South Africa has initiated the establishment of a national shipping line after more than 25 years. The Department of Transport announced the call for shipping companies to participate in forming a steering committee for the anticipated South African Shipping Company (SASCO). This move is a significant milestone in transforming the long-discussed plan into reality, aligning with the Comprehensive Maritime Transport Policy initiated in 2017. The primary objective is to enhance South Africa’s independence in maritime trade, reducing reliance on foreign shipping lines for import and export operations.
Under the leadership of Transport Minister Barbara Creecy, the plan to create the national shipping line is gaining momentum. The country has experienced trade challenges since the 1980s due to the absence of a national carrier. The new venture aims to address this issue by facilitating a substantial portion of the nation’s maritime trade under the South African flag. The steering committee, comprising representatives from key entities like the Development Bank of Southern Africa and the Industrial Development Corporation, will play a pivotal role in shaping the business model and operational framework for the national shipping line.
Establishing a national carrier is a strategic move outlined in the Comprehensive Maritime Transport Policy to invigorate the maritime transport sector and bolster South Africa’s cargo movement capabilities. Notably, South Africa is the sole BRICS nation without a national shipping company, following the discontinuation of Safmarine in 1999. The government’s strategy involves exploring shipbuilding and acquiring secondhand vessels to develop the SASCO fleet, encompassing a diverse range of vessel types to cater to various cargo needs.
The recent draft legislation supporting the national carrier’s establishment highlighted the importance of having a local presence in major shipping categories. Furthermore, the government has committed to granting preferential access to South African ports for locally-flagged vessels, a move expected to support the new national carrier upon its inception. Despite concerns raised by some domestic shipping stakeholders regarding potential competition reduction, government officials are optimistic about the positive impact SASCO will have on South Africa’s maritime trade landscape.
Interested parties have until June 30 to respond to the public notice and express their interest in joining the steering committee. The government’s push to revive the shipping industry through the creation of a national carrier reflects a broader agenda to bolster the country’s maritime competitiveness and strengthen its control over maritime trade operations. This initiative marks a crucial step towards reshaping South Africa’s maritime sector and fostering economic growth through enhanced shipping capabilities.
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