Africa’s opportunity to build sustainable logistics networks across mining sector

(Posted on 18/07/24)

Capt. Pappu Sastry, CEO of Adhira Shipping and Logistics (ASL) has said that Africa’s mining sector has a once in generation opportunity to adopt world-class sustainable logistics networks and drive down costs, improve efficiency and protect the environment.

There has been a rapid expansion in junior mines across Africa, as demand for a range of commodities such as bauxite, iron ore, manganese and critical minerals such as lithium, cobalt, copper, lead, zinc and tin, continue to grow. Africa is a continent of more than 1.4 billion people, with a mining sector that is growing rapidly and offers high returns.

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.

As the new mine owners set up shop in Africa, there is an opportunity to implement better planning, optimise energy use and resources and manage equipment and transport capacity more effectively. This strategy also extends to the ports where there is a need for better warehousing, bagging and distribution centres.

“We are working with, reputed and professional mining and trading companies from North America, Europe, the Middle East, SE Asia and India – to facilitate their entry strategy and initial operations set up in Africa. They want to develop their mines sustainably from the start of the project. Their stakeholders and governments are looking for them to deliver commodities in a sustainable way and they expect their logistics service providers to work closely with them to ensure the objectives are met. The key priorities are that the environment is protected and local communities also benefit from the projects”.

ASL, primarily is an asset-light shipping company, that is adopting the highest standards in the selection of vessels, managers, crew and SOP deployed for the part covering the oceans. On land, the main area of focus is employing local labour, uplifting the communities engaged with ASL and providing safety training in the use of machinery, equipment and trucks. This awareness extends to become the long-term welfare of the communities close to the mine and along the route.

“As a former sea captain, safety of our employees and the communities in which we work are my second nature. Training and education of personnel at site or in the office are the key tools in operating an efficient and economically viable safe workplace. We are working closely with our clients to identify the training needs and deliver the appropriate training programs.”

A key component in developing sustainable mining logistics, using land and sea, in Africa is increased investment in technology, machinery, trucking, floating and fixed equipment and warehousing.

“By bringing in new technology and equipment, Africa can improve efficiency and reduce costs in the long run. The opportunity to invest in Africa’s mining sector brings high returns with manageable risk. This will also drive the changes in logistics that are needed to become more sustainable.”

Adhira Shipping and Logistics, specializes in providing customized solutions tailored to each client’s unique needs. The global team of expert professionals is committed to understanding the specific logistics requirements of each project and delivering a bespoke solution.