Walvis Bay to become 'Dubai' of West Africa?

The Port of Walvis Bay has set itself the goal of becoming the Dubai or Singapore of West Africa “in our lifetimes”.

Namport chief executive officer Bisey Uirab said the commitment by government to transform Namibia into a logistics hub was clear.

“Dubai happened over the past 30 years,” he added. Uirab was responding to a challenge made by Safmarine chief executive officer Dirk Hoffmann at a Transport Forum in Walvis Bay last week. Hoffmann said that in 1964 Dubai had been little more than an isolated fishing village which did not even have electricity. What sparked growth and development was a focus on logistics.

“The logistics chain provides opportunities – not the other way round. When you build capacity you create opportunities you often don’t expect, and if you only build to meet current demand then that is what you will get,” he said.

Ports like Walvis Bay can develop at a faster pace than the rest of the country. “Dubai shows us that city states can be more relevant than nation states,” said Hoffmann.

FTW Africa correspondent Ed Richardson told the forum that Namibia had many of the elements in place needed to achieve its vision of being the preferred SADC gateway – although it faced stiff competition from other ports in the region.

“Unlike the other corridors in the region you have a wellfunded and very active body championing the vision. What is also important is that the Walvis Bay Corridor Group (WBCG) has the support of both government and the private sector.

“Government is also putting the necessary policies and regulations in place to ensure the free flow of goods, as well as the establishment of free trade zones.

“Plus you are investing in the necessary infrastructure – the new container terminal is a ‘killer app’ which makes a bold statement that you are willing to back your vision with bricks and mortar investment.”

WBCG chief executive officer Johny Smith said the development of the corridors and Walvis Bay should be seen in the context of the logistics challenge facing Africa as a whole.

There are nine main trade corridors traversing the continent, with Namibia strategically positioned on the main West African route. One of the major strengths of the Walvis Bay corridors is the road infrastructure – around a third of the corridor roads in the rest of Africa are untarred.

This was part of the progress that had been made in establishing Namibia as the western trade gateway, he said. At independence there were no direct connections between Namibia and its neighbours – apart from South Africa; there were no direct shipping services to Walvis Bay, and there was no transit traffic.

Today Walvis Bay is a deep-water port that is connected by direct calls to Europe, North America and the East. It also has direct road links with all its neighbours, but “rail remains a challenge”. Namibia’s logistics and transport masterplans were addressing the issue of rail, as well as other impediments making the country the SADC logistics hub. There are also plans to develop special logistics zones for value-added logistics and manufacturing.

One of the reasons for Dubai’s success is the creation of the Jebel Ali Freezone (Jafza). “The zone is home to more than 7000 companies and sustains 144 000 jobs “Jafza generates trade worth US$87.6 billion a year and 12% of air freight at Dubai International Airport. It contributes 20.6% to Dubai’s GDP,” he said.

The same model can be used to create much-needed sustainable jobs in Namibia, he added.

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The logistics chain provides opportunities — not the other way round.

– Dirk Hoffmann