Investments in ports, energy and the mining sector will keep project cargo carriers busy amid the ongoing pandemic.Adapting to new markets and conditions is a sign of the times – and it is no different for the breakbulk and project logistics sector, which is seeing far more activity in green energy than in traditional oil.According to Duncan Bonnett of Africa House, there are some exciting developments on the continent that allow for a more bullish outlook.“In South Africa, the decision to allow private investors to build their power plants with up to 100 megawatts of generating capacity without requiring a licence, will see more project cargo coming into the country,” he said. “In the Northern Cape, there are copper projects and a couple of other mining projects under way that will boost activity. It might not be at the level one expects it to be, but we are seeing an increase in projects despite the pandemic.”And this is not just in South Africa, but across the continent. “There is already some infrastructure spending taking place. If one also compares the level of infrastructure development taking place at present to the situation 20 years ago, then the landscape is almost unrecognisable.”Bonnett said one country that was worth keeping an eye on was Angola. “DP World has taken over operations of the multipurpose terminal at the Port of Luanda after signing a 20-year concession with the government.”The Port of Lobito is also now up for concession – and whilst much smaller than the Luanda port, it could be of strategic importance to the Democratic Republic of the Congo (DRC) and Zambia for the export of cobalt and copper in particular.“There is still a blockage on the DRC side on both road and rail for this to become a reality, but it is a work in progress.”Angola’s Port of Namibe is also getting a major overhaul and will see volumes of timber and iron ore move through there.On the East Coast, there is also activity in the form of the Bagamoyo port – and this will see an investment of around $10 billion. “Construction at the Port of Lamu in Kenya is continuing, with the first three berths on the line operational. Another project to keep an eye on is the Port of Berbera in Somaliland. Most African countries that have ports are investing in some form or another to upgrade or rehabilitate port infrastructure.”He said several road projects were also under way, while renewable energy plants were also gaining traction.“Rail development on the continent remains slow,” he said, indicating that more often than not there was just not a business case to be made for rail development. “If one looks at Zambia and the DRC, somewhere between six and seven million tons of cargo is being moved. That is nowhere near the 80 million tons being moved out of Richards Bay. There is a realisation across Africa that volumes have to be there for a project to be viable. The adage of build it and the volumes will come has not held in Africa. Most African countries that have ports are investing in some form or another to upgrade or rehabilitate port infrastructure.– Duncan Bonnett“
