Expert cargo handling for Mozambique’s industries

September 9, 2024

Athol Emerton, managing director of LBH in Mozambique, talks to The Energy Year about managing complex logistics projects for companies in the mining, commodity and LNG sectors and moving record cargo volumes through the Nacala terminal. LBH is a shipping agency and project logistics provider that operates in major commodity ports in Southern Africa.

What is LBH’s position within the logistics sector in Mozambique?
LBH specialises in the movement of cargo from land-based operations such as mines to seaports. It is the most complex part of the logistics chain, as it is where commodities change ownership. We protect this critical part of the supply chain for our customers.
We have a very long history with the mining sector and strong relationships with most of the major traders and mining companies around the world who trust us to move their cargo through complex logistics chains in Africa.
Let’s face the facts, there have been some inland infrastructure failings in the past few years. The export of bulk commodities by rail has dropped significantly and cargo is being moved by road. Managing 3,000 trucks a week is considerably more challenging than managing 20 trains. The work is becoming more complex and difficult, but we believe that we have a better handle on it than most.

LBH recently joined forces with the Rhenus Group. How is the partnership evolving so far?
Rhenus brings fantastic logistics expertise and a desire to expand its business alongside LBH in the rest of the world. We believe the timing is great for the development of first-class European logistics capabilities in Mozambique, as there are not many distribution and logistics chain managers in Mozambique with that expertise.
Our focus in Mozambique is to uplift the standard of logistics. Distribution systems have been constrained for years. There has been an intent to improve them, but it has been difficult between upheavals in the north and massive weather disruptions.

 

What is your assessment of the logistics capabilities of Mozambican ports?
MPDC has done an amazing job, and the project has proven that private investment does work. Vulcan, who is our customer, exports out of Nacala, and the coal terminal is working fantastically. Our clients are moving record volumes through there and we are very proud of what Nacala Coal Terminal has achieved, and our part in the efficient turnaround of vessels.
Some of the smaller ports in the north would benefit from investment, which would likely require opening them up to the private sector. We gather that there is an appetite for that and we are very interested in watching that space, as there are still many opportunities to upgrade the ports in Mozambique.

Does LBH have any involvement in LNG projects in Mozambique?
We did work for Anadarko and the regional exploration surveys, and we were the agents for some of the first exploration vessels. We have provided technology and equipment to various projects at various stages.
At the moment, our JV UFL has a contract with the CCS JV, the EPC contractor for the Area 1 Mozambique LNG development, for equipment storage. We have arranged storage of their LNG equipment in Maputo since the disruption in the north.

Do you see a role for Mozambique as a regional logistics hub?
Mozambique is essentially a transit economy. Its territory provides access to around 11 different economies, and you can generate services in Mozambique for those economies. Not many places in the world can offer that. One of the few that can is Rotterdam, which is generating services for all of Europe through its port.
MPDC is beginning to play a similar role by tapping into the South African, Zambian and Zimbabwean economies from a first-class facility in Maputo, moving millions of tonnes with great service.

How does LBH approach safety in operations and the training of its staff?
We take safety very seriously. There have been times when our staff have been at risk, and that has highlighted that safety is paramount. We have a full-time safety officer and a full-time safety team that runs training programmes continuously. We comply with all the required safety standards and we simply do not compromise on any of them.

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