial base for hub activity.”