Hual poised for action as SA car manufacturing industry sees volumes rise

AGAINST THE background of growth in South Africa's car-manufacturing industry, specialist car carrier Hual is poised for action.
Tony Kee, director of agents John T Rennie & Sons, told FTW in Durban last week that the line was committed to the South African car manufacturing industry. Hual currently offers a fortnightly southbound service between Europe and South Africa and has been operating in the SA market for four years.
South Africa signed the General Agreement on Tariffs and Trade (GATT) some years ago when local duties on imported cars were over 100%. The signing of GATT committed the country to reduce its import duty on fully built up motor vehicles to 40% by the year 2002. Duties are currently in the region of 54%.
The rise in fully built up imports, however, is a drain on the fiscus, and the motor industry instituted a programme, MIDP, (Motor Industries' Development Programme) to counter this in terms of having to export in order to be able to import and in this way create a proper balance, says Kee.
This, he believes, is now starting to take effect with motor manufacturers gearing themselves up for world trade and ensuring that their quality is up to world standards.
Considerable money, expertise and time has been invested by the motor industry and it now appears to be starting to bear fruit with South Africa taking its place as a world
player in terms of car manufacturing.
Volkswagen has just announced a massive export project involving 500 cars a month or 250 cars a day. This is a hefty contract when one considers that the entire industry produces sales of around 300 000 vehicles per year.
It is well known that BMW is gearing up for exports as well and, in fact, one of Hual's vessels recently turned in Durban and went back to Europe carrying over 700 BMWs.
The rise in exports over the last two years has been dramatic and will continue to grow. Naturally car carriers such as Hual will be looking at all opportunities.