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Africa’s mining industry offers big opportunities for shipping, port and logistics sectors

Dubai – Speaking at this year’s Drycon conference in Mumbai, Capt. Pappu Sastry, CEO of Adhira Shipping and Logistics (ASL) said that Africa’s mining sector is entering a golden age where opportunities are open to investors, shipping lines and logistics companies.

Africa is a continent of more than 1.4 billion people, with a mining sector that is growing rapidly and investment opportunities across the continent, according to Capt. Pappu Sastry.

“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,” he said.

For the bulk shipping sector, cargo volumes are available and increasing, while owners can add value to the African commodities export sector while enjoying contracts of up to 10 years. There is strong demand for handy feeders for granites, construction material 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 shipment COA sector, there are opportunities in the bauxite, manganese and iron ore sectors from West Africa to India and China,” said Capt. Sastry.

ASL is also a market leader in the bulk transhipment sector and demand is also high for tugs, barges and floating cranes with long-term contracts available.

Africa’s land mass is bigger than China, India, the continental U.S., and most of Europe combined, meaning that effective shipping and logistics are key to success across the continent according to Capt. Sastry.

Land based transport is also under served and there is a need for trucking services and rail services connecting the interior, where many mines are located, to the coastal ports. There is also a need for investment in port management for barge jetties and multi-user ports as well as warehousing.

“There are major opportunities for investors large and small to reap the rewards in this burgeoning market, with the only inhibitor being the shortfall in equipment, management, machinery and infrastructure, all of which can be resolved through adequate investment,” Capt. Sastry said.