South Africa is importing more electric vehicles, and manufacturers are containerising more vehicles.These are two of the trends identified by Denzil Reddy of SA Cargo in KwaZulu-Natal.“Currently, there is a noticeable rise in the arrival of electric vehicles (EVs) at the Port of Durban. Additionally, we have recently welcomed our inaugural hydrogen vehicle via roll-on/roll-off (ro-ro) transport,” he told Freight News. “We’ve also observed that original equipment manufacturers (OEMs) are increasingly opting for containerisation in their export and import operations. “This shift is due to reduced vessel availability in rotation, which necessitates meeting deadlines and addressing space capacity concerns.“More capacity has been added by an increase in the number of ro-ro shipping line entrants over the last couple of years post Covid, which have taken the opportunity to inject the much-needed vessel capacity in the market,” he added.There has also been a “notable uptick” in volumes of vehicles being transhipped through Durban.According to Hans Modipane, executive: logistics, sales and marketing, the increased volumes pose challenges regarding space constraints within the port terminal and rail infrastructure, which SA Cargo is navigating.Chinese vehicles are making inroads into the market, with a noticeable increase in the number of Chinese vehicles destined for the local market, primarily consisting of mid-size vehicles. One of the major contributing factors is that Chinese vehicles offer competitive pricing compared to traditional prominent brands from other countries, adds Modipane.He believes that South African vehicle logistics systems are world-class. “The South African vehicle market has experienced significant growth in recent years, with the entry of multiple OEMs into our markets. “This trend shows that our logistics is almost equivalent to the international market.” Modipane says there is potential for the volumes of vehicles processed through Durban to grow.“The relocation of vehicle handling operations, such as containerisation and vehicle storage closer to the terminal, aims to address the surge in vehicle traffic through the Port of Durban, thereby alleviating space constraints.”Future growth will depend on local affordability.“The automotive market is among the fastest-growing sectors, yet ongoing economic challenges pose concerns for household income. “The sluggish new vehicle market indicates that middle-income households are cautious about significant financial commitments. “Elevated interest rates, rising fuel costs, and the absence of tax relief for personal income taxpayers in the 2024/2025 tax year are anticipated to impact household incomes,” he says.
