Universal Africa Lines [UAL], the specialist shipping line to the West African oil and gas fields, ended its first year in South Africa in bullish mood, opening an express direct shipping route to Nigeria.
The new route makes UAL-SA the first break-bulk [non-containerised, packaged cargo] shipping service from South Africa to call directly on Nigeria - an oil-rich country and one of Africa's leading economies, says Haakon Røstad, Managing Director of UAL-SA.
Previously, UAL's ships off-loaded and took on cargo in Durban, Cape Town, Walvis Bay, Lobito, Luanda [Sonils], Soyo, Pointe Noire , Port Gentil, Malabo, Onne [Port Harcourt] and finally, Lagos.
The new route comes at a time of accelerating growth for UAL-SA. After setting up in Cape Town early in 2009, the company set out on its maiden voyage in May of that year. Since then it has completed 21 fortnightly sailings up the west coast of the continent, building up a loyal client base of South African industries supplying exploration projects, mines and the secondary industries around them.
According to Haakon , UAL's customers are from industries as diverse as steel, paper, explosives, heavy equipment manufacturing, construction material and chemicals. Their numbers have increased sufficiently over 12 months to provide a solid basis for growth, starting with the Nigerian connection.
Keeping it African
The announcement further comes at a time of strengthening diplomatic ties between South Africa and Nigeria and predictions of an imminent boom in bilateral trade.
Indirect [European] trade via SA into Nigeria is also set to flourish. On President Zuma's recent return from the UK, the South African government announced plans to double trade with the UK over the next 12 to 24 months, and for SA to become a gateway for European companies into Africa.
These two developments coincide with increased tensions in the Niger Delta, which has led to Nigeria-based companies relocating to the southern tip of the continent. Securely in the midst of South Africa's manufacturing heart, Cape Town has become a refuge for these companies.
As a result of these factors, there has been a general increase in procurement within South Africa, an opportunity that local firms should embrace, says Haakon.
Schedule
The first direct sailing will be at the end of May, starting in Durban and calling on Cape Town and Walvis Bay before sailing into Apapa Harbour, Lagos, 12 days later.
The route will operate every three weeks, and will on its return offer round-trip export shipments out of Nigeria to other West African countries and East Africa, via Durban.
Exclusive
To streamline the service, UAL has secured an exclusive berth at the Apapa oil base facility belonging to logistics firm Eko Support Services. In terms of this arrangement, UAL customers benefit from immediate berthing, speedy clearance in a customs-free zone, two weeks free storage and special tariffs for unloading and delivery to clients.
The Eko facility offers 50 reefer plugs and a depot with capacity for 300 containers, operating around the clock with full guarded security.
In addition, the door-to-door service offers barge delivery to Niger Dock on Snake Island across the Niger River.
UAL has signed Premier Logistics Services as its shipping agent, which offers heavy-lift capacity of up to 300 tons.
"Never before has trade between SA and Nigeria looked this good," says Haakon and concludes, "We hope the new route will further stimulate trade and commercial activities between SA and Nigeria as well as the rest of Africa."