Gauteng shippers spoiled for choice when it comes to ports

Gauteng-based importers and exporters are now spoiled for choice when it comes to ports – a vital factor when attempting to drive down logistics costs. Maputo, Walvis Bay, Port Elizabeth and Ngqura all want a bigger slice of Gauteng’s business. While Port Elizabeth and Ngqura are not officially permitted to compete against a sister port in the same Transnet stable, Maputo and Walvis Bay are canvassing for Durban’s cargo more openly. A second wave of global downturn could provide the spark needed for shippers and their logistics providers to move out of their comfort zones and try new routes in order to reduce the logistics costs that are one of the factors affecting Gauteng’s competitiveness as a hub for African trade. This happened in Zambia during the 2008 copper price crash, when traders and cargo owners started rerouting from Durban to Dar es Salaam and Beira in order to save costs. They found that the two ports were competitive, and volumes continue to grow. In an effort to kindle a similar trend in Gauteng, the Walvis Bay Corridor Group (WBCG) has opened an office in Johannesburg to canvas for business. At the same time, the WBCG and its partners are working hard at reducing transit times along the Trans Kalahari corridor, where the main challenges have been the delays at border posts and stray animals on the Botswana leg. Walvis Bay is promoting itself as the most efficient port for imports and exports from Europe and the Americas, although it is also served by vessels from the East. This service primarily serves the African hinterland – Zambia, Southern Angola, Zimbabwe, the DRC and Namibia. However, there is spare capacity, particularly for exports to the east, and Walvis Bay is worth investigating for less time-sensitive Far Eastern imports and exports. Maputo is better positioned for this trade, with continuous upgrading of the port facilities increasing capacity. Here again one of the biggest challenges is customs, with the Maputo Corridor Logistics Initiative (MCLI) lobbying hard for a 24-hour, joint one stop border post. A little off the radar due to Transnet’s own internal politics and agendas are Port Elizabeth and Ngqura, both of which are efficient ports. With Transnet’s rail pricing favouring Durban, there is an opportunity for balanced road-based services to make the ports cost-competitive for Gauteng shippers. Ngqura, which is a transit hub for ports up both the east and west coasts of Africa, should be considered by Gauteng companies exporting to the continent.