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Manufacturing & Parts News South Africa

Maputo to export 14,000 BMWs a year

BMW SA is to export cars through the Mozambican port of Maputo because the Durban Harbour cannot cope with the increased production from the Rosslyn, Pretoria plant since BMW began building the 3-Series sedans last year.
Maputo to export 14,000 BMWs a year

Annual production at the assembly plant has risen from 50,000 to about 80,000 units and exports from 33,000 to almost 70,000.

Durban can handle most of the extra vehicles but BMW SA's managing driector Bodo Donauer says 14,000 cars will be shipped annually through Maputo.

He says the move is "the first step in ensuring the development of a robust, well thought out and competitive logistics network, which includes access via multiple Southern African Development Community ports and can incorporate sea, rail and road freight".

The motor company began exploring the Maputo option some years ago after becoming disenchanted with SA's inefficient rail and port services. Donauer says the export split "makes sound business sense" but it will also give him the opportunity to properly assess Maputo's suitability for longer-term use.

The port has invested substantially in a car import and export terminal, in the hope of attracting business from SA's three Pretoria vehicle manufacturers - BMW SA, Nissan SA and Ford SA - and this will be the first sustained test of its capability.

Grindrod Freight Services, which manages BMW SA's road freight, is the private operator of the concession for the Maputo car terminal. Business development executive Walter Grindrod says two 3-Series shipments will pass through Maputo each month, on their way to eastern export markets. Japan accounts for 14% of all BMW SA exports, China 6% and Australasia 4,4%.

The main destination for Durban 3-Series cars is the US, which swallows more than half of the Rosslyn production. Less than 20% of the cars made are sold in SA.

Source: Financial Mail via I-Net Bridge

Source: I-Net Bridge

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