Global depot and port terminal operators, APM Terminals officially launched its operations in the Coega Industrial Development Zone (IDZ) yesterday, establishing a modern, first-class depot to meet the needs and expectations of shipping lines and cargo owners.
The R25-million investment, in the first phase, will provide for a full range of services for dry and reefer containers, which will include landside services such as repairs, handling, storage, monitoring and container conversion, amongst others. Apart from these services, APM Terminals will also operate a trucking yard from its depot.
“We are absolutely serious about service,” said Imtiaz Mahomed-Ally, APM Terminals Chief Operations Officer and Director. “In today’s time of containerisation you need a strong landside operation or service levels will be affected and the cost of doing business would rise, paralysing our ability to compete on a global level. This is the main significance of being involved in South Africa – our ability to enhance competiveness and high levels of service delivery.”
The company said it had long had the Coega IDZ on its horizon as a site for expansion on the African continent, but that it was waiting for the Port of Ngqura to become fully operational.
“A Nelson Mandela Bay depot has always been part of our plan. We were just waiting for the Port of Ngqura to be fully operational and shipping lines to show commitment to use this port before we embarked in a depot investment in the Coega IDZ. This also represents a commitment from APM Terminals and our sister companies Maersk and Safmarine. It shows we are fully behind the success of both the Port of Ngqura and to Coega IDZ going forward,” Mahomed-Ally added.
The Coega Development Corporation (CDC) said the investment was a testament to the enabling potential of the Port of Ngqura and its linkage with the IDZ. “When President Jacob Zuma officially opened the Port earlier this year, we really hit a milestone – not only because the port was lauched, but also because the huge implications of having a modern deep-water Port adjacent to an IDZ could finally be realised,” said Ayanda Vilakazi, CDC head of marketing and communications.
“This unique selling point is one of the positioning elements in our investor attraction and retention strategies. Now that the port is operational, viability of the IDZ is no longer a question, but a hard won reality that is seeing investors – like APM Terminal – capitalising on the port and the IDZ offering and their seamless interconnection.”
Vilakazi welcomed the company to the IDZ saying their arrival brought a depot operator closer to port-side, “a move that can only but benefit our investors”.
Currently depot operators are situated some distance from the port where the opportunity to expand is limited and space is a challenge.
“Seeing the demand of the shipping lines and cargo owners, it was only appropriate to open a depot that services the industry and, most of all, reduces cost by giving quicker turn-around times, limiting road and depot congestion and operating within five kilometres of a port. This approach assists the industry to remove heavy vehicles from public roads and frees the industry to operate differently from the traditional set up which creates a range of challenges. Essentially we are modernising,” said Mahomed-Ally.
APM Terminals a subsidiary of APMM Group based in Denmark, operates depots and terminals around the world, operating in over 156 countries and employing over 24 000 people. It launched operations in South Africa in 2000, opening its original depot in Cape Town. Today it has depots in Durban, Johannesburg, Pretoria and Walvis Bay.
Ally said the company was proud to open a depot in Nelson Mandela Bay, but that it would not be stopping at the Port of Ngqura in its Africa expansion. “We are busy looking at a depot in Beira and other locations in southern Africa. We are here to stay and expand our foot print in depot operations in southern Africa.”
APM expects to create 20 full-time jobs and space for approximately 15 seasonal workers on short-term contracts. Despite the limited number, it confirmed that there would be a series of opportunities open for local service providers, and SMEs in particular, to benefit from the investment through various contracts.
This facility, located in Zone 1 of the Coega IDZ, will be headed up by Jeff Williams an industry expert with a passion for reefers. All employees have been sourced locally, from Nelson Mandela Bay. “APM is here to stay – the only thing that will remain constant will be how we consistently change to better serve the maritime industry for mutual benefit,” said Mahomed-Ally.
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