Project cargo demand is slowly returning in Africa with volumes on the up – particularly in the power production, energy and general mining sectors.According to Jürgen Kuntz, head of the Africa Chartering Desk at SAL Heavy Lift, there’s strong development in the market. “Order books are longer and prices are on the rise – and will likely remain so for the foreseeable future as the world f leet of project cargo vessels develops slowly after a decade-long slump in significant f leet renewal,” he told Freight News. “Volumes are higher as demand for cargoes in the power production and energy sectors, as well as for infrastructure, has increased. This currently exceeds the available supply of vessels, causing longer lead times.”The outlook for the sector is very favourable, especially in light of countries boosting economies post-Covid. “It is still early days, but we believe a lot of money will be funnelled into infrastructure projects, which in turn has a spin-off for the project cargo sector as the primary go-to for logistics ser v ices.”Kuntz estimates that the market will grow for at least the next 24 to 36 months based on current trends. “In general, the multipurpose and breakbulk sector is becoming very hot, with order books much longer and general vessel capacity quite scarce.”Adding to the demand/supply conundrum is the fact that the global renewables market remains strong while the oil and gas market is also on the rise due to higher commodity prices. “This creates “the perfect storm” as both markets compete for the same f leet of vessels.”He said in Africa demand for cranes and equipment for power stations and the oil, gas and refinery sectors remained high.It was a sector, however, that still faced numerous challenges over and above high risk.“Congestion in and around the main ports on all our main trade lanes are an issue. It is a struggle for us as well as the cargo owners,” said Kuntz. “Covid-19 and the quarantine measures impact our operations as well as port operations. It becomes especially challenging when one has to bring in specialists to support a loading or discharge.“Another area of worry remains safety around the African coastline, especially in the Gulf of Guinea, but now also off the coast of Mozambique where the LNG project came to a halt due to fears around insurgents.”The market is likely to grow for at least the next 24 to 36 months based on current trends.– Jürgen Kuntz “
