The Namibian government, SA business and foreign donor agencies are investing heavily to make the port of Walvis Bay more attractive as a trade conduit for Southern and Central Africa.
SA transport and logistics group Grindrod has bought the port's bulk-handling terminal. The Namibian government has budgeted N$1bn for port expansion. Sweden has allocated N$16m to improve safety and security on regional transport routes to Walvis Bay. Other foreign donors have expressed interest in funding a feasibility study on creating a direct rail link between Gauteng and the port.
Walvis Bay is a potentially attractive option for SA companies trading with Europe and the US. Sailing times are up to a week shorter than Durban's. But first you have to get your goods there. Rail is not an option: there are regional lines along parts of the route but it would require another 650 km of rail to fill the gaps.
There is a road, the Trans-Kalahari highway, which crosses Botswana, but it is remote, short of truck stops and prone to animals wandering across it, particularly at night. As a result, many transport companies continue to use the roundabout route through Upington.
But now Agnetha Mouton, business development officer for the Walvis Bay Corridor Group, says the Swedish International Development Agency has given N$16m (to be spent over four years) for safety projects, including the provision of secure stopovers for truck drivers. This will happen along all the road transport corridors: the Trans-Kalahari, the Trans-Cunene to Angola and the Trans-Caprivi to Zambia.
For the Trans-Kalahari, the Botswana government has begun an environmental impact assessment on the effects of fencing off the road in its territory. There are inter government talks on creating combined border posts that will save transporters going through two sets of customs and immigration. Border opening hours are being extended and work is under way to end weight discrepancies at weighbridges along the route.
Talks are also continuing on completing the direct Gauteng-Walvis Bay rail link - the cost of which is estimated at R10bn. Mouton says several foreign investors are interested in funding the initial feasibility study but "there are a number of issues that require clarification before agreement can be reached".
Another regional rail link is nearly finished. The extension of the Trans-Cunene line from Tsumeb to Oshikango, linking Walvis Bay with Angola, is due for completion by mid-2008.
At Walvis Bay, port officials have made it clear that they hope to attract a significant slice of business from over-burdened SA ports. Business development executive Jerome Mouton says the first chunk of the Namibian government's N$1bn upgrade programme - which will run to 2015 - is being spent on a technical and feasibility study, partly financed by the Development Bank of Southern Africa.
Plans include deepening and widening the harbour. As part of a strategy to build its ship and offshore oil rig repair business, the port recently decided to buy a second floating dock. It has also signed a dedicated port area agreement, granting Botswana its own piece of the harbour.
Beyond the immediate region, Mouton says Walvis Bay is increasing its role as a hub port for West Africa. Big liners load and unload at Walvis Bay, which provides a cargo trans-shipping service to other ports along the coast.
It is developments like these that persuaded Grindrod to buy the port's bulk-handling terminal. Executive director Dave Rennie says: "We believe there is considerable opportunity for us to expand our bulk operations at Walvis Bay."
Among the goods handled at the terminal are coal, copper concentrate and manganese. There is potential for other commodities including salt and sulphur. "We hope eventually to consolidate all bulk activities," says Rennie.
Since, unlike Maputo, Walvis Bay does not allow private concessions to run the port, any expansion of Grindrod's activities at this stage are likely to be in conjunction with the national ports authority, Namport.
Rennie adds: "We will invest further once we have certainty that we have long-term tenure at Walvis Bay."
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