Encouraging more exporters to opt for South Africanflagged vessels is top priority for Vuka Marine, a joint venture between Via Maritime Holdings of South Africa and Kawasaki Kisen Kaisha (K-Line) of Japan.
The company recently re-signed its contract with Anglo American in terms of which it exports just over a million tons of iron ore and coal on two cargo vessels, the Cape Orchid and the Cape Enterprise.
“We are in discussions with most of South Africa’s large mineral exporters,” said Andrew Mthembu, chairman of Vuka Marine. “We are really trying to incentivise the market and there is a fair bit of interest.”
He said there was a growing demand for greater use of South African ships. “There is real opportunity for our maritime industry. We believe that if government were to incentivise mines to use South African vessels we would see even more demand.”
And while two vessels were operating currently – mostly out of Saldanha to China for Anglo American – growing the fleet was on the cards and they were currently looking into getting more ships.
“South Africa is still a relatively unknown flag for most financiers so we do have some real challenges, but as demand increases it will change.”
He said the renewal of the contract with Anglo American was a positive sign that would go a long way in encouraging other mineral exporters to look at local vessels for the bulk movement of their cargo.
“The ocean economy remains an untapped sector for economic growth in South Africa,” said Mthembu.
He described the partnership with Anglo American – which began in 2015 – as an initial leap of faith.
“We are proud of what we’ve been able to achieve with Anglo American – especially considering the difficult operating environment and the low rates.”
This, he said, was proof that South African vessels could add value to the global supply chain of an international exporter.
