Deciding to spend $50 million on a port in Angola is not as easy as it may sound, but, for the consortium in charge, it is not only reasonable, it is the start of a much longer business project.

The business group is Multiterminais - consisting of the Nile Dutch Africa Line BV, NDS Lda, and Copinol SARL - and the $50 million is being used over the next five years to build new warehouses and offices, increase security, and expand the cargo terminal for the port of Luanda.

The upgrade is part of a drive to turn Angola's major port into one of Africa's leading transshipment hubs.

It is also part of a vision. According to Leonel da Rocha Pinto, general manager of Multiterminais, "The port is an agent for change and the cargo terminal will contribute to that.

"Moreover, the improvements are very important because the country is widening its horizons and making an effort to boost production."

The Angolan government privatized the port in 2005 and gave Multiterminais a 20-year lease because they were better, faster and more efficient than the competition.

Because port logistics are important for the local economy and space at the port has always been a premium, a sister company, the Angola-owned Multiparques, is working with Multiterminais to provide better cargo handling and storage solutions for importers and exporters.

Multiparques is in charge of management, terminal vehicles, containers, warehouses, and the distribution of goods, and is starting to make a difference.

Multiparques has allocated an additional $70 million to develop a dry port at Viana, 15 miles inland from Luanda's port. This is expected to help ease congestion and keep transportation and cargo costs lower, so Angola's consumers can ultimately reap the benefits, as the price of goods goes down.

Rocha Pinto said that he sees the benefits since containers can be removed immediately after they are emptied and the merchandise stored. This means lower costs and a shorter turnaround time, with containers being returned to the clients in only two to five days.

Rocha Pinto is also spearheading a drive to build new cold storage facilities. This new phase of development will be useful to importers of perishable goods, and will provide a storage facility for the growing number of local producers, before distributing their goods in Luanda.

(China Daily 09/16/2011 page27)