South Africa to Establish Steering Committee for National
South Africa Moves Forward with National Shipping Line
South Africa’s Department of Transport has taken significant steps toward establishing a national shipping line, a plan that has been in discussion for nearly a decade. Under the leadership of newly appointed director Barbara Creecy, the government aims to create the South African National Shipping Company (SASCO) to reduce reliance on foreign shipping firms. This initiative seeks to address the ongoing decline in the country’s import and export trade, which has persisted since the 1980s.
Addressing Dependence on Foreign Shipping
South Africa’s heavy reliance on foreign shipping companies for its trade has raised concerns among government officials. The absence of a national shipping carrier is viewed as a contributing factor to the negative growth in the country’s import and export sectors. Currently, South Africa stands out as the only member of the BRICS alliance—comprising Brazil, Russia, India, and China—without its own national shipping company. The last significant attempt was Safmarine, which operated until its acquisition by Maersk in 1999, leading to the eventual dissolution of the brand in 2020.
The South African government is not alone in its pursuit of a national shipping line. Countries across Asia are exploring similar initiatives, while Australia has begun efforts to restore its own maritime operations. Even the United States has emphasized the importance of rebuilding its merchant marine under previous administrations. By establishing SASCO, South Africa aims to enhance its maritime sovereignty and reduce its dependence on foreign carriers.
Formation of a Steering Committee
To facilitate the establishment of SASCO, the Department of Transportation has invited proposals from interested parties to join a newly formed steering committee. This committee will play a crucial role in developing the business model for the national shipping company. Invitations have been extended internationally, targeting some of the leading global shipping firms. The committee will comprise members from the Department of Transportation, the Development Bank of Southern Africa, and other relevant stakeholders.
The government’s commitment to reviving the maritime transport industry is outlined in its Comprehensive Maritime Transport Policy, published in 2017, which emphasizes the need for a national shipping carrier. Discussions surrounding SASCO’s formation have indicated that the government will consider both constructing new vessels and acquiring existing ships or companies. All vessels under SASCO will be flagged in South Africa, with an initial focus on four segments: containerships, crude and chemical carriers, dry bulk carriers, and bunker barges. The official notice for the steering committee was released on May 30, allowing 30 days for responses.
