Green shoots – as Namibia pursues SADC hub strategy

Rivers around

Swakopmund were

f lowing for the first

time in eight years

following a long drought when

FTW visited the town in March.

At the same time there are

early signs that the trickle of

freight along the Walvis Bay

corridors and through the port

of Walvis Bay is starting to f low

stronger.

Over the medium to long

term volumes will certainly

grow, along with value-added

logistics and manufacturing

because Namibia is a country

with a plan – to be the preferred

logistics hub for neighbouring

Southern African Development

Community (SADC) countries.

The target market includes

South Africa and Angola – both

of which have their own port

systems.

There is a good business case

to be made for the country’s

vision, and for the investment

that the private sector is making

in strengthening the Namibian

logistics infrastructure.

It is estimated that traffic

to and from landlocked SADC

countries will have increased

to 50 million tons by 2030,

escalating to 148 million tons

by 2040 – an annual growth of

8.2%.

What makes Namibia

stand out in the region is

that the government and the

private sector are working

in partnership to implement

national policy.

Over the past year a whole

new logistics park has been

developed in Walvis Bay – in

line with the Master Plan

for the Development of an

International Logistics Hub for

SADC Countries in the Republic

of Namibia.

For its part the government

is investing billions in the ports

of Walvis Bay and Lüderitz Bay,

together with the connecting

road, rail and air links.

Studies commissioned by

the Namibian government

and international aid agencies

identified the focus on logistics

as one of the best ways for

Namibia to grow its economy

and create sustainable jobs.

This supports the two main

goals for economic growth – to

go beyond the limits of the small

domestic economy by tapping

into economic growth in the

whole southern African region;

and to diversify economic

activities away from mining.

If successful, the plan will

affect the f low of freight in the

region.

According to the logistics

hub master plan, around 60%

of cargo handled at Walvis Bay

Port is for transhipment.

The remaining 40% is broken

down into around 20% each for

domestic and transit cargo.

“The Logistics Hub Centre

(in Walvis Bay) will change the

situation. Transit cargo volume

is expected to increase from

0.8 million tons in 2013 to 3.6

million tons in 2025,” states the

logistics hub master plan.

Most of the public and private

sector building blocks needed

to support this growth are

either in place or in the process

of being put in place. The next

upturn in the commodity cycle

will put them to the test.

Volumes will follow if the

corridors deliver on their

promise of being the fastest

and most cost-effective links

between SADC and the rest of

the world.

New suburbs are being built in Walvis Bay as plans to establish the port city as an SADC logistics hub attract workers and their families.

Image removed.