THE STRONGER rand could cripple South Africa’s tank container manufacturing industry and see a major swing to China as the local product becomes less competitive. That’s a major concern expressed by several industry pundits. “South Africa is the leading producer of isocontainers, with manufacturing companies producing over 50% of the world’s new isotanks,” says Tony Kee, marketing director of Rennies Ships Agency. “Over many years the South African isotainer shipping community has had the advantage of new isotainers at ultra low rates, but if China becomes more competitive in the tank manufacturing business it is possible that we will see a huge reduction in the volumes of new food grade tanks in South Africa.” But things will not change that quickly, says Kee. “One of the largest tank container operators Ð Hoyer Odfjell Ð has placed an order for 2000 tank containers with Welfit Oddy of Port Elizabeth. These isotanks are being manufactured at a rate of around 80 a month and Hoyer Odfjell, with agents Rennies Ships Agency, are actively looking for cargo to fill them, says Kee. “This scenario will continue for the next two years, providing shippers with a supply of isotanks at least for this period.”
