The unpredictable volume
forecast in the mining
sector remains a huge
concern for specialist minerals
logistics companies in 2013,
said Kriba Naiken, director of
Quattro Logistics.
“With fixed monthly costs
versus an ebb and flow of
volumes it makes for difficult
situations that have led to many
a logistics service provider
barely surviving. Many others
are trying to base their service
on contracted volumes, which is
rare, as most mines cannot afford
the risk themselves.”
He believes that rail is the
solution to addressing costs,
but growing mine production
volumes, lack of efficiency
at loading and off-loading
nodes and poor planning and
intelligence have created
a stigma for this mode of
transport.
“Transnet has committed to
massive investments in rail and
supporting infrastructure but we
will only appreciate this benefit
in a few years’ time,” he said.
“For now, companies have to be
innovative and push for the best
solutions possible to ensure they
remain viable and survive the
next few years.”
With the lack of bulk rail
capacity, logistics costs continue
to rise as too much rail-friendly
cargo lands on trucks.
“Port capacity for bulk
shipments are limited even with
markets being tentative, but
with indications that markets
are set to increase even for a
short period in the new year,
bulk capacity will become nonexistent,
meaning that some
mines will not be able to take
advantage of market upturns,”
he said.
According to Naiken,
collaboration is going to play a
major role to ensure success in
the mining sector over the next
few years.
“Collaborative efforts between
the producers, Transnet’s
respective divisions, consignees,
logistics companies, shipping
lines, road transporters and
logistics architects, like Quattro,
will be the differentiating factor
to determine if success can be
achieved.”
CAPTION
Kriba Naiken … ‘Rail is the solution to
addressing costs.’
