Bidvest to invest R200m in multiproduct terminal

The Bidvest group is
planning to invest
R200-million over the
next 18 months to expand
capacity at its Durban
multiproduct terminal.
Speaking at the release
of the group’s 2010 annual
report, Bidfreight CE
Anthony Dawe said the
facility handled products
such as specialised coal,
manganese and copper
concentrate. The investment
is focused on growing
manganese exports, which
doubled in the 2010 financial
year, ended June 30.
Transnet in its annual
report also referred to
the growth in manganese
exports, with the main
export terminal in Port
Elizabeth being too small
to cope with the demand.
Transnet is looking at
building a new terminal
either in Richards Bay or
Ngqura.
The R200-million Bidvest
investment will see total
commodity capacity through
the Bidfreight Durban
facility increase from threemillion
tons a year to fivemillion
tons.
Bidvest Freight did well in
a difficult year, improving
trading profit by 3.1% to
R794.3 million (2009:
R770.7 million), according to
the report.
This improvement
was achieved “despite
a 14.5% revenue decline
to R15.9 billion (2009:
R18.6 billion). The revenue
mix improved as the lost
revenue was low-margin
clearing and forwarding
business,” said the company.
Island View Storage “put
in a good performance,”
and “excellent results” were
achieved by South African
Bulk Terminals.
Exports of forest products,
steel and imported bulk
products contributed to a
“record year” at Bidfreight
Port Operations.
Capital expenditure of
R503-million included
investments in new tank
storage facilities in Richards
Bay, and a South African
Container Depot (SACD)
freight facility in Cape
Town.
Rennies Distribution
Services “produced a strong
profit turnaround as the
benefits of cost control and
restructuring were realised,”
said the company.
On the minus side, a
“significant fall in demand
for imported consumer
products impacted clearing
and forwarding and
container handling”.
Restructuring of Safcor
Panalpina, “was necessary
as billings to customers
dropped, exacerbated by
lower interest rates and a
strong rand”.
SACD Freight “performed
well” by containing costs as
imported container volumes
fell. Stringent cost control
and cash management
contributed to a good result
at Marine. Lease conditions for Island
View Storage facilities in
Richards Bay and Bulk
Connections in Durban were
renegotiated with Transnet.
The K Line agency business
within Rennies Ships
Agency was reconstituted as
a joint venture.
Looking ahead, Bidfreight
says the demand for bulk
commodities “is expected to
remain high”.
However, “continued
pressure is anticipated
across imported volumes of
consumer products”.