Bidvest Tank Terminals delivered growth in volumes and profitability, despite fuel and vegetable oil volumes that were lower than the prior year. The Liquefied Petroleum Gas (LPG) terminal was commissioned at the end of October 2020 and is operating as planned.
South African Bulk Terminals (SABT) delivered an outstanding result. Overall volumes at 3.1 million tonnes were 12% up on prior year comprising mainly maize export volumes at 1.2 million tonnes, wheat import volumes at 1.4 million tonnes, and rice import volumes at 356,000 tonnes.
Bulk Connections produced an excellent result, driven by the commodity export boom, which is reflected in the bulk volumes growing by 17%. A record 4.6 million tonnes were handled, comprising 2 million tonnes of manganese, 2.1 million tonnes of chrome, and iron ore (which was handled for the first time), and mainly accounted for the remaining volume. An enhanced focus on operational efficiencies also yielded benefits.
Bidfreight Port Operations (BPO) had a spectacular year after a 72% increase in bulk volumes, mainly due to export minerals. The team's ability to secure cargo volumes in the second half of the year and the reduction in operating costs, a benefit from the restructuring conducted in 2020, boosted this performance.
Bidvest SACD, Bidvest International Logistics, Naval and Manica Group Namibia experienced a tough year, where trading was characterised by significantly low volumes, shortages of containers and exponential increases in sea and air freight costs.
A key highlight is that SABT, Bulk Connections and BPO reported ROFE in excess of our expectation, an outstanding performance for capital intensive businesses boosted by the commodity volumes.
Looking forward
The tenure extension of port leases remains a key strategic objective and focus area, which is receiving the requisite attention.
Maize exports are expected to remain robust and the zero-based import duty on wheat, should continue to have a positive impact on imports despite expectations of a bumper domestic crop.
Continued LPG volume growth is expected in the new financial year.
There are, however, concerns about freight rates to and from Southern Africa that have increased significantly, and this trend is expected to continue for some time. Additionally, poor efficiencies at the South African ports are an issue together with the continued impact of COVID-19 on global trade and supply chain constraints.
The division is focussed on various major projects, which include the new Durban and Richards Bay Port Masterplan, and back-of-port services at the Saldanha port.
