Time to Act – South Africa has the Capacity, Duty and Beneficial Opportunity to make Sustainable the Cape Sea Route an Alternative Trade Route to the Suez and Panama

South Africa Maritime holds the logistics key to the worsening global maritime trade supply chain disruptions caused by the escalating geo-political crisis along the world’s largest sea trade route of the Red Sea/ Suez Canal.

It is widely acknowledged that maritime transport serves as the lifeblood of international trade, with ships carrying over 80% of all goods traded worldwide. The North Africa Sea Route (Mediterranean/ Suez/ Red Sea Route) handles over 17,000 international trade ships per annum, carrying over 12% of global trade, including 30% of world container trade and 7 million barrels of Oil (UNCTAD). The imposition of the route blockade has resulted in a notable surge in prices across various sectors, particularly in energy, food, and other commodities. Shipping costs have more than tripled due to the disruptions, costs of shipping risks, delays and route diversions to deliver the cargoes and commodities to markets.

For its part, South Africa is fundamentally a maritime nation, with a heavy dependence on shipping for its overall international connectivity and wealth creation.  International trade – goods imports and exports – forms roughly 60% of the country’s Gross Domestic Product (GDP), of which 98% in volumes and 80% in value are facilitated through maritime transportation. At a regional level, South Africa boasts the largest intra-Africa trade in finished goods resulting in over 50% container trade share, and relies heavily on shipping services. The country is connected by sea to 39 out of 55 (70%) countries in Africa including 9 out of 15 (60%) in the Southern African Development Community (SADC). Geographically, South Africa has the largest Exclusive Economic Zone (E.E.Z.) and claims 2.8 times its land mass of 1,2 million square kilometres. Proudly possessing the longest mainland coastline in Africa, measuring approximately 3000 kilometres, South Africa is strategically positioned as a significant international maritime transit hub. The country’s coastline links it to three major oceans—the Indian Ocean, the Atlantic Ocean, and the Southern Ocean. This geographic advantage establishes vital sea connections to the Americas (North and South), Europe, and Asia (Far East, Central, and Middle East), extending through to the Antarctic. Consequently, any challenges or disruptions at sea directly impact the country’s economy, influencing goods, food, and energy prices.

Amidst global attention directed to Houthis’ ongoing armed blockade of the Red Sea strait to international maritime trade flows, the potential blockading of Egypt’s Suez Canal due to the political centrality of Egypt to the escalating Israel – Palestine armed conflict, and the resurgence of armed Somali piracy along the Gulf of Aden, there is an added major, yet largely ignored dimension, which arises from the diversion of maritime traffic away from the  Panama Canal, which is currently grappling with serious infrastructural problems. These disruptive factors present a complex landscape with no short-term solutions. The global shipping industry has to find and exercise feasible alternatives that make viable economic and commercial sense to protect the maritime supply chains that enable it to move over 80% of global trade.

In all these instances, South Africa’s Cape Sea Route is the answer and has become a readily available and feasible alternative to take. The realization of its potential hinges on the consistent provision of critical world-class maritime services along the route– service delivered efficiently, safely and cost-competitively, without causing undue delays and unmanageable risks. The South African maritime industry is poised to respond affirmatively to the challenges and provide the solution to this unprecedented global challenge. It has the depth, quality and diversity of scope and quality of services to take up the challenge.

Given the specific requirements of redirected traffic from the North Africa Sea Route and the Panama Canal, coupled with the high volumes of underserved users of the Cape Sea Route, there is an urgent need to expand the capacity of the industry to systematically and comprehensively provide the requisite services through the Transshipment Hub Ports and Off Port Limits facilities. The ports with sufficient sea room to provide expanded in-port services include Richards Bay in the East, Port Elizabeth/Ngqurha in the South and Saldanha Bay in the West.  Each port exhibits distinct areas of specialization, leveraging the market strength of its regional complex:  Richards Bay – Durban Complex in the East, Port Elizabeth – Ngqurha Complex in the South and Saldanha – Cape Town Complex in the West.

South Africa has already established comprehensive frameworks, including the Operation Phakisa Ocean Economy Policy, Comprehensive Maritime Transport Policy (CMPT), International Maritime Center Strategy and sector services plans. These frameworks engage strategic stakeholders encompassing Government, Industry and Business, Academia and Research, as well as Civil Society groupings.

Throughout human history, wealth tended to favour societies and nations characterized by boldness, imagination, and productivity. This advantage has primarily stemmed from factors such as geographic location, including access to crucial trade routes, reliability in the security of supply, safety through effective risk management, high productivity driven by innovation and product quality, and a strong service culture evident in stakeholder and customer relations. South Africa is urged to speedily acknowledge its role as the global maritime powerhouse and custodian of a major trade route, the Cape Sea Route, situated at a maritime choke point.

As a nation heavily reliant on international trade for its prosperity, South Africa stands as a significant maritime power within the international community. In light of these considerations, a duty arises, there is a massive opportunity to create reputational and economic value and wealth for the nation and duty beckons as the responsibility to the world and the region has risen.

It is time to respond to the challenges facing global shipping and step in to play a significant part in rendering the Cape Sea Route feasible and the trade economically viable. The call is without doubt in the country’s national interest. Embracing this opportunity presents substantial gains with minimal risk, making it a compelling venture for the nation.

There is a lot to gain and nothing to lose.