State-run Thai line could alleviate capacity shortage on SA route

AS CAPACITY constraints continue to drive up freight rates on the SA – Thailand route, the idea of a staterun Thai shipping line has been mooted as a possible solution. South Africa is Thailand’s biggest trading partner in Africa accounting for one third of Thai trade with the continent. “South Africa is far from Thailand and unfortunately, there is no national ocean line,” Adisai Dhummakupt, commercial minister for the Royal Thai Embassy based in Pretoria, told FTW. “A state-run carrier would need to be a direct, dedicated line as trade between the two nations is currently reliant on other lines that tranship via Singapore.” Trade between the two nations topped US$1.4bn (R9.8bn) in 2006, with year-to-date growth up 28% over the same period last year. Automotive components and accessories have overtaken rice as the main export to SA, says marketing officer, Martin Wolter-Grossman. He believes synergies exist between SA and Thailand that facilitate a beneficial trade relationship. “But still the main problem is the number of vessels moving between the two countries.”