South Africa to Establish Steering Committee for National Shipping Line
South Africa’s Department of Transport has announced what is being called the first definitive steps toward executing the plan for establishing a national shipping line. The concept has been discussed for nearly a decade but the newly named in 2024 director of the department, Barbara Creecy, has now spelled out the steps to making the South African National Shipping Company (SASCO) a reality.
Like many countries, South Africa cites its near total dependence on foreign shipping companies for its imports and exports. The government is seeking to reverse what it calls negative growth in import and export trade which has persisted since the 1980s. It believes the lack of a national shipping carrier is a factor. The plan calls for reducing or ending dependence on foreign carriers and increasing South Africa’s maritime sovereignty.
Officials point out that South Africa is the only nation in the BRICS alliance (Brazil, Russia, India, and China) that does not have a national shipping company. The closest the country had was Safmarine which was established at the end of World War II and ran till being sold to Maersk in 1999. Maersk ended the brand name and all ties to the South African flag in 2020.
South Africa is far from alone in expressing the desire to recreate its merchant marine. Countries in Asia have discussed similar efforts while the Australian government of Prime Minister Anthony Albanese has begun the process of restoring its national operations. Even the United States under Donald Trump is highlighting the need to rebuild its merchant marine.
South Africa’s Department of Transportation invited interested parties to submit proposals to join a steering committee that it will launch for the new national shipping company. Media reports are that the invite was sent internationally and includes some of the leading global shipping companies. The purpose of the committee will be to develop the business model. It will include members from the Department of Transportation, the Development Bank of Southern Africa, and other relevant stakeholders.
The government published its Comprehensive Maritime Transport Policy in 2017 which lead to extensive discussions about the maritime industry. It undertook enabling legislation in 2022. One of the pillars of the police calls for “establishing a national shipping carrier as a strategic pillar in the revival of the maritime transport industry.”
In prevision discussions on the formation of SASCO, the government has said it would look at both new construction and the acquisition of ships or companies. All the vessels will be flagged in South Africa. It has proposed focusing on four segments starting with containerships but also crude and chemical carriers, dry bulk carriers, and bunker barges.
The official notice for the formation of the steering committee was released on May 30. It gives 30 days for a response.