Increase in port activity is needed to boost economy

TALK of drought is commonplace as the central and northern parts of the country – much of the grainproducing region – have had minimal rainfall. Although soaking rain fell over much of the Western Cape on Sunday, the Swartland wheat crop is a shadow of other years as lower rainfall figures and sweltering temperatures feature in discussions in Moorreesburg as much as discussions about the future of the Springbok coach.

In the shadow of the drought, the modern handymax bulker Federal Severn discharging South American grain at B Berth over the weekend is significant and is a portent for harbour scenes next year. South Africa is a net importer of grain, but thousands of additional tons will have to be imported to meet the requirements of the drought-ravaged country.

Wait then for the arrival of the grain ships – from South America, the US Gulf and even China – carrying cargoes to augment local production. The well-built 189m, five-hatch Federal Severn was the only freighter in the Duncan Dock when I visited a few days ago.

Indeed, apart from the bulker, a small products tanker was at A Berth, two units of the Swires’ offshore fleet were in port, and the usual fleet of vessels were at the repair quay, leaving kilometres of vacant berths in the dock.

The deserted wharves contrasted with images displayed on the ship-tracking websites that show a regular flow of about 50 ships passing the Cape on any day, and led me to resurrect a topic about which I have written so many times.

While some of those vessels will call at a South African port in the course of their current schedules, and some are laden vlccs or Capesize bulkers heading for Asia and are too deep-draughted to enter most local ports, the rest present a huge potential market for local bunker suppliers, chandlers and marine engineering works.

Why do we need those ships in port? Simply because they have the potential to bring in significant revenue – perhaps as much as R1 million each, excluding fuel purchases – to the ports and to a host of ancillary services, while an increased sustained flow of bunker ships means long-term job creation. If profits of local ship suppliers rise commensurate to increased business, so too does the tax paid. What can be done to draw those passing ships to our harbours? A regular supply of various grades of bunkers, coupled to guaranteed berthing within an hour or two of arrival, and discounted port dues for bunker ships will certainly bring additional callers to local ports.

Because ageing shoreside fuel lines cannot be used, a second bunker barge in Cape Town will help to supply bunkers quickly and efficiently. What if we don’t attract the passing vessels? The country will miss a great opportunity to gain foreign revenue (dollars) as ships go elsewhere to bunker – and we must remember, shipping is an industry of habit.

Successful and efficiently managed bunker calls at Mauritius or Walvis Bay will encourage owners to send their ships back there, ignoring other benefits offered by South African ports.

And don’t forget the jobs, the dollars paid for fuel, port dues, light dues, State levies, small machinery repairs, stores, agents’ fees, banking charges and even extra taxi fares that would go elsewhere. During the Operation Phakisa discussions in Durban last year, the ports’ role as catalysts for industrial expansion and entrepreneurial development was highlighted.

Let’s transform that talk to the walk. But let’s do it urgently. Watch this space as the selection process for the salvage service provider occurs.