I ncreased project activity in Africa is boosting investment in equipment and infrastructure – and logistics companies are preparing for the growth. With the major LNG gas projects about to kick off in Mozambique, and several others in the hinterland, having the necessary capacity in place is critical, says Kanishk Jaiswal, a senior manager heading up the Beira Logistics Terminals (BLT) projects department, a part of the J&J Group of companies. “We have made significant investments in premises and machinery at Independent Beira Logistics Terminal and Services (IBLTS), building two additional warehouses of around 2 500 sqm as well as a new single- deck heavy-duty weighbridge,” said Neil Stals, IBLTS general manager. In Lusaka, Zambia, the group has invested in a new warehouse. “We’re not only seeing developments in Mozambique but across southern Africa,” said Jaiswal. In Malawi a new powerline was going up while there was growing demand on the Beira corridor, he added. The J&J Group believes that the additional capacity will go a long way to addressing the existing bottlenecks as well as the lack of warehousing space in the region. In view of the growth, he said it was imperative that some of the major challenges be addressed. This included poor road and bridge infrastructure and border delays. He said it was also imperative that African countries created stable trading environments as the frequent changing of rules and regulations had a negative impact on trade. Currency fluctuations and the lack of power in many countries could also be challenging. Jaiswal identified high ocean freight rates to various ports as a further concern, while delays and unpredictable transit times often increased logistics costs.
INSERT: We have made significant investments in premises and machinery at Independent Beira Logistics Terminal and Services. – Neil Stals