Regional port progress challenges Gauteng's hub dominance

Research by FTW has
identified a number of
challenges to Gauteng’s
status as a logistics hub for
neighbouring countries.
Over the years billions of rand
have been invested in people, fleets,
warehouses and systems in order to
link the port of Durban with the rest
of the sub-continent.
But now investment in the ports of
Walvis Bay, Dar es Salaam, Nacala
and Maputo all pose a threat to
Gauteng-based logistics companies
that make their living carrying
freight into and out of neighbouring
countries.
To put it simply, Durban is no
longer the only game in town.
Shippers in neighbouring countries
now have a choice.
And, following the precipitous
drop in commodity prices, they have
been forced out of their comfort
zones and have started evaluating
and testing alternative corridors.
And, where their forwarding or
haulier agent only works through
Durban or Beira, they take their
business somewhere else.
To many it comes as a pleasant
surprise.
Beira and Walvis Bay, in particular,
bear no resemblance to what they
were even five years ago.
It is a serious problem for the
marketing departments of the two
ports – one which works in favour of
the Gauteng/Durban duo.
Agents in Zambia and Zimbabwe
will almost all recount stories of
delays, short shipping, customs
snafus, etc.
Only problem is that most of these
incidents happened years back, and
when economics nudge them or their
clients into trying the port again they
find it is now working.
The key is costs. There is very little
loyalty to logistics service providers,
shipping companies or any particular
route.
So, you find trucking companies
that specialised in running between
Zimbabwe or Zambia and Beira
now looking at alternatives, such as
Walvis Bay or even Durban.
When the rand crashed earlier
this year copper bound for Beira
was simply rerouted to Durban via
Gauteng because it cost the trader
– whose business deals in dollars –
less to pay port fees in rand than in
dollars.
With the Namibian dollar linked
to the rand Walvis Bay enjoyed a
similar windfall.
But, it does not have the Gauteng
advantage of hauliers being able to
cut rates to the bone in order to avoid
an empty leg on the way back.
A weak rand is, perversely,
affecting export volumes into
neighbouring countries from or
through Gauteng.
A fair percentage of exports from
South Africa is sourced either wholly
or in part from dollar-based suppliers
abroad.
What FTW found is that Zambian
importers, faced with a weakened
kwacha, are now sourcing products
direct from alternative sources – and
using Dar es Salaam rather than
Durban.
A team effort is needed to ensure
that Gauteng remains competitive
as a logistics hub. The team includes
everyone on the logistics page – from
the port to agents and transporters.