SA's gateway status - is change imminent?

Warren Erfmann, CEO of DSV Africa: If SA doesn’t start working on its efficiencies at the ports, especially Durban, and if customs authorities continue to unilaterally make changes to customs procedures without understanding the consequences and including the role-players in the dialogue, South Africa will without doubt continue to lose business and along with that its current status as the gateway to Africa. Hendriette Theron, global business development officer Europe/Africa BBC Chartering: South Africa is still the gateway to southern African regions but it’s facing stiff competition from ports in Namibia and will, in the future, also get strong headwinds from ports in Mozambique and Tanzania. These countries are investing in their port and hinterland infrastructure, placing these ports in a favourable position to transport cargoes – that are at the moment routed through South Africa – to the land-locked countries. Modise Koofhethile, managing director Gabcon: Right now it is still the gateway into southern Africa at the very least, but that is going to change in the next few years. South Africa faces some serious issues around efficiency and it has the most expensive ports in the world. Labour is a massive concern in the South African context and strikes continue to impact. Change is imminent. Rudi Nagel, business development manager of Transport Holdings: South Africa has not lost its status yet, but that is probably due to the fact that many other ports have just not got off the ground to the extent that they need to. They just don’t have the turnaround times, efficiencies and capabilities yet, but as regional ports develop the situation will change. I don’t think South Africa will have the same status in a few years’ time that it has now. Jan Louw Malherbe, operations manager West Africa, Africross Logistical Solutions: The ports of Namibia and Tanzania have become bigger players in the southern Africa market. Also there has been an increase in cargo moving to Zambia and Malawi from these ports. There is less reliance on South Africa which is already changing its status. Heinz Lange, operations manager: Africa, Chapman Freeborn: South Africa does need to look at lowering its high supply chain costs; there are many taxes, permit fees and new charges levied by authorities on freight logistics companies, driving up the overheads, so considering moving their operations cross-border is looking more attractive. Further damaging South Africa’s gateway image are all the protracted labour disputes. It is predicted that Nigeria will overtake South Africa as the biggest economy in sub-Saharan Africa by 2016. Kenya is another hot spot that is being looked at closely in terms of being an Africa gateway. Will South Africa lose its status? Yes. Sandra De Kock, director of Destrans: Importers and exporters are continuously looking for other options and it can only be expected. The congestion at the Port of Durban along with the cost are concerns – and with the ports only able to expand to a limited extent, catering for the volumes of cargo will mean looking at other options. Jeremiah Naidoo, Transnetwork Logistics: Yes and no. When it comes to safety and efficiency then customers look to South Africa, but in terms of rates and in view of the exchange rate we are losing out as clients show preference for Namibia and Mozambique. Paul Runge, managing director Africa Project Access: South Africa is going to have to up its game if it wants to remain competitive in the global sense. Is it the gateway into Africa? At the moment yes. The more important question is for how long still? INSERT Importers and exporters are continuously looking for other options and it can only be expected. – Sandra De Kock CAPTION The Port of Durban ... pricing itself out of the market?