Namibian Ports Authority CEO Andrew Kanime shared his concern about the lack of collaboration between the industry and regulatory bodies as well as the lack of necessary infrastructure to help Namibia become the logistics hub it wants to be.
Namport is a state-owned enterprise, established as the national ports authority of Namibia, managing principally the ports of Walvis Bay and Lüderitz.
“We are significantly dependent upon the collaboration of especially legislative authorities and regulatory bodies for us to ensure we attract cargo to the two ports. One of the key issues that we see at the moment is that there are perhaps certain legislations that are enacted or introduced without necessarily consulting the industry; some of these legislations have become a hindrance or a bottleneck in terms of us enabling us to maybe expand on this production base,” Kanime yesterday said during the first-ever State of Business Address (SoBA), organised by the Namibia Chamber of Commerce and Industry (NCCI).
Kanime added it is of no help working in silos, as there are attractive solutions that can be put in place to ensure a win-win solution.
Rail infrastructure
Furthermore, the CEO stated there is a need to accelerate the investment in the rail infrastructure to ensure that the capacity at the ports can be optimally utilised to service not only Namibia but also the rest of the region.
He said the ports play a critical role in the domestic economy, especially in terms of linking not only Namibia but the region to the rest of the international market economic hubs and global economic centres.
“But for us to be able to optimally utilise that capacity, there is a need for us to ensure that transportation infrastructure is in place. But on the rail side, we are unfortunately not connected, especially to our key markets of Botswana and Zambia – and you know that especially we play a critical role in terms of re-exporting some of the key minerals that originate from these markets,” said the concerned CEO.
Kanime insisted that the absence of a real connection between these two countries will significantly contribute to the cost of moving cargo through Namibia.
TransNamib this year revealed that the state of the country’s railway infrastructure hampers operations, resulting in bottlenecks.
TransNamib spokesperson Abigail Raubenheimer added the national rail service operator faces the dual challenge of ageing and deteriorating railway infrastructure and outdated rolling stock.
The company, therefore, needs a whopping N$30 billion investment, which is almost half the national budget.
“As the owner of the rail infrastructure, the government will need to at least invest N$30 billion into the infrastructure to get it on par with the Southern African Development Community requirements,” she stated at the time.
Namport finance
According to the Namport 2022 integrated annual report, Namport’s revenue increased by 10.94% to N$1.234 billion from N$1.112 billion in 2021 and generated an operating profit of N$374 million (2021: N$121 million).
Total cargo handled for the year under review increased by 6% to 6 567 370 tonnes.
General cargo and overall container volumes reflected modest increases of 9% and 8%, respectively.
The increase in general cargo was due to increased commodities imports, containerised volumes and the continued flow of goods to and from the hinterland.
– mndjavera@nepc.com.na