There is growing demand for specialised warehousing within a free trade zone environment.Free Trade Warehousing Zones (FTWZs) are special free trade zones (FTZs), providing value-added services such as packing management, sorting, inspection, reinvoicing, strapping and kitting, and assembly of complete and semi-knocked-down kits.The global market for FTWZ logistics is estimated to be worth around $4.4 billion, with a Research and Markets study predicting it will reach $56bn by 2030.The increasing globalisation of trade has heightened the demand for efficient logistics solutions that can manage the complexities of cross-border commerce, according to the st udy.Underpinning the demand for FTWZ facilities is the 4% annual growth of 3PL and 4PL services.At present, there are no FTWZs in Africa, which leaves a gap in the market for South African SEZs and other continental free trade zones. While there is strong competition between the 3 500 FTZs in 130 countries around the world, there are only a handful of FTWZs.India is actively promoting FTWZs following the success of such zones in Jebel Ali, Singapore and Rotterdam. India has multiple FTWZ zones located across the country. According to TVS Supply Chain Solutions, one of the key advantages of FTWZs is the improvement they offer to the overall supply chain efficiency. By centralising storage, distribution, and inventory management operations in FTWZs, companies can streamline their supply chains and reduce wastage and inefficiencies. The Indian FTWZs are strategically placed close to main ports and transportation hubs, which reduces logistics costs and time, according to India-based OSV FTWZs. The South African SEZ legislation does not make allowance for the establishment of FTWZs, but includes value-adding services such as repackaging or processing in the definitions of a “free port” and “free trade zone”.
