Despite its port-side improvements – $34 million ship-to-shore gantry cranes delivered in February a year ago and a new $400 million container terminal coming online in May – cost continues to hold back growth at the port of Walvis Bay. A recent study by Hamburg Bulk Carriers (HBC) revealed that excessive cost challenges
were holding back Namibia’s biggest port from effectively competing with the Port of Durban, despite Walvis Bay’s impressive bragging rights. For example, not only is it closer to Ndola than Durban, but the trip is generally much faster – six days compared to 11, primarily because of border delays on the line south to KwaZulu-Natal. “But HBC has found that on average the ocean freight rates per TEU going to Shanghai
from Walvis are around $2000 compared to Durban’s general rate of $350,” said the Walvis Bay Corridor Group acting CEO, Clive Smith. This had forced the group, Smith said, to continually engage with shipping lines to negotiate better rates. “If we successfully address costs issues we should begin to see an increase in volumes on the Ndola line because at the moment, given our capacity efficiencies on this line, we should be seeing a lot more freight come through.”
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If we successfully address costs issues we should begin to see an increase in volumes. – Clive Smith
