Though its Brics partners strive to expand their already considerable merchant fleets, South Africa does not have a single national -flagged commercial vessel on its shipping register, MPs heard yesterday .

“South Africa has no ships on its register and pays R37-billion a year [2007 figures] in maritime transport services to foreign owners and operators,” SA Maritime Safety Authority CEO Tsietsi Mokhele told parliament’s transport portfolio committee.

Five years ago the cost was equivalent to moving 180 millions tons of freight . The most recent figure, Mokhele said, was about 264 million tons moved at an estimated cost of R45-billion.

Committee members heard that Brazil operated a fleet of 172 merchant vessels, Russia 1891, India 534 and China 2044. Brazil, Russia, India, China and South Africa make up Brics.

Mokhele called for a policy framework to enable the establishment of both a coastal and blue-water merchant fleet.

About 98% of South Africa’s total import and export trade is currentlycarried by foreign ships. Up to 12000 vessels visit the country’s eight ports each year.

This is despite the fact that South Africa i s a maritime country with over 3000km of coastline and a vast seaward economic exclusion zone .

The country’s seaborne cargo constitutes 3.5% of global sea trade.

“All our Brics partners are regional maritime powers with vast maritime interests and capabilities in sea trade, commerce and naval influence,” Mokhele said.

He also questioned the commercial terms under which South African companies exported their products.

Many products were shipped out of the country “free on board”, which means the point of sale for the product is the port through which it was exported.

“All the benefits accrue to the nation that nominates the transport,” he said.

“We only deliver up to [the export port]. That’s where all our trade stands. From [the port] all the way to market is deemed as a risk taken by the other economies. And that is where we’re losing out as a country.”

He said there was a “huge appetite” for investment in the local maritime sector.

He said the authority was talking to the Industrial Development Corporation with a view to creating special financial facilities to support the sector.

 

Source: http://www.timeslive.co.za