BMW South Africa implements dual port export model

Due to increased production, the Bavarian automotive manufacturer has sought another port, in order to facilitate exports in addition to those from Durban port via Transnet. BMW 3 Series sedans are now exported from Maputo in Mozambique.

"BMW South Africa has increased its production output with the introduction of a third shift which was implemented towards the end of last year. Our overall annual production figure will increase from around 50,000 units per year to more than 80,000 units in 2013," says Bodo Donauer, managing director of BMW South Africa.

"At the same time, the total number of BMW vehicles exported from South Africa will more than double from around 33,000 to almost 70,000 vehicles per year. In line with this increase in volumes, we have had to look carefully at our export logistics and, in this regard, using Maputo in conjunction with our existing export supply chain in Durban makes sound business sense," continues Donauer.

An integrated distribution process

Approximately 20% or around 14,000 vehicles per year will be exported using the Maputo car terminal in Mozambique. At the same time, BMW South Africa remains committed to working closely with Transnet and will be increasing the total number of BMW vehicles exported through Durban by almost 20,000 vehicles - an increase of more than 60%.

Grindrod Freight Services, which currently handles road freight logistics for BMW South Africa, serves as the private operator of the concession for the Maputo car terminal and has been instrumental in cementing the deal.

"We have aligned our service offering of road freight logistics, clearing and forwarding and terminal services with the customs requirements of South Africa and Mozambique to provide an integrated process from the BMW Vehicle Distribution Centre in Rosslyn to on-board the vessel in Maputo," says Walter Grindrod, executive, Group Business Development, Grindrod Freight Services. "We have run trials to test the system and are confident the export route is sound. Going forward, we expect two shipments per month to take place with these export vehicles destined for markets in Japan and other parts of the East."

Sustainable logistics services

Given the country's location with respect to the large automotive markets of the world, transport and logistics services have always been a challenge for South African automotive manufacturers. To combat these challenges, BMW South Africa has made investments and implemented plans in order to ensure sustainable, long-term logistics services for its expanding exports programme, to improve existing supply-chain corridors and validate any potential new ones within Southern Africa.

"To play on a world stage, we need to ensure we are competitive in all elements of the manufacturing process including supply chain and logistics. This means we have to develop top-quality and productive ports which operate at high levels of efficiency at competitive prices to ensure a stable logistics environment. The decision to use Maputo is the first step in ensuring the development of a robust, well thought out and competitive logistics network, which includes access via multiple SADC ports and can easily incorporate sea, rail and road freight. The idea of a Southern African development community is the ultimate vision for the type of supply chain needed to fully service South African manufacturers," Donauer concludes.

For more information, go to www.bmw.co.za.