Supply Chain Digital revisits the South African container vessel firm and finds a company just as driven as it was before
Written by Ben Lobel & Produced by Dee Nazer
Based in Durban, South Africa , Mediterranean Shipping Company SA (MSC) specialises in the running of container vessels and provides global coverage linking South Africa directly with Europe, the UK, U.S., Asia, the Middle East, the Far East and Australia, as well as the key points of Africa’s West Coast, East Coast, Indian Ocean Islands, Madagascar, Angola and Mozambique.
When we last spoke to the firm, it operated in excess of 400 container vessels with an intake capacity of 1,250,000 twenty-foot equivalent units (TEU), and such impressive output is mirrored today.
BECOMING A GLOBAL PLAYER
MSC was founded in 1970 as a private company by Sorrento ship owner, Captain Gianluigi Aponte, when he bought his first ship. Since then, MSC has experienced ‘phenomenal growth’ and over the past decade, has grown from a small conventional ship operator to become one of the world’s leading shipping lines. In 2003, MSC consolidated its position as the second largest carrier in respect of container slot capacity and the number of container vessels operated.
According to MSC, such ‘spectacular growth’ has been achieved internally through organic growth , rather than through acquisitions or mergers. Together with the CEO’s policy statement, MSC’s audit management system is the main driver of this growth, says Marketing Director, Glenn Delve.
The management system aims at consistently improving upon service levels within the shipping community and its willingness to initiate change to meet the requirements of clients and principals.
“MSC’s objectives for quality are to improve upon our service level within the shipping community and to always be prepared to initiate change to meet our client’s requirements,” says Delve.
“To ensure that those objectives are met on an ongoing basis, my management colleagues and I are committed to the maintenance and improvement of our Quality Management System, its inherent structures and disciplines, and ensuring that the system is understood at all levels of our organisation and adhered to by all relevant staff.
“This Policy Statement is periodically reviewed to ensure its continuing suitability.”
THE PROPERTY MARKET
MSC has significant investments in the South African property market; combined, its office buildings are worth R220 million and have become landmarks in Durban, Cape Town, Johannesburg and Pretoria.
The Port Elizabeth office was built in 2004. Built from an existing national monument, the restoration alone cost R6.5 million. “The importance of the Port Elizabeth offices is that MSC bought this heritage site which was in disrepair and restored this heritage site to the building it is today,” says Delve.
Alongside this development is the Italian Village, built in 1996 at Umhlanga Ridge. “The Italian Village was created to house the various ex-port community in a world class village based on the philosophy of the company being Italian,” says Delve. The site, which is valued at R30 million, is comprised of seven houses to accommodate MSC’s Italian personnel and their families.
DIVERSIFICATION
Another success for MSC has been the diversification into the business of the company’s own container depots, situated in Durban, Port Elizabeth, Uitenhage, Cape Town, Johannesburg and Rosslyn, Pretoria. “This was a strategic decision,” explains Delve. “And was due largely to the facilities available at the time being unable to meet MSC requirements.
“The depots were created to benefit our customers as we control the full and empty depots which enable customers to deal with one company and not third parties.
“There are further advantages for customers in being able to utilise our depots for storage at preferential tariffs as they are customers of MSC.”
The newest depot is Port Elizabeth, which is situated in Nelson Mandela Park near Uilenhage. The site became fully operational in April 2006. There is also a second Durban depot under construction, which will see MSC relocate from the current Durban depots to a much larger and more user-friendly site.
MSC IZIVUNGUVUNGU FOUNDATION FOR YOUTH
The MSC Izivunguvungu-Foundation for Youth is a Non-Profit Organisation, which is funded by MSC. Founded in 2001, in the port town of Simonstown, Izivunguvungu is the first school in South Africa to provide opportunities for disadvantaged youths and so far has benefitted around 250 children, who are schooled academically as well as in all aspects of sailing and yacht building. Some of these students are amongst the crew who sailed in the America’s Cup which culminated in Valencia in 2007. MSC entered into an agreement with Izivunguvungu and the South African Navy in 2003.
MSC has contributed significantly to community enhancement and training schemes such as ABET, which has held previously disadvantaged staf f members and MSC Izivunguvungu-Foundation for Youth.
BECOMING THE BEST
In 2007, MSC was named “Shipping Line of the Year” for the sixth time in 11 years (previously in 2005, 2003, 2002, 2000 and 1996) by Lloyds Loading List, an achievement not matched by any other shipping line. The company also won the prestigious Carrier of the Year Award at the Toronto CIFFA Awards in May this year, along with Carrier for the Caribbean, Middle East and Mediterranean regions.
As Delve explains, the goal now is to become not just the best shipping line in the world, but the largest. In order to achieve this, MSC will continue with its “tried and tested policies where customer is king”.
Organic growth will also drive this, says Delve. “Our growth is organic and that is determined by our new build vessels, and our growth is also determined by the vessel availability that we have.”
With a clear goal in sight and industry recognition, MSC looks set to meet its target.
FACTS AT A GLANCE
COMPANY NAME: Mediterranean Shipping Company
MARKETING DIRECTOR: Glen Delve
OPERATIONS: Shipping
EMPLOYEES: 3500
www.mscgva.ch