Category Archives: Shipping Industry Forecast 2013

Pacific Tycoon offers shipping industry forecasts for 2013, that will offer investors some investment insight as the sector continues to evolve and recover.

south africa shipping industry

South African Shipping Industry Offers Investors Opportunities

Once a major international trade route into the region, South Africa could see itself benefit from any increase in trade, between other BRICS countries (Brazil, Russia, India, China and South Africa). Nowadays, approximately 98 percent of the country’s internationally bound trade is transported by foreign ships and at least R160 billion a year is paid to foreign shipping services, who predominately operate outside of South Africa. Because of this startling fact, the development of a locally owned commercial shipping fleet is very likely to be a big part of any BRICS initiatives in the future, particularly if they intend to increase trade and encourage co-operation within the union.

Many people are very surprised to learn that at the moment, there are no locally registered merchant ships in the country. AP Moller-Maersk purchased Safmarine in 1999, and the Grindrod shipping fleet is registered in Singapore. Unlike its other BRICS trading partners, which continue to expand their transport fleets, this nation does not have any sort of domestic shipping line; to carry its (more than) 260-million tons of cargo a year. For example, Brazil has a fleet of 172 cargo vessels, Russia has 1,891 vessels, India has 534 and China leads the group with 2,044 merchant ships. Aside from this obstacle, South Africa finds itself well placed geographically to encourage and accommodate trade between BRICS members and for the rest of Africa, as well. This presents valuable opportunities for investors to form strategic partnerships with maritime stakeholders and emerge as pioneers in developing a maritime development agenda for the prospering region, that, aside from building a fleet of shipping vessels; provides investors with a good reason to invest in the Industry and incentive to share their vision for the future.

We want ships that can be built in South Africa by South Africans, in partnership with other people.- Chief of the SA Navy.

South Africa demonstrated to the international community that it has the knowledge, ability and infrastructure to produce world-class vessels, when it built the SAS Drakensberg, the largest naval vessel to be designed and built in Durban (1984). However, repeated complaints from within the industry echo that (at the moment) the country does not have suitably trained personnel to operate commercial vessels (even if they were owned locally) and that local and government finance institutions have expressed that they do not have the desire to finance shipping projects, now or in the future. These challenges have created investment opportunities for the international investors that go beyond just constructing shipping vessels and are likely to include investment into port and harbor improvements, innovative technology, personnel training and even shipping container investments, in the future.

khalifa shipping port

1 Million Cargo Containers Expected at Khalifa Port in 2013

khalifa shipping portLess than a year after opening for business, the Khalifa Port is preparing to take delivery of a second batch of automated cranes, to help meet the rising demands of their international shipping clients. Widely renowned as the first fully-automated dockyard in the region, the Taweelah-based deep-water terminal has taken over from the aging Port Zayed, as the Emirate’s primary maritime trade terminal.

When comparing the two United Arab Emirates shipping ports, Khalifa port is much larger than Port Zayed, which after more than four decades of service has nearly reached its annual capacity of 800,000 shipping containers. Although Port Khalifa was originally designed with an initial capacity of 2.5 million shipping containers per year, this traffic figure could easily increase to 15 million, by 2030. Already well on their way to reaching this goal, Abu Dhabi Ports Company expects to handle more than one million containers in 2013.

We are looking to grow 20 to 30 per cent this year against a backdrop of 3 to 4 per cent growth in the global industry,“- The Chief Executive of Abu Dhabi Ports Company.

As officials at Khalifa port continue to open the gateway for international trade and investment, the ADPC is counting on a steady stream of business and revenues from tenants in the Khalifa Industrial Zone Abu Dhabi (Kizad), which conveniently encircles the busy shipping port; to continue to fund development of the facilities. It has been estimated that the companies that have already purchased land in the Kizad thus far, will be shipping approximately 240,000 containers a year, once they have completely established operations in the industrial zone.