South Africa has had a comprehensive maritime transport policy in force since 2017. Its key strategic objective is to develop the country into an international maritime centre by 2030.
Much progress is being made towards the attainment of this vision. Part of the work is legislative reforms in areas of safety, security and the protection of the marine environment. This opinion is about the work being done to reclaim the loss of the country’s shipping portfolio triggered by the sale of Safmarine at the dawn of democracy in 1994.
The Merchant Shipping Bill now in parliament provides for a regulated coastal shipping permit system. South Africa has unregulated coastal shipping, resulting in a complete domination of its maritime value chain by foreign shipping carriers. In shipping, cargo is king. The reason South Africa is not a “maritime king” is that it is not in control of its cargo. This bill aims to bring back control of domestic cargo to South Africa.
Claims that the Merchant Shipping Bill undermines port flexibility or reinforces inefficiencies overlook the fact that South Africa’s major inefficiencies stem not from regulatory overreach but from systemic underinvestment in port performance and logistics infrastructure. These challenges are being dealt with through improved governance, investment and operational reforms that the National Logistics Crisis Committee is busy with.
The bill reflects a calibrated strategy to shift South Africa from dependency on foreign-flagged liners to a more balanced and sovereign maritime economy, while still allowing for targeted exemptions or phased implementation to ensure minimal disruption to supply chain efficiency.
The core objective of regulating coastal trade is to provide local freight-forwarding and ship-owning companies with greater opportunities to process and transport South African cargo between domestic ports. The bill aims to prohibit foreign vessels from picking up and dropping off locally manufactured cargo between South African ports — a practice now permitted.
This approach will introduce phased, or conditional, coastal shipping which in turn will create a predictable policy environment for domestic investors.
Allowing limited foreign participation where capacity is lacking will maintain service levels and prevent economic disruptions.
Financial support and regulatory incentives will accompany these provisions to accelerate domestic fleet development and ownership. As a maritime nation, we cannot remain dependent on road, rail and foreign shipping lines. A forward-looking coastal shipping regulation, backed by investment and industry consultation, is necessary for building a secure, competitive and resilient national logistics network.
While concerns about cost, congestion and potential trade barriers are understandable, this objection presents a narrow and static interpretation of the coastal shipping provisions in the bill. The claim that “all import containers will be received at one port” misrepresents the intent and likely implementation of coastal shipping policy. Nowhere does the bill mandate a single-port entry system for all imports; rather, it aims to build the capacity for domestic maritime transport and promote local shipping services for cargo movement between ports — not to centralise all import logistics into one choke point.
South Africa should not just limit coastal shipping to vessels with permanent coastal deployment — this will be missing the full opportunity for national growth, maritime workforce development and industrial capacity building. A much broader, sector-sensitive coastal shipping strategy that is flexible enough to avoid disrupting global liner flows, but robust enough to support multiple vessel types, is essential to realising the full potential of South Africa’s maritime transport policy.
South Africa transports large volumes of citrus, pome and stone fruit for domestic consumption and for export. Producers stand to benefit from a robust local shipping industry over time. Relying on foreign carriers indefinitely keeps South Africa locked out of the value chain and susceptible to slot shortages, price hikes and reroutings that prioritise other nations.
Coastal shipping regulation encourages the growth of South African maritime services tailored to agricultural exports — potentially providing better service reliability, prioritisation of perishable cargo and better port integration.
The fear that coastal shipping will drive up logistics costs and reduce competitiveness is based on a narrow, short-term view of the shipping landscape. A regulated coastal shipping system should be seen as a catalyst for developing a globally competitive maritime sector, with tailored support for high-risk industries such as agriculture. The key is sequencing and support, not abandonment. With the right approach, South Africa can retain its export competitiveness and build a sustainable maritime economy.
South Africa can implement a cost-optimised, industry-aligned coastal shipping regime without the need for extensive port upgrades or redesign. By incentivising the right kind of vessels and integrating coastal shipping into the existing logistics architecture, the country can unlock significant economic, operational and environmental value.
• Ntuli is chief director for maritime policy and legislation at the department of transport and writes in his personal capacity
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.