Johannesburg - High costs and inefficiency at South African ports are placing the local vehicle manufacturing industry at a disadvantage to its international competitors, sector insiders have said.
Out of 11 emerging countries, South African ports charge the most to move a 40-foot container, according to data from GPSC Local Country Team. It costs $821.60 (about R6 000) to transport a container of this size in local ports - almost double the price of the next most expensive country, Argentina.
Denise van Huyssteen, communication manager at General Motors SA, said logistics costs remain one of South Africa's biggest competitive disadvantages.
"High port costs charged at SA ports, as opposed to countries in South America and Asia, are a major contributing factor and this is affecting the overall competitiveness of the local motor industry," said Van Huyssteen.
"Cargo dues are not charged at major ports elsewhere in the world. Cargo dues in South Africa are supposed to be channelled into the development of port infrastructure," she said.
"In other markets around the world, port users are not the funders of port infrastructure - this is generally funded by government and local authorities."
Dave Powels, president of the National Automotive Association of South Africa (Naamsa) and MD of Volkswagen South Africa, concurred, saying some car makers bypass local ports in favour of Maputo in Mozambique.
Cape Town last in productivity stakes
"This is the consequence of a national organisation that is not investing in a key industry," said Powels, referring to transport utility Transnet.
South African ports also rank poorly in the productivity ranks, according to a benchmarking study conducted by the Automotive Industry Development Centre.
Productivity is measured by the number of container moves in an hour. Cape Town is the most unproductive port, ranking 17th out of 17. Durban is SA's most productive port, ranking 11th in the same study. The most productive port is Yokohama in Japan.
"From a productivity perspective, ports in South Africa are far behind global standards, further exacerbating the cost penalties which we pay in this market," said Van Huyssteen.
Volkswagen and GMSA are two of the biggest users of Port Elizabeth's car terminal port. This terminal is being upgraded at a cost of R16m to handle more traffic.
Other ports in South Africa equipped to transport cars are Durban and East London. The Durban port is undergoing investment to increase its capacity.
Another new development is the Ngqura port in the Coega industrial development zone near Port Elizabeth.
South African car makers exported 57% of their final output in 2008, according to Naamsa. Automotive exports made up 13.7% of the country's total exports in 2007.
Representatives of Transnet Port Terminals were not available to comment.
- Fin24.com