Transport minister Barbara Creecy is forging ahead with plans to create a national shipping carrier — 25 years after the state sold Safmarine to logistics major Maersk.
The department on Friday invited shipping companies to take part in a steering committee to establish a model for a national shipping company, with the Development Bank of Southern Africa (DBSA) set to play a prominent role in the process.
The intention is to have a “significant targeted percentage” of exports and imports moved by the national shipping carrier.
“The department is collaborating with the DBSA for the establishment of this SA National Shipping Company model that will enable SA to carry its own import and export trade, which has suffered negative growth since the 1980s as SA does not have a national shipping carrier,” the department said in a government notice.
“The steering committee will be formed, comprising members from the department, DBSA and other relevant stakeholders, to guide the development of this national shipping company framework. The committee will create terms of reference to facilitate the development of the shipping model.”
Plans for the state to re-enter the maritime industry first emerged in 2022, when the government released the first draft of legislation for the formation of the SA Shipping Company (Sasco).
The legislation flowed from the 2017 comprehensive maritime transport policy, which outlined a blueprint to overhaul SA’s maritime industry. It called for steps to be taken to establish a national shipping carrier as a strategic pillar in the revival of the maritime transport industry.
SA is the only founding country of Brics (Brazil, Russia, India and China) that does not own its ships.
Unlike its Brics partners, SA has had a horrible track record in managing state-owned companies, with these companies having gobbled up more than R600bn from taxpayers in the past decade.
Taxpayers have footed nearly R700bn (excluding government guarantees) in bailing out ailing SOEs since 2013 — including national air carrier SAA, which at one stage found itself in business rescue.
The plan to establish a national shipping carrier comes as SA is going through the most fundamental reset of its logistics sector in a generation with the private sector set to play a more prominent role.
Should the plan to establish a national shipping group materialise, the government might seek to acquire existing shipping companies, with the funds for the acquisitions coming from the government and the likes of the Industrial Development Corporation (IDC).
Safmarine — established in 1946 — was acquired by Maersk in 1999 and fully integrated into the Danish multinational company by 2020.
Major players in the industry includes Maersk, MSC Mediterranean Shipping, CMA CGM, Robertson and Caine, and Sandock Austral Shipyards.
The country’s maritime sector faces port inefficiencies, infrastructure challenges and high operational costs, which all affect its competitiveness.
To alleviate these shortcomings, the department of transport, alongside Transnet, has embarked on a wide-ranging reform agenda to liberalise the logistics industry.
Transnet in May ramped up private sector participation at the Port of Durban, seeking a private partner to construct and operate the multipurpose terminal at the port.
The state-owned company issued a request for proposals for the appointment of a private sector partner to fund the terminal, set to handle fresh produce and compatible break bulk cargo for 25 years, excluding the development period.
Transnet’s strategy has been to pursue private sector partners where the required investments are either unaffordable for it alone or are complementary to its strategy.
Transnet National Ports Authority (TPNA) manages the country’s eight commercial seaports.
In February it put pen to paper to develop SA’s first liquefied natural gas import terminal as public-private partnership projects take shape.
The biggest private sector participation across SA’s port network has been delayed by a legal challenge launched by the losing bidder.
The R11bn deal put on the table by Philippines-based International Container Terminal Services Incorporated (ICTSI) to operate Durban container terminal pier 2 (DCT2) is on hold after a challenge by APM Terminals, the port operating company of Danish logistics major AP Moller-Maersk.
DCT2 is Transnet’s biggest container terminal, handling 72% of the Port of Durban’s throughput and 46% of SA’s port traffic.
The Durban high court is expected to deliver a ruling on the dispute before the end of 2025.
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