Beluga demise squeezes project cargo capacity

Capacity has become a
major concern for the South
African project cargo industry
following the liquidation of
a shipping line that regularly
called at the country’s ports.
According to Sunil Kalu,
business development manager
for African Project Logistics
(APL), the projects division of
logistics company ICM Group,
the liquidation of Beluga
shipping lines has resulted in
a lack of booking space for
project cargo recently.
“With only a few project
vessels coming into South
African ports, capacity is a
problem and booking space
when commodities are ready
to ship can be difficult,” he
told FTW. “Also many of
the charter companies have a
monopoly in setting the price
tag. This means that the site
delivery times are increased
and project duration is
increased.”
On the reverse side of the
coin there are also many
projects where infrastructure
delays have caused critical
components that are imported
to be offloaded at a storage
location, causing double
handling and not only
increasing cost but also risk.
“It is critical that we address
these challenges as we see
more international competition
in the project cargo arena as
the world demand for mineral
commodities, of which Africa
is rich, increases.”
Kalu says the success in the
project cargo industry is reliant
on addressing these challenges.
“But it is also essential
to quote a market-related
realistic price when tendering
and to have the right team
on board who technically
understand the cargo.”
This is further enhanced by
having internal operational and
project management processes
that are in line with clients’
and end clients’ expectations
– along with a bullet-proof
quality control system
where risk identification and
mitigation is crucial.
“Experience makes all
the difference – along with
planning. At least two thirds
of our time is spent upstream
planning long before the cargo
is dispatched from the factory.
Being ready for any eventuality
is key.”