Logistics News

One Global takes advantage of African mining boom

Queensland-based freight forwarding company One Global Logistics expands into Sub Saharan Africa in Megafreight JV

Dewcember 6, 2011

Queensland-based freight forwarding company, One Global Logistics has expanded itd
operations into Sub Saharan Africa in a joint venture with independent South African-owned freight and logistics group Megafreight Services.

The deal will enable the streamlining of import, customs and transport services offered to Australian customers wishing to access the 54 countries which form the continent of Africa and follows six months of commercial testing and discussions with shipping lines, airlines, the Queensland Government and Austrade.

One Global Logistics Chief Executive Officer James Sparke says the Megafreight joint venture coincides with an export boom to South and West Africa, driven by a rush of Australian exploration and development, particularly in iron ore and gold.

The Department of Foreign Affairs and Trade confirms 292 Australian mining and energy companies currently operate across almost 40 African countries, with investment dollars hitting an estimated $20 billion.

Approximately 40 percent of Africa’s overseas mining projects are held by Australian companies-more than any other region.

In addition, there are more than 500 individual mines and exploration projects in Africa in which Australian companies have a significant interest.

“This intensifies the need for reliable and cost effective transport systems,” Sparke says.

Sparke, who anticipates his company’s new Africa-Australia gateway will be well received by Australian mining and resource companies, says up until now, expanding into Africa had been cost prohibitive, inconsistent and sporadic.

“Our joint venture with Megafreight will allow companies, especially those located on the Eastern Seaboard, to cost-effectively access emerging African markets,” he says.

Sparke points to Mozambique, which is a mining and exploration hotspot.

Home to a number of heavy mineral deposits, Mozambique is currently considered to possess one of the world’s largest resources of coal.

“Yet, the building of infrastructure for transportation of these valuable commodities constitutes one of the main challenges for Mozambique,” Sparke says.

One Global Logistics already has shipments underway, including American-made drill rigs from Brisbane to Africa via break bulk cargo, and plant and equipment shipments to Maputo, Cape Town, Ghana and Barkina Faso in Western Africa.

More shipments of heavy plant and equipment, railroad and port infrastructure to mining destinations such as Botswana, Mozambique and Namibia, are also in the pipeline.

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