JAMES HALL
MBABANE – Sky-high shipping costs were cited by Swazi manufacturers as a reason the garment and other export industries are faring poorly.
“The cost of shipping by sea from Hong Kong to Durban for a container shipment averages between R2500 and R3000. From Durban to Mbabane, inland transport averages between R7000 and R10 000,” Amanda Hilligas, a consultant specialising in AGOA issues, told Swazi business leaders recently.
“In addition to the expense, transportation of goods is unreliable, and shipments arriving by road are often delayed, creating additional costs and production concerns for apparel firms,” Hilligas said.
Some road transport delays are encountered at customs checks at border posts.
Inflated costs of doing business have always been a problem in a country noted for consumer price gauging, but transport costs are now eroding the competitiveness of Swazi exports, manufacturers say.
Road transport firms contacted by FTW defended their pricing and reliability, and blamed inexperienced small operators for the negative assessment of the industry. They said transport costs were partly determined by volume, and it was cheaper to send a large shipment of hundreds of containers by sea from Hong Kong to Durban than a minuscule shipment of a few containers over the border to Swaziland.
Exorbitant transport costs price Swaziland out of the market
18 Mar 2005 - by Staff reporter
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