Sastry: Africa’s mining industry offers high margins and long-term contracts
(Posted on 20/06/24)
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, ship operators 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, CEO of Adhira Shipping and Logistics (ASL).
“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.”
Latest News
Euroports secures long-term future in Venice with 25-year deal
(Posted on 31/03/25)Euroports has announced the renewal of the concession for Terminal Rinfuse Venezia (TRV) at Porto Marghera... Read more
Panama Canal promotes sustainable maritime shipping with NetZero Slot
(Posted on 27/03/25)Contributing to the commitment of achieving net zero emissions by 2050, the Panama Canal authority has... Read more
Saguenay Port brings electric-driven Konecranes Gottwald MHC to Canada
(Posted on 27/03/25)The Saguenay Port Authority in Quebec has ordered a Konecranes Gottwald ESP.6B Mobile Harbor Crane for... Read more
Cas König joins North Sea Port as new CEO
(Posted on 18/03/25)North Sea Port Supervisory Body has appointed Cas König as the port authority's new CEO. Kö... Read more
Inspirational leader, Trois-Rivières Port President and CEO, Bovin to retire this year
(Posted on 12/03/25)After 19 years at the helm of the Port of Trois-Rivières and a career rich in major projects,... Read more
State-of-the-art cranes for Egyptian multipurpose cargo terminal
(Posted on 06/03/25)Abu Dhabi based AD Ports Group, an enabler of integrated trade, transport and logistics solutions, has... Read more
Call for swift implementation of Europe’s Clean Industrial Deal
(Posted on 01/03/25)The Port of Rotterdam and Port of Antwerp-Bruges have welcomed the Clean Industrial Deal, through which... Read more
Canadian Government invests $87.1M in Trois-Rivières Terminals project
(Posted on 28/02/25)The Canadian Port of Trois-Rivières is delighted to have received major funding of $87.1 million... Read more
Katoen Natie invests in four all-electric Konecranes Gottwald MHCs
(Posted on 15/02/25)Belgian logistics giant Katoen Natie has ordered four all-electric Konecranes Gottwald Mobile Harbor... Read more
AD Ports reports another year of record results
(Posted on 14/02/25)AD Ports Group, Abu Dhabi based enabler of integrated trade, transport and logistics solutions, has... Read more
