Lack of local investment plagues ports

Despite the major global value of maritime transport, local investment in the maritime sector remains small and most ports are still plagued by major challenges such as congestion and a lack of funding for infrastructure development. This was the word from Tau Morwe, CEO of Transnet National Ports Authority, in his keynote address to international delegates from 22 countries at the 12th Intermodal Africa conference in Durban last week. “Most of our imports and exports are transported by the ocean, and lately the maritime economy of the continent has been estimated at US$1 trillion a year, which equates to about 90% of Africa’s total commerce,” Morwe said. “But if you look at our role and participation in the industry, African-owned ships account for only 1.2% of all shipping by number and less than 1% by gross tonnage,” he said. Morwe said 75% of the continent’s 59 ports faced major challenges, including poor equipment and infrastructure, coupled with issues around training, congestion, a lack of maintenance and limited capital to fund required modernisation and infrastructure development. Morwe said African Ports needed to work together to assess their productivity relative to other ports around the world. “Within the regional context we are working closely with our colleagues in the Port of Maputo to deal with some of these problems and to share learnings in terms of what they have been able to achieve and by sharing what we have been able to achieve,” Morwe said. Transport costs ave 7.6% of GDP in South Africa, he said. “It is clearly argued that logistics play an important and pivotal role in making South Africa and the continent more globally as well as regionally competitive. Transport infrastructure still remains a key determinate of performance in the transport sector,” he said. Morwe said companies had listed transport infrastructure, port efficiencies, transport costs and processes and systems as the as the top supply chain and logistics constraints on the continent. Transnet Freight Rail CEO Siyabonga Gama said investing in infrastructure on the continent would create economic growth and employment by enabling the extraction and shipping of its rich mineral wealth including oil and gas from countries such as Tanzania, Mozambique and South Africa. “The estimates are saying to me that we will be able to reposition our continent to derive the potential it has. Africa has been a sleeping giant for a very long time but we believe this is Africa’s century,” he said. INSERT & CAPTION African-owned ships account for only 1.2% of all shipping by number. – Tau Morwe CAPTION TNPA and the Port of Maputo are collaborating to share expertise.