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Early auto industry recovery sees Durban Car Terminal break annual record

THE Durban Car Terminal has broken its annual record having handled a total of 531,755 fully built units over the 12-month period ended March 2022.

That’s according to Durban Terminals Acting Managing Executive Kwazi Mabaso, who said, “Recovery from COVID-19 is happening sooner than expected in the automotive industry as car hire companies re-fleet with the opening up of the hospitality industry and back orders from preceding years materialise”.

The car terminal’s volumes had dwindled to 323,300 fully built units handled in the year ended March 2021.

The product mix sees import volumes contributing 53% of overall volumes comprising mainly entry-level cars. There has also been a surge in transhipments as the appetite for second hand cars within South Africa and neighbouring countries continues to grow.

Transshipments contributed 12% to overall volumes at just over 60,000 fully built units – a volume increase of 55% year on year. Second hand cars imported solely for the South African market made up 2% of overall volumes. Despite shortages in parts and semi-conductor chips, export volumes improved significantly from the previous year to 34% of overall volumes.

“Asian imports like Haval, GWM, Suzuki, Hyundai, Chery and JAC are doing particularly well in the entry-level category and are expected to continue in the current financial year” said Mabaso.

He added that while projections were promising in the new year, automotive manufacturers would be impacted by the Russia and Ukraine war as many sourced wire harnesses used for electrical power and communication between parts in the Ukraine. The availability of semi-conductor chips used to power vehicle features like braking systems remains very low and has already compromised export volumes.

Mabaso said a recent benchmark exercise in Thailand would help the Durban Car Terminal enhance its offering through a review of in yard planning, allowing for ample preloading space that will ensure no vehicles are received for the vessel on berth.

“Our relationship with industry is pro South Africa. The collaboration we have with original car manufacturers and shipping lines is exemplary and can only grow from hereon as we focus our energies on customer centricity.”

Mabaso said the terminal had created additional waterside capacity to keep up with the demand.

The Durban Car Terminal will from September this year handle Ford’s new Ranger bakkie. Varying models of the Chery and JAC brands will also contribute to current year volumes.

He said the terminal continues to employ COVID-19 standard preventative measures for its employees, with a full in-house vaccination program in place.