Future of Logistics: Australian Logistics Industry to Cash in on Chinese Bauxite Demand Boom

The geographical mismatch between metal ore supply and demand countries is one of the key factors driving logistics industry growth globally. In 2016, Australia, the largest bauxite miner in the world, accounted for 31% of bauxite volume output, while the country was only the fifth largest producer of aluminium, accounting for 3% of aluminium global volume output. China, accounting for 56% of global aluminium production, mines only 26% of global bauxite supply; therefore, Australia is the core supplier of bauxite to Chinese smelters. A new bauxite mine operated by Rio Tinto will contribute even further to the growth of the Australian mining industry. As a result of recovering metals production, Australian logistics companies are cashing in on growing Australian bauxite demand in China, with bulk commodities, like metal ore, accounting for up to 70% of maritime transportation turnover in 2016. A growing mining industry will have a direct effect on logistics revenues as Australian shippers’ cash in on Chinese bauxite demand.

bulk commodities such as bauxite and alumina account for 70 percent of Australia's coastal shipping trade in 2016

This article is a part of a global briefing Key Future Trends in the Global Logistics Industry for 2025 published on Industrial.