Lack of multimodal collaboration hampers SADC trade competitiveness

The need for greater multi-modal collaboration, increased infrastructure development – for ports, road and rail – as well as the ongoing issue of ever-escalating logistics costs were in the spotlight at the two-day Africa Ports & Harbours and Africa Rail Show 2015, which kicked off in Johannesburg yesterday.

A roundtable discussion – hosted by Johny Smith, CEO of the Walvis Bay Corridor Group – highlighted the need for countries with sea-based ports to extend their services to their neighbouring landlocked countries to help them become more competitive in terms of trade, thus boosting the southern African region’s competitiveness as a whole.

Speaking to FTW Online on the sidelines of the conference, Pat Corbin, director of the International Chamber of Commerce in South Africa, commented that inland ports were “essential” to providing cost-effective logistics services to the 10 land-locked countries in the Southern African Development Community (SADC) region.

He added that an efficient railway service would go a long way towards that but lamented Transnet Freight Rail’s lack of commitment to inland ports.

Railways and intermodal transport consultant, Jack Dempsey, said that “much had been talked about at a high level around railway development in the SADC region” but that nothing much had been done. 

According to him, about 300-400 kilometres of rail had been added in South Africa over the past 50 years. “Furthermore, there is still a major lack of cooperation between railway operators in the region, which hinders the smooth and cost-effective flow of goods to the region’s landlocked neighbours,” said Dempsey.