The Covid-19 pandemic has put all economic structures to the test, including one of its lungs, the port sector. The rigorous management of this crisis by the players in the field has avoided suffocation. In this interview, Joël HOUNSINOU, Managing Director of Bolloré Transport & Logistics Côte d'Ivoire discusses his company's strategy to deal with the situation and keep port activity afloat.

How is Bolloré Transport & Logistics adapting to the health crisis?

When the health crisis started in Asia, then spread to Europe, we activated our Business Continuity Plan well before the appearance of the first Covid-19 case in Côte d'Ivoire. One of the strengths of Bolloré Transports & Logistics lies in the extent of its network of agencies around the world. In fact, we have capitalized on feedback from our various subsidiaries to better understand this new crisis. In order to protect staff, we have implemented a number of awareness-raising measures on hygiene and distancing measures, we have reorganized ourselves by implementing a team rotation system and favoring teleworking for administrative functions. , etc All these measures have contributed to ensuring continuity of service and guaranteeing its quality, while preserving the health and safety of our employees and their families.

What measures have been taken at your level to reduce its shocks and maintain the supply chain of local and regional markets?

In Côte d'Ivoire, we are involved in almost all components of the market supply chain, with logistics solutions articulated around port handling, land logistics, warehousing and rail transport. This strategic positioning, coupled with a perfect synergy of these businesses, has been the key to maintaining our logistics operations, in this context of health crisis.

In the field of air transit, where the supply from scheduled services has fallen sharply, we have launched an optimized weekly cargo freight service which has made it possible to import consumer products as well as medical equipment and to export more of 420 T of mangoes from the Ivory Coast to Europe. Also, to guarantee the maintenance of the supply chain of certain supermarkets in food products, we have had to review our work organization within our contract logistics warehouses by strengthening the day and night teams, by expanding our delivery service, etc.

You are involved in the supply chain related to the export of products such as cotton, cocoa, coffee and cashew. Tell us how all these exports have been impacted by Covid-19?
We are a major player in the supply chain due to the size of our infrastructures, the size of our fleet of handling and transport equipment and the recognized expertise of our employees. In Côte d'Ivoire, we are the leading logistics provider for export products with 36% market share (excluding petroleum products).
As far as the products mentioned are concerned, cocoa exports have hardly been impacted by the health crisis, as the main campaign was almost at its end in March, when the crisis started in Côte d'Ivoire.
Cotton and cashew, however, suffered the greatest impact during this health crisis due to the closure of the borders of Asian countries, the main importers of these products. The closure of cotton spinning and cashew processing factories (India and Vietnam), following the containment measures taken in these countries, has greatly slowed down the level of exports, leading to a significant drop in the price of these two products on the international market. . The price of cashew in particular suffered falls of up to 33%, thus forcing producers to overstock or sell at a discount to meet commitments.
Thousands of tonnes of cotton could not be exported because of this global crisis and are still stored in port warehouses awaiting shipment, or permanently stored at production sites in the countryside. Thus, at the end of the first quarter, the volumes achieved for these two products were 40% lower than our initial forecasts. Beyond Bolloré Transport & Logistics, it is therefore all the players involved in these chains who are bearing the full brunt of the consequences of this crisis.

So tell us about the losses caused in terms of foreign trade, and particularly on exports of the products mentioned above?
With regard to cotton, the losses could be considerable, both for the State and for the producers. The sharp drop in the level of textile consumption on a global scale and the persistence of this health crisis are likely to have a lasting impact on the price on the international market. In addition, there is a good chance of seeing the 2020 campaign stretch out over the long term, and as a corollary, the overlapping of the 2020 and 2021 campaigns as well as the holding of large cotton stocks. This prospect is likely to greatly reduce the revenue expected from the State and that of the cotton companies.

As for cashew, despite excellent 2020 production, the decline in demand on the producer market has a considerable impact on purchase prices. At the height of the crisis, prices were depreciated by nearly 33%. As the end of the campaign approaches, producers could be forced to sell off their production to meet their commitments, without any guarantee of selling the entire production.

How do you see the prospects for the Ivorian port economy after Covid-19? What do you think are the urgent measures to be taken by the State to revitalize port activity?
The Ivorian port economy is based on solid foundations: renowned port operators, present for several decades, and an important infrastructure, which is modernizing and adapting to the country's growth. There are many development projects: the upcoming commissioning of the second container terminal in Abidjan, the recent modernization works of the Ro-Ro Terminal, the start of work on the future Cereal Terminal, the creation of additional land by backfilling the bay Vridi Lagoon…

Côte d'Ivoire has a strong economy, with continuous growth and a great capacity for resilience. Its openness to the countries of the hinterland also makes it a very competitive sub-regional logistics hub. Overall, we are convinced that with its many strengths, our country can come out of this crisis even stronger.

On the second part of your question, the Authorities have undertaken to support port operators by providing them with financial assistance to cover part of the unforeseen expenses, in particular those related to the means of combating the pandemic. The implementation of these actions has already started and should continue through additional mechanisms (fiscal, social, land, etc.) which remain to be defined by the State in order to contribute effectively to the revitalization of the activities of the port community.

The health crisis is an opportunity for the actors that we are to question ourselves, to relearn how to work together, to optimize our operational processes with more digitalization, and above all, to approach the future with great humility.