South Africa's reputation as a favoured arrest destination for parties seeking security in the shipping sector remains steadfast. According to Quintus van der Merwe, head of international trade and transportation at Shepstone & Wylie, the ongoing plans for port development and privatisation further bolster optimism within the industry.“Recently, a significant step was taken as Transnet named ICTSI the preferred bidder for a joint venture aimed at expanding Durban Container Te r m i n a l Pier 2's capacity. This expansion, slated to increase the terminal's capacity from two million to 2.8m twenty-foot equivalent units ( T EUs), i s expected to catalyse heightened traffic to the nation's ports. Consequently, this surge in port activity is set to unlock a plethora of new opportunities, not only for logistical entities but also for the legal sector, which will play a vital role in navigating the evolving maritime landscape,” he told Freight News.The country does, however, face some serious challenges, including the hike in fuel and diesel prices. “The effect of this is prices to transport goods increase and so do the prices of the goods. This leads to inf lation and provides difficulties for both citizens and the strained economy.”The increasing problems and risks with Transnet National Port Authority’s (TNPA) depots in South Africa, where theft of containers has become an ever-present issue, is another challenge. “Cargo owners are left with limited recourse for recovery. The issue arises where the owner who has suffered loss has no contractual claim against T N PA a nd where the carrier’s terms and conditions limit their liability up and until the point of delivery of the containers at the requisite depot,” explains Van der Merwe. “There is an argument to hold TNPA liable in terms of delict by virtue of their obligation in terms of its statutary duty contained at section 11(g) (vii) of the National Ports Act 12 of 2005 which states that the Authority, which includes Transnet Port Terminals (TPT), is responsible for the regulation and control of ‘the enhancement of safety and security within the port limits’. However, TPT’s trading conditions do provide for exemptions in terms of their liability, which we believe are precluded from being exercised in circumstances where they have failed their statutory duty. However, TNPA has not yet been found, in our courts, to have failed in the exercise of its duty. There is an ever-increasing fear of litigating against the authority where shipping lines and other relevant logistic stakeholders don’t want to burn bridges with TNPA.”In addition to the above, the abnormal load industry is facing challenges by directives for the issuing of permits and the delays associated with this, said Van der Merwe. “The legislative bodies responsible for these directives do not understand the industry and are placing unnecessary encumbrances on the industry whereby delays are costing the carriers and their clients. An Abnormal Load Association is being formed to bridge the gap between the industry and the legislative consultants to try and resolve the issues that the industry currently faces.”According to Van der Merwe, with the plans to develop the country’s ports, opportunities in the logistics sector remain. “Overall, South Africa shows promise, and despite the many challenges the sector will grow and improve.”Given the war in Ukraine, most countries have experienced some logistics challenges, particularly higher fuel prices. “South Africa is a developing country that is finding its way but has always had a good logistical sector whereby the transportation of goods has, for the most part, been a booming industry. It has shown growth since 2021 and is expected to continue to grow in 2023.”
