Chair, the US$50 congestion surcharge considered by shipping lines docking at the Durban port could cost South African importers more than R500 million per year and push up inflation. This crisis resulted because the ANC government missed the ship with long-term capital expenditure planning.
With the promise of Asgisa still having to be felt, congestion will remain a problem at South Africa's ports over the medium term. In the light of the burgeoning demand for, and the lack of logistical efficiency at our country's ports, the state needs to reconsider opening up South Africa's ports operations for increased private sector participation.
There is no need for South Africa to reinvent the wheel. Singapore's port authority, for example, is the second most efficient port operated in the world, and it is an example of an expert port operator that is internationalising its business. The Singaporeans have an excellent track record with knowledge transfer to locals and have already been contracted to manage certain of the operations of the port of Rotterdam, which is the most efficient port in the world.
They've also expressed interest in doing business in South Africa. The ANC government needs to show that it is serious about driving down the cost of business and of consumer goods by making our ports more efficient. Thank you.