South Africa also boasts cheapest tariffs for merchant shipping sector than any other ports in the world: National Ports Regulator

Xhariep Dam (Free State): 30 September 2016

The beefing up of ocean environmental protection, particularly pollution prevention as well improvement of labour conditions for seafarers are among a series of initiatives currently being pursued in broad efforts to enhance rejuvenation and development of the maritime esector, the Transport Department confirmed this past week during the global observation of the World Maritime Day 2016.

Speaking at South Africa’s own version of the event held at Xhariep Dam in the Free State on Thursday, and whose international theme for 2016 was: Shipping is indispensable to the World; Transport Department maritime transport branch acting deputy Director General, Mr Clement Manyungwana highlighted a series of activities the department was engaged in currently with several stakeholders – among them other Government departments, the International Labour Organization (ILO) and the International Maritime Organization (IMO) – to strengthen the country’s hold and management of its maritime sector development drive.

According to Mr Manyungwana, among the initiatives he said were closely aligned to the country’s National Development Plan (NDP) were;

• development of an integrated transport strategy,
• enhancement of ocean security through acquisition of additional vessels,
• promulgation of legislation to advance the protection of seafarers onboard vessels, as well as
• development of further maritime policy and legislation

The improvement and enhancement of ocean environmental protection regarding particularly oil pollution was in part, in recognition and appreciation of the growth in shipping traffic drawn to newly established bunkering services at the country’s newest deep water port, the port of Ngqurha near Port Elizabeth in the Eastern Cape province.

For his full remarks (Audio only), Click Here

Meanwhile, National Ports Regulator CE, Mr Manesh Fakir said in efforts dedicated to attracting more global business trade vessels onto the countries’ port and to enhance local exports competitiveness, several studies had been conducted over the last year and which have led to identification of various efficiencies as well as establishment of a basket of incentives in the form of tariff reductions.

Mr Fakir said as a result, shipping liners reporting on South Africa’s ports now enjoyed lower prices of up to 50% less in comparison with comparable ports elsewhere in the world, with iron ore shipments specifically now paying less by up to 70-80% – largely due to the Rand/Dollar exchange effect.

On efforts to bolster South Africa’s export trade, he said that locally manufactured goods for export through containers also enjoyed as much as 70% lower tariffs compared containerized imports.

However, Mr Fakir warned that with global fleets increasing vessel carrying capacities leading to reduction in actual fleets, tariffs would not hold down for too long and might indeed increase over the next 10 years largely due to infrastructure maintenance and upgrading costs.

For Mr Fakir’s full remarks (Audio only), Click Here

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