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South African shipping industry not conducive to state-owned shipping line, expert says

John Maytham spoke with Andrew Pike, Head of Ports, Transport and Logistics at Bowmans Law.

The Ministry of Transport wants to establish the country’s first national vessel entity called the South African Shipping Company.

It aims to reduce South Africa’s dependence on foreign governments and companies for essential imports and exports.

The Department [reportedly](http://17:50 [Feature] Song, Book & Dish Kumi Naidoo, activist and author of Letters to my Mother Kumi Naidoo) has published the first South African shipping company bill that will protect the country from supply chain disruptions.

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Logistics and transport lawyer Andrew Pike notes the protective reasoning which aims to reduce South Africa’s overreliance on foreign vessels.

However, he considered the justification strange. He listed the challenges of cost scalability, competitiveness and legislative hurdles plaguing the South African maritime industry.

Pike said the initiative is ultimately costly and counter-intuitive.

He added that the absence of a national shipping carrier suggests that the environment is competitive and will require a scalable fleet of vessels to be able to compete in the market.

The fact that we only have a few of our own vessels on the South African registry suggests that vessels cannot survive in this environment for various reasons…

Andrew Pike, Head of Ports, Transport and Logistics – Bowmans Law

Listen to the full audio above.


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