By Lungiswa Nyembezi, KwaZulu-Natal branch manager at Servest Marine
SOUTH Africa’s rich marine heritage is one of its key competitive advantages. With a coastline stretching over 4 000 km across two oceans, South Africa is a national as well as an economic treasure. Its economic value lies in its role as part of a global transport value chain. Maritime transport holds a unique position in global trade because of its capacity and cost structure. These maritime transport characteristics are especially relevant to countries like South Africa that trade in natural commodities.
According to the United Nations Conference on Trade and Development, over 80% of global trade by volume and 70% by value is carried and handled by sea.
Over 80% of global trade by volume and 70% by value is carried by sea – UN
There is no doubt that shipping capacity is the most logical option for all stakeholders in the natural commodity sector, where scale is of paramount importance.
In 2021, when the Ever-Given megaship stalled, billions of dollars in trade were lost. This highlighted the world’s reliance on maritime transport.
In addition, the maritime sector significantly contributes to employment. There are more than 1,6 million people employed in the sector around the world, many of whom come from developing countries.
In the past few decades, globalisation has created one large economy where resources need to be moved across continents and countries. Considering the unequal distribution of natural resources and raw materials across the globe – some countries have far greater volumes of resources than others – it is essential to be able to map demand with scarcity in order to facilitate global trade.
Due to its unique position on the continent, South Africa can contribute significantly to the maritime industry on the continent; the country serves as an economic gateway for many SADC countries. With its history as an industrial hub of the continent and a high-volume exporter to many international markets, South Africa has become an integral part of the region’s economic value chain.
This year represents a critical juncture for the maritime sector in South Africa. It is also an advantageous time for South Africa, which has reliable ports, to support rail and road infrastructure.
Low reliability in transport infrastructure has resulted in economic losses of at least R50 billion – Minerals Council
The Minerals Council estimates that low reliability in transport infrastructure has resulted in economic losses of at least R50 billion. A key reason for these economic losses was the inability of Transnet’s rail infrastructure to allow exporters to move goods to shore for eventual shipping. Due to this, South Africa has not maximised the benefits of high commodity prices and increased demand following the Covid-19 pandemic. This has negatively affected the maritime sector, as shipping volumes have not reached the levels they could have reached during this period. There has never been a better time for the industry to recover than now.
For the country to improve its economic output in the medium term, its ports and non-commercial harbours must operate optimally. According to government estimates, by 2033 the maritime sector is expected to employ one million people with a GDP contribution of R177 billion. To facilitate this, there is a need for more strategic interventions and initiatives aimed at building the skills profile of the country’s maritime workforce. Strategic partnerships will be essential to drive this. Currently, some partnerships are being negotiated, including the collaboration between the South African International Maritime Institute (SAIMI) and the International Association of Maritime Universities (IAMU); but more of these partnerships will be needed. The goal of this partnership is to provide maritime education and training for seafarers in the global shipping industry. By developing skills, the maritime sector can punch above its weight in the economy.
By 2033 the maritime sector is expected to employ one million people with a GDP contribution of R177 billion – Nyembezi
As a key stakeholder in the maritime industry, Servest Marine has participated in several learnership programmes and has delivered effective and efficient services throughout the industry. Crew changes, offshore support, offshore assistance to vessels in distress, and dedicated crew transport including services beyond the outer port limit, are just some of the services available.
Maritime transport is a key part of the global economy. Therefore, maritime industry players in South Africa have a responsibility to contribute to skills development and upskilling. This will help the government meet its goal of employing one million people by 2033 and will also help address some of the social and economic challenges that the country faces.
To revamp the country’s economy in the post-Covid-19 era, innovation in the maritime sector will be crucial.
ENDS
