Divisional reviewsBusiness servicesFreight

In contrast with traditional patterns, the second half of the year, which is generally slower due to the cyclical and seasonal nature of certain commodities handled, delivered very pleasing trading.

The division’s terminal and related operations delivered an exceptional result, buoyed by a record maize export season, strong LPG demand and healthy global demand for SA commodities, specifically chrome, manganese, coal and iron ore. The terminal operations outside of SA benefited from re-directed cargo to avoid some of the bottlenecks in SA.

Despite the ongoing global sea and airfreight challenges, there was a remarkable turnaround and recovery in the international clearing and forwarding activities within the supply chain solutions business. Services closely linked to railed container movement continued to trade under difficult conditions.

During the past year, all SA businesses were negatively impacted by the socio-political unrest as well as the flooding in KwaZulu-Natal, while logistical infrastructure challenges and a cyber, ransomware attack on Transnet operations also hampered operations.

Bidvest Tank Terminals (BTT) was boosted by the growing LPG contribution and greater tank capacity ultilisation. Bulk Connections performed reasonably well, with the product mix shifting from predominantly chrome and manganese, to introducing iron ore, copper concentrates and coal. South African Bulk Terminal’s (SABT) delivered good results, with a significant maize volume increase, driven to some extent by the drought in Brazil, while wheat volumes were flat and rice volumes grew. Bidfreight Port Operations (BPO) benefited from the growing demand handling capacity, leading to exceptionally good results.

Bidvest International Logistics’ (BIL) turnaround and recovery has been remarkable, buoyed by organic growth, new business and increased volumes from existing customers recovering from the impacts of the pandemic. Naval’s performance was driven by the coal volumes handled in Maputo, which grew significantly. Manica Group Namibia (MGN) performed well after a better contribution from bulk volumes and cargo shipments. Bidvest SACD is trading under difficult conditions due largely to a slow recovery of import and export container volumes caused by the ongoing global sea and airfreight challenges impacting the supply chain. The rail disruptions also impacted operations.

Looking forward

The Bidvest board has approved two projects, an inland LPG terminal and new multi-purpose tanks, at a combined value of R1 billion. The new multi-purpose tanks will mainly be used by BTT for chemical storage in Richards Bay. The inland terminal is dependent on a reliable rail solution.

The ongoing sea and airfreight challenges are expected to continue, and the congestion in the Durban Port will remain for some time. The unreliability and poor service of the country’s rail operation, as well as its inability to provide adequate infrastructure and rail wagons, will continue to have a negative financial impact on the rail linked businesses. Berthing delays in all major ports result in customers considering other ports, such as Maputo, for faster vessel turnaround and lower demurrage costs.

Domestic demand for LPG imports is expected to continue and the demand for certain bulk commodities to remain strong. BPO has a distinct advantage focused on throughput and efficiencies which will also prove beneficial going forward. BIL is expected to benefit from increased air cargo capacity and a slowly normalising automotive supply chain.

MGN is well positioned to capitalise on the oil and gas developments in Namibia, and cargoes being redirected from SA and Mozambican ports.

There are several multi-year terminal projects that are being pursued, which are expected to have a positive impact, some the result of the Port Master Plans.