Polaris is on the expansion trail. This is the news from Group CEO Malte Kersten.“We have major plans to extend our footprint from our traditional ship agency and port operation business into niche areas in logistics and shipping.”Kersten told Freight Newsthe company also had plans to diversify into non-shipping areas, and several new projects were currently under discussion.Whilst not able to divulge too much information as yet, he said there were many opportunities in the logistics sector in South Africa.“If one considers that the country already boasts some of the best seaports and airports on the African continent – and that its seaports, in particular, are main gateways to many landlocked African countries, then it makes sense to expand one’s operations.”But, warned Kersten, it was critical that South Africa did not sit back and rest on its laurels. “Knowing this opportunity, many of our neighbouring countries are improving their port facilities and attracting ships to call at their ports with on arrival berths and uninterrupted operations. If South Africa does not improve its port facilities, port productivity, berthing congestion and ease of doing business, the international shipping communities will look for other options on the continent.”He said willingness to improve port facilities and infrastructure, as well as ongoing investment in this regard, could see the country establish itself as the biggest transhipment hub on the African continent.According to Kersten, there were also opportunities to improve the existing rail network to enhance efficiency in moving cargo between the ports and the hinterland. “With most manufacturing and mining happening 500 to 700 kms away from Durban in the north of the country, there is potential to improve efficiency by increasing and upgrading the existing rail network with the participation of the private sector. This will not only make logistics more efficient, but also far more affordable and competitive on the international market.”This was imperative considering that seven of the ten most competitive sectors were heavily dependent on transport. “Mining, automotive, steel and other metals, FMCG, agribusiness, building, construction and engineering all require efficient transport systems to be competitive. South Africa therefore has no choice but to invest in its logistics infrastructure if it wants to benefit from the opportunities that exist – and if it wants to establish itself as a transhipment hub into West and East Africa.”Kersten said the country’s logistics infrastructure was rated ‘good’ for the most part when compared with many other countries on the continent. “On the f lip side is maintenance and upgrading of infrastructure. This is simply not happening as fast as it is in other countries and will eventually take its toll, lowering South Africa’s ranking on the international shipping/logistic rating chart. Around 77% of the land freight is transported on roads and the low maintenance of the roads is a cause for concern. "South Africa has no choice but to invest in its logistics infrastructure if it wants to establish itself as a transhipment hub into West and East Africa.– Malte Kersten
