MFLF Workgroup - Maritime Sector

Background

The Maritime Sector of the MFLF Workgroup meets to discuss the influences of the Maritime Sector on the movement of freight and cargo to and from the Mpumalanga Province.

As a landlocked province, Mpumalanga's - and indeed Gauteng and Limpopo's nearest deep water port is situated in Maputo in neighbouring Mozambique. The development of the Maputo Corridor and the removal of constraints for importers and exporters, especially at the border, has been singled out in the National Freight Logistics Strategy as an important element in implementing its objectives.

The deep water ports of Maputo and Matola have undergone major reinvestment and reconstruction work and within the context of the National Freight Logistics Strategy is not necessarily seen as competition for the South African ports of Richard's Bay and Durban, but as a supplemental port within the SADC framework, especially in light of the fact the Gauteng-Durban Corridor is close to full capacity and planned expansion works will take several years to complete.

 

NFLS Maritime Sector Challenges for the Gauteng - Maputo Corridor

At its inception in 2005 the National Freight Logistics Strategy identified high-level gaps within the context of Maritime Operations for the Gauteng - Maputo Corridor, namely:

• Few ship calls and the abscence of a scheduled container service at the port of Maputo limits freight
• Draught limitations restrict the possible use in future of larger vessels at the port
• Capacity at border posts particularly during peak season is limited
• The poor condition of rail infrastructure and almost no rail traffic to the port of Maputo limit the use of rail on the Corridor

Since then, significant improvements have seen amongst others:

• Improved scheduled services for container vessels, especially to the Far East
• Port dredging which allows for the standard operational capability of handling Panamax sized vessels
• The decision by the respective Presidents of Mozambique and South Africa to establish South Africa and Mozaqmbique's first One Stop Border Post along the Corridor, with development in the planning stage on both sides between various affected government departments, whilst capacity constraints remains a serious problem dealt with in the MFLF by the Landside Sector
• A complete rehabilitation of rail along the Corridor expected to be completed by the end of June 2007, also discussed within the MFLF by the Landside Sector and indicated by Spoornet and CFM during their public launch of the Ressano Garcia to Maputo railway line in February 2007.

However, the NFLS focusess not only on the development of one port and the transport artery to and from that port, but on how South African port operations in general impact on the South African freight logistics system. It identifies some key high-level problems, i.e.:

• Low productivity levels due to outdated technology and methodologies
• Poor planning in integrating port operations with intermodal landside operations
• A lack of competition in port operations
• Lack of a substantially homegrown SADC fleet of ships

The NFLS goes on to say that:

The effects of this innapropriate market structure are to saddle the country with costs of that inefficiency in lost jobs in the cargo producing sectors, as well as periodic congestion of the terminals with the resultant levying of congestion charges on cargo owners by shipping lines, to the value of up to USD100 per container. [2005]

 

MFLF Maritime Sector Objectives

The objectives of the MFLF with regards to the Maritime Sector aims to create a platform of collaboration between ports, terminal operators, the private and public sectors to ensure ports facilitate cargo flow requirements to and from Mpumalanga.

As a landlocked province, Mapumalanga's producers, manufacturers, importers and exporters will inevitably feel the impact of any constraints experienced in South Africa's ports and very importantly, those constraints which limit the use of under-utilised capacity at nearer ports such as the ports of Maputo and Matola in Maputo, Mozambique.

As with the MFLF Aviation Sector, Maritime Workgroup business is conducted in a combination of the Modal Workgroup Sectors. Stakeholders who wish to participate in this sector within the MFLF Workgroup can stay informed about the next Maritime Sector meeting by looking at our Upcoming Events page or by subscribing to the MFLF Secretariat's regular newsletters. All stakeholders with an interest in moving freight are welcome.