The high cost of logistics
in South Africa is one of
the biggest challenges
facing logistics operators
in Botswana.
According to Gareth Lendrum,
general manager of Bollore
Africa Logistics, the South
African ports are some of the
most expensive in the world
and the movement of cargo
exponentially increases as it
moves through the country.
“In Botswana we are seeing a
big drive to diversify away from
the South African port and cost
is definitely one of the factors,”
he told FTW.
The Namibians in particular are
giving the South Africans a run for
their money.
“The Namibian ports are doing
very well and they are very reasonably
priced. They are also very efficient,”
said Lendrum. “With Botswana now
being offered a dry port in Walvis
Bay we are expecting to see more
cargo routed through Walvis Bay
instead of South Africa. If you book
on the right vessel at the right time
then vessels go to Walvis Bay before
docking in South Africa and that
means we move our cargo faster. “
He said in terms of an inland
service they were finding major
benefits from using the Port of
Walvis Bay. “From the Port of
Durban it takes about seven days
to get a container to Botswana by
road whereas from Walvis Bay one
is looking at only around 48 hours at
the most.”
Lendrum said the high fuel price
in South Africa was also challenging
and driving up cost.
“Fuel in Botswana is cheaper which
allows local transporters to reduce
costs; however the South African leg
of the transport is generally covered
by South African transporters
and this does increase our costs.
According to Lendrum the high costs
mean margins are squeezed tighter
and tighter.
“Landlocked countries like
Botswana are extremely dependent
on South Africa and the cost
of logistics therefore impacts
significantly on us.”
INSERT & CAPTION
With Botswana now being
offered a dry port in Walvis
Bay we are expecting to
see more cargo routed
through Walvis Bay instead
of South Africa.
– Gareth Lendrum
