SA's gateway status - is change imminent?

26 Nov 2013 - by Liesl Venter

Warren Erfmann, CEO of DSV
Africa:
If SA doesn’t start working on its
efficiencies at the ports, especially
Durban, and if customs authorities
continue to unilaterally make
changes to customs procedures
without understanding the
consequences and including the
role-players in the dialogue, South
Africa will without doubt continue
to lose business and along with that
its current status as the gateway to
Africa.
Hendriette Theron, global
business development officer
Europe/Africa BBC Chartering:
South Africa is still the gateway
to southern African regions but
it’s facing stiff competition from
ports in Namibia and will, in the
future, also get strong headwinds
from ports in Mozambique
and Tanzania. These countries
are investing in their port and
hinterland infrastructure, placing
these ports in a favourable position
to transport cargoes – that are
at the moment routed through
South Africa – to the land-locked
countries.
Modise Koofhethile, managing
director Gabcon:
Right now it is still the gateway
into southern Africa at the very
least, but that is going to change in
the next few years.
South Africa faces
some serious issues
around efficiency
and it has the most
expensive ports in
the world. Labour is
a massive concern
in the South
African context and
strikes continue to
impact. Change is
imminent.
Rudi Nagel, business
development manager of Transport
Holdings:
South Africa has not lost its
status yet, but that is probably due
to the fact that many other ports
have just not got off the ground to
the extent that they need to. They
just don’t have the turnaround
times, efficiencies
and capabilities
yet, but as regional
ports develop
the situation will
change. I don’t
think South Africa
will have the same
status in a few
years’ time that
it has now.
Jan Louw
Malherbe, operations manager
West Africa, Africross Logistical
Solutions:
The ports of Namibia and
Tanzania have become bigger
players in the southern Africa
market. Also there has been an
increase in cargo moving to Zambia
and Malawi from these ports. There
is less reliance on South Africa
which is already changing its status.
Heinz Lange, operations
manager: Africa, Chapman
Freeborn:
South Africa does need to
look at lowering its high supply
chain costs; there are many taxes,
permit fees and new charges
levied by authorities on freight
logistics companies, driving up the
overheads, so considering moving
their operations cross-border is
looking more attractive.
Further damaging South
Africa’s gateway image are all
the protracted labour disputes.
It is predicted that Nigeria will
overtake South Africa as the biggest
economy in sub-Saharan Africa by
2016. Kenya is another hot spot that
is being looked at closely in terms of
being an Africa gateway.
Will South Africa lose its status?
Yes.
Sandra De Kock, director of
Destrans:
Importers and exporters are
continuously looking for other
options and it can only be expected.
The congestion at the Port of
Durban along with the cost are
concerns – and with the ports only
able to expand to a limited extent,
catering for the volumes of cargo
will mean looking at other options.
Jeremiah Naidoo, Transnetwork
Logistics:
Yes and no. When it comes to
safety and efficiency then customers
look to South Africa, but in terms
of rates and in view of the exchange
rate we are losing out as clients
show preference for Namibia and
Mozambique.
Paul Runge, managing director
Africa Project Access:
South Africa is going to have to
up its game if it wants to remain
competitive in the global sense. Is
it the gateway into Africa? At the
moment yes. The more important
question is for how long still?