BULK CONNECTIONS
Increased capital expenditure
in the recent past has created
world-class facilities at our
Durban site, ensuring increased
support from major customers.
Throughput rose by 40% to 2,5
million tonnes, taking the
team well above their revenue
and trading profit targets.
Strong demand came from manganese
exporters.
Continued volume and trading
profit growth is anticipated.
Management will pursue opportunities
to handle a wider range of
products at higher margins.
The possibility of creating
strong revenue streams by operating
customer facilities at harbours
in other African jurisdictions
will be investigated.
ISLAND VIEW STORAGE
Strong demand for liquid
bulk storage facilities underpinned
good performance by IVS. Despite
fire damage at the Durban site
early in the period, revenue
and trading profit were ahead
of expectations. The team are
to be congratulated on their
response to the fire and their
work to ensure rapid recovery.
Efforts to increase capacity
at Durban and Richards Bay
will continue.
Competitor pressures can be
expected to increase. Even
so, further revenue and trading
profit growth is forecast as
utilisation should remain high
across expanded facilities.
BIDFREIGHT PORT OPERATIONS
Intense focus on a diversification
strategy proved timely as steel
and pulp exports continued
to decline. Excellent revenue
growth was achieved on the
back of higher ferrochrome
exports and increased volumes
of cement clinker and soya.
Trading profit was well above
target.
The trend to the packing of
bulk products into containers
underpins the stronger performance,
but considerable strategic
challenges have to be addressed,
including the growing likelihood
of falling steel and rice volumes.
Demand for warehousing at soften.
However, continued investment
in support of key clients will
strengthen relationships in
growth areas.
Opportunities will be pursued
for more bulk container packing
contracts and container handling
business.
RENNIES DISTRIBUTION SERVICES
Results were disappointing
as competitive pressures intensified.
Revenue and trading profit
were below prior levels. Volumes
in support of certain retailers
fell significantly. The paper
products division was also
under considerable pressure.
Restructuring following a
contract review was almost
complete by year-end and benefits
will accrue in the new period.
Warehousing has been downscaled
in some centres. The chemicals
component of the business is
being expanded and a new pallet
division is being launched.
Focus will be maintained on
profitable accounts.
SACD FREIGHT
Container depot operations
were affected by the slowdown
in Asian imports. However,
replacement business was secured
and the team put in a good
performance. Trading profit
growth was in line with expectations.
Many facilities are operating
at close to capacity, resulting
in an increase in equipment
costs. Capacity constraints
are becoming a concern in Durban
and Gauteng. We hope soon to
obtain local government approval
for work on
20 000m2 R150 million
expansion and relocation programme
will take two years to complete.
SOUTH AFRICAN BULK TERMINALS
The country’s most efficient
grain handler in expanded capacity
and new systems at Maydon Wharf
were vindicated, with volumes
at exceptional levels. The
SABT team has won a well-deserved
reputation for exceptional
efficiency and notched up a
series of vessel unloading
records. Volumes eased in the
final quarter, with a shift
towards grain exports suggesting
that growth may ease in 2009.
NAVAL
Results were disappointing
for our Mozambican
business. Competitive
activity has become
intense and margins
have been eroded.
Coal volumes fell
as did the volume
of bagged cereal
cargo. This was counteracted
to some degree by
higher ferrochrome,
sulphur and sugar
volumes. Trading
conditions are expected
to remain challenging.
