Argonaftis Shipping says it is just weeks away from easing SA’s logistics problems when it launches its roll-on and roll-off (ro-ro) vessels at the country’s ports in a bid to ease cargo bottlenecks that are worsened by the ailing railway system and congested road networks.
“Talks have been in progress with Transnet for seven months. All ports are on board, except for Cape Town,” said Argonaftis CEO William Greig.
“As soon as we have finalised arrangements with the Port of Cape Town, we will be able to implement the project within 90 days.”
Looking to service harbours at Durban, Cape Town, Maputo, Gqeberha and Walvis Bay, the ro-ro vessels enable trucks and trailers and other vehicles to be rolled on and off ships, removing the need for cranes and reducing use of direct road freight services, which can be time-consuming, expensive and unpredictable.
A combination of lockdowns in several countries around the world, labour shortages, robust demand for tradable goods, disruptions to logistics networks and capacity constraints have plagued the country’s ports since the lockdown.
Port and rail operator Transnet has been struggling to improve efficiency, resulting in delays affecting balance sheets of exporters and importers.
The ro-ro system is already deployed in northern and southern Europe to transport goods to ports of a single country or adjacent countries, said Greig.
He said the short-sea shipping approach could crack SA’s logistical nightmare and bring cost savings to the government and businesses while reducing the rising number of trucks congesting roads.
Short-sea shipping does not transit oceans or deep waters but rather uses coastal and inland waterways. The Greek-based maritime company says it is a viable solution to reduce road congestion and air pollution.
Shorter journeys
Savings using this method depend on volumes, type of goods and whether it is a vehicle or a trailer, the company said.
“Operational costs are reduced by the fact that trucks will have shorter journeys when 80%-90% of the journey is via ferry,” he said. “This therefore substantially reduces usage and general wear and tear on vehicles, which promotes longevity and or greater resale value at the end of the vehicle purchase contract.”
The company says ro-ro ferries are not a competitor to road freight businesses but a complementary partner.
Greig said insurers also support the short-sea shipping idea with big discounts offered on premiums offered to fleet haulage firms.
“Argonaftis Shipping can provide journeys that don’t require stops: therefore drivers and loads will be safer using our service and logistics companies desire it, as their cargo will be at less risk from all the external forces of road haulage over vast distances.”
According to European transport statistics, sort-sea shipping accounts for 1% of the energy consumption and 12.1% of the emissions related to the European transport sector.
The data shows that short-sea shipping made up 60.4% of the total sea transport of goods to and from the main EU ports in 2020, with almost 1.7-billion tonnes of goods transported through this method. Italy, the Netherlands and Spain accounted for almost 40% of EU short-sea shipping that year.
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