Estimated reading time: 2 minutes
Image:ALS
Speaking at this year’s Drycon conference in Mumbai, Captain Pappu Sastry, CEO of Adhira Shipping and Logistics (ASL), highlighted that Africa’s mining sector is entering a golden age, brimming with opportunities for investors, shipping lines, and logistics companies.
Africa, a continent of over 1.4 billion people, is witnessing rapid growth in its mining sector. Sastry noted, “We are experiencing a rapid expansion in the development of junior mines in Africa along with increased demand for commodities from existing mines. There are opportunities to invest in machinery, trucking, and ports with high returns and lower risk.” This surge is creating a wealth of opportunities across the continent.
For the bulk shipping sector, cargo volumes are on the rise. Owners can add significant value to the African commodities export sector, securing contracts lasting up to 10 years. There’s a strong demand for handy feeders for granites, construction materials, and clinker. “In the charter market, ASL is seeing bareboat contracts for Cape, Kamsarmax, Handy, and Mini-Bulk for three, five, and 10 years. In the Cape sector, there are opportunities in the bauxite, manganese, and iron ore sectors from West Africa to India and China,” Sastry explained.
Additionally, there is high demand for tugs, barges, and floating cranes, with long-term contracts available. Africa’s vast land mass, larger than China, India, the continental U.S., and most of Europe combined, underscores the importance of efficient shipping and logistics for success across the continent.
Land-based transport is also underserved. There’s a pressing need for trucking and rail services to connect interior mines to coastal ports. Moreover, investments in port management for barge jetties, multi-user ports, and warehousing are crucial.
“There are major opportunities for investors large and small to reap the rewards in this burgeoning market,” Sastry emphasized, noting that the primary challenges are the shortfalls in equipment, management, machinery, and infrastructure, all of which can be addressed through adequate investment.
Source:Marine Link
