Bots operators opt for 'cheaper faster Walvis option'

The high cost of logistics in South Africa is one of the biggest challenges facing logistics operators in Botswana. According to Gareth Lendrum, general manager of Bollore Africa Logistics, the South African ports are some of the most expensive in the world and the movement of cargo exponentially increases as it moves through the country. “In Botswana we are seeing a big drive to diversify away from the South African port and cost is definitely one of the factors,” he told FTW. The Namibians in particular are giving the South Africans a run for their money. “The Namibian ports are doing very well and they are very reasonably priced. They are also very efficient,” said Lendrum. “With Botswana now being offered a dry port in Walvis Bay we are expecting to see more cargo routed through Walvis Bay instead of South Africa. If you book on the right vessel at the right time then vessels go to Walvis Bay before docking in South Africa and that means we move our cargo faster. “ He said in terms of an inland service they were finding major benefits from using the Port of Walvis Bay. “From the Port of Durban it takes about seven days to get a container to Botswana by road whereas from Walvis Bay one is looking at only around 48 hours at the most.” Lendrum said the high fuel price in South Africa was also challenging and driving up cost. “Fuel in Botswana is cheaper which allows local transporters to reduce costs; however the South African leg of the transport is generally covered by South African transporters and this does increase our costs. According to Lendrum the high costs mean margins are squeezed tighter and tighter. “Landlocked countries like Botswana are extremely dependent on South Africa and the cost of logistics therefore impacts significantly on us.” INSERT & CAPTION With Botswana now being offered a dry port in Walvis Bay we are expecting to see more cargo routed through Walvis Bay instead of South Africa. – Gareth Lendrum