South African ports face losses as other countries expand

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A myriad of challenges at various ports of entry to South Africa, such as long queues, continue to negatively affect the exportation of goods from South Africa and other African countries.  

Economists say these challenges negatively affect the country’s economy as they contribute to mass job losses in industries such as mining.  

The Department of Public Enterprises is urging the private sector to help in building some ports of entry in order to save the country’s economy.  

Long dreadful queues at many of South Africa’s ports of entry are causing frustrations to companies from and outside of South Africa. 

 South Africa is now being left behind as other countries progress in addressing such challenges. 

Public Enterprises Deputy Minister Obed Bapela elaborates.  

“Other countries in the region are building the biggest port and some trucks are saying South Africa your queue for our goods to go on the ship is too long, we will go to Walvis Bay in Namibia and Beira in Mozambique. They are building the biggest port and Zimbabwe is a contributor to it. So, the trucks you see going through our toll roads from Zimbabwe will now go directly from Zimbabwe to Beira. South Africa will be the loser. So, we don’t have time.” 

  Chief economist at the Minerals Council South Africa, Henk Langenhoven, says these challenges are costing the mining sector millions of rands.

 “Some of the companies have diverted a lot of their cargo to Maputo where the port is functioning very well. The issue also is constraints.  The railway line can’t be expanded immediately and the volume of trucks going through the border post is much higher than what the border post was designed for. It’s in the order of about 18% of every R100 million that the fiscals are losing to income and the longer this continues, there will definitely be problems with the companies’ ability to sustain employment.” 

 Another Economist, Bongani Mahkangu, outlines how the economy gets affected on a broader spectrum.

“The economy wider gets impacted on the basis that it is unable to generate the potential tax revenue which then affects the fiscals as we have seen with Treasury now with that note that they had circulated of cost containment. So, those are one of the things that contribute to Treasury implementing cost containment because they can no longer generate the required revenue from the economy.” 

  The Public Enterprises Department is calling on the private sector to help address some of these challenges.

Bapela elaborates, “If goods do not move, the economy struggles and already mining companies are now scaling down production. It means they must lay off sectional work of the workers. The ports are concentrated. Trucks are parked there waiting on long queues for them to deliver the goods in the yard so that they can go on the ship. And also, that area of the ports which is one of the companies under the Public Enterprises. We are also looking at that to bring in private sector to come and help us in building some portions of the ports.” 

Economists say more options other than building bigger ports of entry should also be explored speedily.