Project cargo volumes in Africa are experiencing a significant surge, but this growth brings its own set of challenges, particularly in the realm of insurance. According to Susan Duvenage, divisional director marine at Prestgroup, there are many complexities involved in insuring high-value project cargo shipments amid increasing risks.“Shipment values could easily exceed nine-digit numbers and the insurers do not always have an appetite for such exposures, especially at storage facilities where they face the risk of strikes, riots, fire and f lood,” she told Freight News.Increasingly, consignments with exceptionally high values are being shipped, ranging from solar installation plants to mining equipment. “Cargo is usually sourced from suppliers worldwide, but shipping lines are avoiding territorial waters and airspace in and around war zones at present. This results in additional transhipment ports, delays, and damages due to the extra handling,” Duvenage explained. “In certain instances, the cargo is not delivered in the desired sequence, resulting in demurrage and storage costs while awaiting the arrival of cargo that must be installed at the project site first.”In Africa, route surveys, crane hire and rigging operations are often necessary to assist with the loading and offloading procedures, adding further complications.Prestgroup is involved in providing a full range of insurance coverage for all exposures related to project cargo. “Marine cargo insurance covers physical loss and/or damages to the product, including General Average and salvage charges. However, clients could be exposed to additional financial risks such as fines, penalties, trade credit risks, rigging, positioning, and liabilities,” Duvenage said. “Despite the challenges, it is an area we enjoy being involved in. Our outlook for the project sector is extremely optimistic considering the ongoing interest in Africa. Infrastructure development is crucial, and the interest shown by international investors is encouraging.”She said as Africa continued to see increased mining activity and infrastructure projects, companies like Prestgroup would continue to play a vital role in mitigating risks and ensuring the smooth execution of these ventures. “The insurance industry's ability to adapt and respond to the evolving landscape will be essential in supporting the sustained growth of Africa's project cargo sector,” said Duvenage.
