The high cost of transporting goods across borders coupled with poor infrastructure has not only been a major obstacle to efficient trade but a serious drawback for potential investors. The development of logistics corridors is expected to boost regional trade.
Karen Kühlcke interviewed Johnny M Smith, business development executive for the Walvis Bay Corridor Group (WBCG), to examine the impact of logistics corridors for business in southern Africa. The WBCG includes members from both the public and private sector and their ‘Strategic Plan on Infrastructure’ promotes about 20 transport and logistics projects to cater for growth along the various Walvis Bay Corridors. Many regard these corridors as a model for other corridor projects in Africa.
1) Next year will mark 10 years since the launch of the WBCG (and 12 years since the Trans-Kalahari highway was opened). Are you satisfied with progress to date?
Oh yes. More than 55 000 tonnes has been recorded along the Walvis Bay Corridors in January 2009, which is a record volume. With the establishment of the Trans Kalahari Corridor Management Committee, hosted by the Walvis Bay Corridor Group (WBCG), various operational issues along the Trans Kalahari Corridor (TKC) have been addressed and successes achieved. Examples include the adoption of streamlined legislation and harmonised Customs procedures to facilitate transit traffic along the corridor; the successful implementation of the a Single Administrative Document (SAD 500); the adoption of common transit procedures; the harmonisation of border operating hours at the borders along the entire TKC and the harmonisation of
axle load limits.
The WBCG has also established its first branch office in Zambia in 2005 and last year opened its second branch office in Johannesburg, South Africa to create awareness and grow the market share for the Port of Walvis Bay.
2) Could you give an example of the kind of cost and time savings that someone using one of the corridor routes would be able to achieve?
On the TKC transit time is 48 hours from the Port of Walvis Bay to Gauteng, on the Trans Caprivi Corridor (TCC) the transit time is 3 days from the Port of Walvis Bay to Livingstone in Zambia, 4 to 5 days transit time to Lusaka and Ndola and 4 to 5 days to Lubumbashi. Along the Trans Cunene Corridor (TcuC) the transit time is 4 days from the Port of Walvis Bay to Lubango in Angola. Our focus is time-sensitive cargo to and from southern Africa, therefore, time savings translate automatically into cost savings.
3) With
the growth of the Angolan economy the Trans-Cunene corridor obviously represents great potential. Are the roads within Angola good enough to make transportation to Luanda via the Port of Walvis Bay a viable alternative to direct shipping to Luanda?
Currently a lot of cargo is being moved via the Port of Walvis Bay into Angola by road. The Angolan government is busy rehabilitating their main highways including the link between Namibia and Angola and the Angolan government has noted that by 2010 all their highways would be tarred. This makes Namibia a real alternative route for Angolan imports.
4) How is the pilot One Stop Border Post (OBSP) operating?
Along the TKC the establishment of the OSBP between the Trans Kalahari & Mamuno Border posts is still in progress. Thus far, a feasibility study has been completed and presented to the government and private sector in Botswana and Namibia. The OSBP along
the TKC serves as the pilot therefore, once it becomes operational, it will be replicated along the other corridors. A feasibility study for OSBPs has already been done in 2007 on the Namibia/Angola and Namibia/Zambia borders. The relevant governments are busy preparing the legal framework to establish OSBPs.
Logistics corridors to boost trade
5) Have operators been able to
organise sufficient loads on the return trip (i.e. back to the port)?
Until recently, two-way traffic has been achieved. This can be attributed to the increased confidence of the exporters who use the Walvis Bay Corridors.
6) The corridor project makes provision for onward transport via rail in some cases. What is the situation with rail transport in the region? Are any new lines planned?
The railway lines along the TKC run up until Gobabis from the Port of Walvis Bay and then continue from Lobatse in Botswana. In this regard, the application for funding of the pre-feasibility study to extend the railway line from Gobabis has been submitted to potential investment agencies. The railway lines along the TcuC extend from the Port of Walvis Bay to Ondangwa and the construction of the line from Ondangwa to Oshikango is in progress. And along the TCC the railway line extends from the Port of Walvis Bay to Grootfontein
and then resumes in Livingstone, Zambia. The Namibian government is in the process of doing a feasibility to extend the railway line from Grootfontein to Katima Mulilo then connecting to Zambia.
7) What effect do you think the global slowdown and slump in mineral prices is likely to have on traffic on the various routes?
Even though there has been a slight decrease in minerals being exported with the global slowdown, we have still experienced increased cargo volumes. The WBCG believes that with its focus of getting a bigger market share, traffic on the routes will still grow since the objective is to target potential volumes that we never had.
8) Has the opening of the corridors resulted in a significant decrease in activity at the Cape Town and Durban ports? Are you viewed as a competitor?
We view ourselves as an alternative trade route for Southern Africa and although these ports have been affected, we
believe that Walvis Bay offers a shorter route into the region for Europe and Americas cargo and hence we believe that Walvis Bay complements the other ports in Southern Africa. One of our major projects is the port expansion project, which will commence next year and increase port capacity from the current 200 000 TEU per year to 500 000 TEUs per annum.
9) You have started marketing the opportunities internationally. Which market do you think has the most potential?
Our main focus in terms of the international market is Europe and the Americas and they bear equal importance in terms of potential.
10) What are the remaining challenges inhibiting the full functioning of the corridor system?
The main challenge, although it is changing slowly, has been to change the mindsets of people and convince them to use the Port of Walvis Bay as an alternative port. Some people believe that Walvis Bay does not have
enough capacity to handle their goods but we have proved over and over again that, with the advantages of the corridors, Walvis Bay provides the preferred trade route to Southern Africa.
