Unexpected growth stretches supply chain to the limit

The Gauteng supply chain is under pressure, as cargo volume growth has beaten all the industry forecasts, according to Francois Blignault, Johannesburgbased GM of depots and logistics for MSC Logistics. “The current inability of both the road and rail modes of transport to cope with volumes to and from Gauteng is a fact that probably the entire industry was awaiting at some or other stage,” he told FTW. “What surprised us all though is how fast this situation developed after the recession and the subsequent Transnet strike.” According to company figures, volume growth experienced by the MSC Logistics since the second quarter of 2010 has exceeded all expectations – and probably left the entire industry ill-prepared, Blignault added. And, this enormous growth has stretched further than Gauteng – with a worldwide shortage of container equipment in general. “Adapt to the change is the philosophy of MSC Logistics,” he said. “If the supply chain cannot support its importers’ and exporters’ increased volumes, then obviously world markets will source their required commodities elsewhere – and this must be avoided at all costs. “We have been monitoring the situation in Gauteng diligently, and engaging in areas where we felt a change could be made. But we will continue to make alternative plans to accommodate our clients’ requirements in areas where we are confident that an effort will not deliver the desired result.” Blignault listed the current obstacles that needed to be overcome as: • Transportation to and from coastal areas of ever-increasing container volumes; • Accommodating ever-increasing mineral commodities not suitable to certain transport modes; • Adapting container depots to cope with the changing environment of increasing volumes; • Finding solutions to alleviate the container traffic in and around City Deep: • Finding ways of restoring the timereliable supply chain that Gauteng clients can rely on. MSC Logistics is also busy enlarging its vehicle and trailer fleet to meet current cartage demands. Deliveries of new equipment are in process and will continue throughout the balance of 2010. The company is in negotiation for additional land to expand its current depot facilities. As far as equipment is concerned, split operations are being considered to ensure smoother operations in future. It is intending to build on what it described as “a long-standing and strong relationship” with Transnet Freight Rail (TFR), to ensure that rail will continue to form an integral part of its supply chain. “Further north from Johannesburg it is business as usual,” Blignault said, “with a lesser disruption than in City Deep”.