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10 November 2023

Dube TradePort: Charting a Course for Cargo Growth Amidst Challenges

In the fast-paced world of international trade and logistics, South Africa's Dube TradePort stands as a testament to adaptability and resilience. Over the past two or three years, the Dube Cargo Terminal operated by Dube TradePort Special Economic Zone has made significant strides driven by its strategic imperatives.

One of the notable achievements in this period has been the relocation of wildlife, including the iconic rhinos, as part of a broader effort to conserve these magnificent creatures. With moves to increase rhino populations across various parts of Africa, Dube TradePort has played a pivotal role in these airlift operations from KwaZulu-Natal South Africa.

Simultaneously, Durban's oil refinery and other regional mining operations have needed urgent shipments of critical components from time to time, over the last 10 years, which Dube Cargo Terminal has facilitated through its specialised outsized cargo handling facility, with hoists, mobile cranes, and conveyor systems, that have allowed it to handle bulky and outsized goods like large pipes, machines, vehicles, live animals, as well as 20-foot ocean-going containers. It has been during these times that, the Dube Cargo Terminal has been presented with an opportunity, to demonstrate its flexibility, efficiency and reliability in the coordination of both operations and the administration required to deliver urgent components in a tight window.

Moreover, humanitarian efforts within the region, have underscored the versatility of Dube TradePort's cargo operations. When devastating floods hit KwaZulu-Natal in 2022 and when tropical Cyclone Idai left thousands in neighbouring Mozambique needing humanitarian relief.

The Dube Cargo Terminal and Durban's King Shaka International became the logistical staging area, facilitating the swift movements of aid and supplies. While such charter traffic has since slowed, Dube Cargo Terminal's overall cargo throughput has surged by an impressive 22% compared to the previous year.

Intriguingly, this growth has been driven, in part, by the increase in passenger flights, which have injected additional belly capacity into Durban's operations. In the dynamic landscape of logistics, adaptability remains key.

Within the Special Economic Zone (SEZ), Dube TradePort is carving a niche in manufacturing. However, it's the sea freight that has been gaining traction. With cost pressures affecting forwarders and businesses alike, sea freight has become an option for businesses and products that can endure the longer transit times.

The impact of lockdowns in 2020 was keenly felt, disrupting the flow of airfreight directly between Dube Cargo Terminal in KwaZulu-Natal and international markets. At the time central point for handling air cargo became Johannesburg. While capacity is gradually returning to Durban, there remains a concerted effort to recapture the market share of cargo produced in KwaZulu-Natal.

Interestingly, it's understood that a significant portion of the cargo, which originates within Dube Cargo Terminal's catchment area, ends up being trucked around 600 kilometres north to Johannesburg for outbound flights. This has driven Dube TradePort to implement a cargo development strategy, which aims to drive the consolidation of goods locally, and pave the way for a dedicated freight service in the long term.

Dube TradePort's vision extends beyond developing its cargo volumes. The establishment of business travel and leisure air services between regional destinations has the potential to stimulate trade growth significantly. A prime example of this dynamic is the direct flight between Durban and London, which catapulted the UK to the top in terms of trade and cargo volumes, demonstrating the catalytic effect of direct flights on trade.

In the realm of project cargo, proximity is paramount. Ideally, flights should align with the source or destination of goods to minimize last-mile delivery complexities. Time-sensitive operations necessitate airfreight, making precise planning and execution a priority.

To drive future growth, Dube TradePort has commissioned research to understand its position and opportunities within the cargo market fully. This research forms a cornerstone of the cargo development strategy, enabling the organization to prepare for an anticipated post-pandemic resurgence.

The essence of Dube TradePort's success lies in its multimodal approach. Situated within the bustling port city of Durban, it has emerged as a competitive force in the region. Collaborative projects with port operators, including plans for an automotive sector hub, showcase the port's commitment to diversification and innovation.

Dube TradePort's journey over the last five years reflects its adaptability in the face of challenges. With a strategic focus on cargo development, multimodal transportation, and research-driven insights, it is poised to continue its upward trajectory, contributing to the growth and resilience of the South African logistics landscape


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