Importers of mining equipment and spares, and the logistics companies responsible for their customs clearing and forwarding, face several challenges, one of which is the delays at South African ports.
This is according to Marlon Reddy, Turners Shipping’s Gauteng branch manager.
Mining is an important contributor to the economies of countries in sub-Saharan Africa, representing around 7.5% of South Africa’s GDP.
Increased costs and low margins are squeezing mining profitability, which makes efficient and cost-effective logistics more important than ever.
Delays at ports lead to supply-chain disruptions, which impact projects and operations in the mining industry. Out-of-gauge cargo is often on chartered vessels, where delays translate into higher costs.
“There has always been speculation about South Africa losing business to east coast ports like Maputo and Beira; well, it has become a reality,” says Reddy.
Longer sailing times to these ports are mitigated by the reliable and quicker turnaround times once the cargo reaches land-side. Upgrades to ports, and road and rail networks have made this possible.
“This situation is making us work harder to keep the business we have and attract new business,” says Reddy, who has worked in the logistics industry for over 30 years.
- Read the full article in our Freight Features edition on "Mining & Minerals".
