Ship
Image by Luca Falvo Pixabay

KEY POINTS

  • South Africa has been dependent on foreign carriers for both imports and exports
  • SASCO will be under the authority of a minister chosen by the president
  • SASCO will own and manage a fleet of vessels, along with closely working in the logistics sector

South Africa's Department of Transport has released the first draft of the Shipping Company Bill aimed at launching a national shipping line.

The decision was taken in response to the unprecedented vulnerabilities that were exposed in the supply chain sector during the time of the pandemic.

South Africa has been dependent on foreign carriers for both imports and exports, and the new shipping company is expected to shield the country from supply chain disruptions.

The plans to launch the new shipping company come at a time when the world is facing supply chain issues elevated by the ongoing tensions in Ukraine, along with the problems due to the Covid pandemic which still wreaks scare in countries like China.

According to a report published in Business Tech, the move to establish the South African Shipping Company (SASCO) falls under the government's plans to reform the maritime sector.

SASCO will own and manage a fleet of vessels, along with closely working in the logistics sector, the report added.

Apart from the fleet, SASCO will also own and operate goods clearance, stevedoring, warehousing, and other infrastructure services.

The report further noted that SASCO will be financed by South Africa's Industrial Development Fund, as well as money appropriated by the parliament.

Meanwhile, Maritime Executive reported that SASCO will be launched as early as 2023.

According to the Department of Transport, meetings will be conducted this month with stakeholders to explore their interest and commitment to the shipping company.

According to the bill, specific details on the financing are yet to be defined, with the financial implications of the establishment of the company not being compiled as of yet.