South Africa Seeks Shipping Industry Partners for National Line Advisory Board

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A recent publication by the Department of Transport in South Africa reveals that the nation is embarking on an exciting journey to establish a new national shipping line for the first time in over 25 years. This initiative marks a meaningful milestone, as it transforms a long-standing discussion into actionable steps.

On May 30, the Department put out a call for shipping companies and industry stakeholders to join a steering committee dedicated to shaping this new state-owned entity, likely named the South African Shipping Company (SASCO). This move comes after nearly ten years of deliberation and policy groundwork initiated back in 2017 under the Comprehensive Maritime Transport Policy (CMTP).With Barbara Creecy now at the helm as Transport Minister,momentum is building. The primary aim? To lessen South Africa’s heavy dependence on foreign shipping lines for its import and export activities. Officials have pointed out that trade performance has been on a downward trend since the 1980s, largely due to not having a national carrier. SASCO intends to take charge of a ample share of seaborne trade under its own flag.The steering committee will comprise representatives from various entities including the Development Bank of Southern Africa (DBSA) and Industrial Development Corporation (IDC), among others. Their role will be crucial in crafting both business strategies and operational guidelines for this new venture.

This project is part of broader “radical measures” aimed at revitalizing maritime transport within South Africa, with CMTP highlighting establishing such a carrier as essential for enhancing ocean economy growth and maritime competitiveness.

Interestingly, among BRICS nations—Brazil, Russia, India, China—south africa stands alone without its own national shipping company; Safmarine was last seen operating until it was sold off in 1999. After being absorbed by Danish giant AP Moller-Maersk, Safmarine’s brand faded away fully by 2020.

To build SASCO’s fleet, officials are considering both newly constructed vessels and secondhand options across various categories like containerships and oil tankers—all proudly flying the South African flag.This follows draft legislation from 2022 aimed at establishing such an entity by this year with plans to ensure ownership across major shipping categories.

Additionally, there’s been commitment from authorities to prioritize locally-flagged vessels when accessing ports—a move expected to bolster SASCO once it’s operational.

However, not everyone is cheering for this initiative; some local players worry that introducing another state-run company could stifle competition within coastal trading routes. Despite these reservations, government officials are optimistic about SASCO’s potential impact on reclaiming control over maritime trade while breathing life back into an industry that’s been largely overlooked for years.

Interested parties have until June 30th to throw their hats into the ring for participation in shaping this pivotal project moving forward.

Reference: Department of Transport, South Africa