Namibia has been working hard to establish itself as a regional logistics hub. However, growing mining activity, rising freight volumes and mounting pressure on existing infrastructure are creating new challenges for the countrys logistics sector. Frans Visser, operations executive at Grindrod, says that while Namibias position on the West Coast presents significant opportunities, investment in rail, dry bulk facilities and port infrastructure will be critical if the country is to remain competitive as regional trade corridors continue to evolve. There is a need for a dry port facility to support growing mining export volumes, he told Freight News. Low volumes are currently being transported by rail, placing disproportionate pressure on road freight, where significantly higher volumes are being moved, he said, highlighting the need for expanded rail solutions in the country. We are seeing increased mining activity for minerals such as copper, iron ore and manganese, supported by strong investment flows. Clean energy initiatives and gas discoveries are driving the need for port expansion and infrastructure development even further. As congestion on the East Coast continues to increase, the West Coast is becoming an increasingly attractive alternative for cargo flows originating from the Democratic Republic of the Congo, Zambia and the northern regions of South Africa, he said. As the Lobito Rail Corridor and port infrastructure in Angola are developed, it will be critical for Namibian port rate structures to be carefully managed and remain flexible in order to remain competitive against alternative trade routes that benefit from rail-based transport, said Visser. He added that private sector investment in the sector was also increasing. Grindrod has developed a 4 000m2 warehouse within the 50 000m2 area it manages at the port. He said future infrastructure developments would be driven by market demand and sustained volume growth. Asked about his outlook for Namibia, Visser said he remained positive about the countrys long- term growth potential. Key trends that we believe will continue to shape the future of the freight and logistics sector in the country include investment in rail infrastructure, regulation to manage the volume of road transport, changes to bond requirements and the development of dry bulk facilities. LV
View the discussion thread.
