California 'twinning' could open new markets

Ray Smuts THE ink was barely dry on ÔtwinningÕ trade agreements between California and the Western Cape when FTW interviewed SafmarineÕs Jan Scheck to discuss the implications for the shipping industry. "There is very little tangible information at this stage but a twinning agreement with California will undoubtedly have benefits for the Western Cape, indeed the entire country," Scheck, head of the Africa region for Safmarine, told FTW last week. As Western Cape premier Gerald Morkel and his men-at-arms returned from a visit to California, bringing with them visions of another Silicon Valley - this time under the shadow of Table Mountain - software expert Fred Ebrahimi warned this was easier said than done and that much more than passion and commitment would be required. He said the biggest problem for the Western Cape in setting up another Silicon Valley would be finding the right calibre of staff and Scheck, too, wonders whether sufficient talent is available at the present time. While California was undoubtedly a major consumer market, Safmarine had conducted relatively little business with the state thus far as the line had been pretty much focused on direct port calls at east coast United States (and with landbridge intermodal arrangements with the west coast) using its America Express Container Services to Southern Africa, Australasia and the Indian Ocean Islands. "It is only with the implementation of our Transpacific Services in March this year that we have started tapping into the west coast market. Safmarine is now able to offer an all water service from the north American west coast to southern Africa with fully managed transhipment in south east Asia. " Scheck considered it too early to have a specific overview of what the twinning agreement would amount to, but foresaw more exports from the Western Cape to California, primarily agricultural commodities and to a lesser extent a product like wine.