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Industry voices support for national sea carrier

05 Nov 2004 - by Staff reporter
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ALAN PEAT
THERE IS high level backing in the business world for a South African national sea carrier on the global trades.
Since Safmarine - which proved itself an international presence in the seafreight world - was purchased by the Danish AP Moller group, the country has had no deep-sea shipping line in SA colours.
Both from a patriotic and economic stand-point, an SA flag carrier could be a good idea, according to Nolene Lossau, executive director of the SA Shippers Council (SASC).
“But,” she added, “it would have to operate in a free market, so there’s room for individual choice by shipping users.
“However, all things being equal, and with no unfair support, it would meet with user approval.”
Indeed, Lossau questions why only one national line needs to be considered.
Given fair but attractive incentives for lines to flag their vessels with SA colours, she sees room for a number of operators to enter a transport field which is an essential part of SA’s on-going health in the trade world.
There is a distinct role for a national sea carrier, Sacob CEO James Lennox told FTW - and that’s developmental.
“Given a liberal and competitive environment,” he said, “the most significant value of a flag carrier would be opening up new trade routes. Routes which a purely commercial operator might balk at entering before they have had a chance to prove their worth.”
Intra-African trades - where the problem is often a lack of transport links for both passengers and cargo - could be one area where such a developmental exercise could be conducted.
“We see that a national carrier could open up these routes,” said Lennox, “and that would attract other links to be established.
“But it would, therefore, have to be developmental demand, and the liberal competitive environment would have to kick in at some stage.”
Lennox also sees a protective element in a national carrier - where it would have an obligation to serve SA ports even if a serious downward trade cycle saw other commercial carriers deciding to pull out.

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FTW - 5 Nov 04

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