LBH South Africa has addressed the bulk storage capacity challenge in Durban and Richards Bay through strategic investments in innovative solutions. Rob Dean, the regional operations manager, emphasised the importance of "back-of-port" bulk storage, which has now become a critical component of their service offerings. The company has partnered with warehouse operators to enhance and revamp its services, ensuring they meet their clients' needs more effectively.Dean highlighted the benefits of managing purpose-built warehouses, which enable the company to provide significant efficiencies to their clients. “Additionally, LBH South Africa has implemented an on-the-ground tally and oversight mechanism for clients' cargoes, which ensures efficient turnaround times for both cargo and vessels. This comprehensive approach promotes smoother operations and better service delivery in the logistics chain.”According to Dean, the company is continually optimising supply chain opportunities for its clients by exploring back-of-port storage and cross-haul options. “By optimising these facilities, we enable shippers and mines to store larger volumes of cargo closer to the export point," he said.While volumes have been subdued, a move attributed to lower commodity prices in general and higher freight costs, ongoing investment in operations is important for LBH South Africa. “We are, however, noticing a gradual increase in interest and volumes out of both Richards Bay and Durban.”He said there had also been a marked increase in RFPs issued by Transnet in relation to prime port properties. This was good news for the logistics sector at large. “With Transnet offering up more land and infrastructure closer to the ports, this will improve the capacity of breakbulk/ bulk storage areas nearer the loading berths, thereby decreasing cross-haul costs and storage costs to expor ters.”According to Dean, current regional trends include shippers loading part cargoes at less deep berths/ports and then topping off at deeper draught berths/ports. Additionally, some shippers are increasingly loading smaller parcels to take advantage of the fewer berthing delays at certain ports, a trend particularly prevalent in Richards Bay. “Intermodal solutions are also definitely being fast-tracked inland from these ports,” he told Freight News.But the lack of rail capacity remains the most prominent issue exporters are facing, with rail volumes in the past two years at their lowest in 15 years. "Despite its relatively high cost, road freight has taken a massive lead in the past five years due to rail inefficiencies," he explained.The Reserve Bank has estimated that transporting coal via rail can cost up to a $40.00/mt differential. "With an increase in road trucks calling at both ports, congestion is now the next challenge within the city and port precincts. It is therefore key to have an able logistics operator to manage truck f lows," said Dean.
