As mining companies employ
survivalist strategies to
achieve the status quo,
the biggest challenge at present
is to offer quality of service at
dramatically reduced margins
given the increase in labour costs,
electricity and general inflation.
“While demand for product
remains high, mining companies
are carefully balancing recent
challenges in order to work towards
achieving expected output targets,”
says Paul Levy, sales director at the
Bridge Shipping Group.
“Companies are having to do
more with less,” said Levy. “This
affects staffing, machinery and land
use. There are logistics challenges
for the sector and we will probably
experience a consolidation of the
various service providers as the
commercial pie shrinks.”
At the same time as the mining
business becomes more marginal,
Levy said, so volumes are going to
have to increase to help companies
reach their targeted goals.
“Because the increased product
volume needs to be shipped, the
rail, ports and roads will need
to cope with this demand. To
achieve this infrastructure must be
upgraded.”
Against this background, Levy
says there is a definite move
towards quality selection.
People are selecting brands and
services they know they will be
able to rely on if things become
acutely worse. Now more than
ever it is quality above all else. He
said the Bridge Shipping Group’s
association with C Steinweg was
a valuable differentiator – with
international brands increasingly
sought after as business partners.
“It is all about being able to
survive in the current economic
times where companies are
applying more stringent economic
measures to ensure their ongoing
survival,” he said.
CAPTION
Paul Levy … ‘Now more than ever it is
quality above all else.’
