Ports battle imbalance as Asian imports rise

South Africa continues to see an influx of affordable Chinese imports into the country, a trend that has reshaped the domestic vehicle market, placing pressure on traditional automotive brands as well as the local manufacturing base. According to Hans Modipane, SA Cargo executive for commercial and logistics, the continued rise in imports, particularly from Asia, has materially widened the imbalance between import and export throughput through the South African port system. “This is placing sustained pressure on port capacity, most notably at the Port of Durban, which remains the busiest of the three vehicle hubs for both import and export volumes, while also serving as an automotive transhipment hub.” He said local manufacturers had also been under increasing pressure from the influx of these cheaper and more appealing brands. “This has in turn impacted volumes in the short to medium term, but with the latest developments of Chinese OEMs now showing interest in some localisation, we hope that the slowdown in volumes, especially for exports, may in the long term be mitigated.” According to Modipane, the company has seen a fairly mixed bag of contracts to date, with some volumes having dropped while others have increased. “There are volumes that have been under threat due to the continuing influx of the seemingly more appealing and affordable Chinese imports. On the export side, we have, however, seen a growing trend of vehicle containerisation, especially for markets or destinations that do not have traditional ro-ro services,” he told Freight News. Modipane said it was encouraging to see that some of the Chinese vehicle brands were already making firm commitments or were in active exploratory discussions with locally established manufacturers to either partner, co-invest or potentially take over underutilised production facilities in South Africa. “This will not only keep production localised but will also ensure that jobs are protected and that the entire ecosystem of supply and logistics is retained. This will also ensure that the current import-heavy trend could evolve into something far more sustainable for the local economy,” he said. SA Cargo has been growing its footprint in the vehicle sector in recent years. The company has invested extensively in its operations and has focused on providing a real-time view and updates of both its ro-ro and yard operations, with the introduction of automated vehicle tallying and surveying. “We have introduced additional logistics services, offering seamless handling of project cargo and yellow equipment. This includes clearing of cargo, quayside cargo surveying and inspections, cranage services and transportation from the port to bonded or free- store back-of-port facilities,” said Modipane. LV