South African shipping and ship finance : constraints and prospects of container shipping joint venture

Abstract

ENGLISH SUMMARY: The changes taking place in the maritime trade provide broad and complex areas of interrelationships that can be identified as the main reason leading to the need for a joint venture South African container industry. The world economics and commercial developments, intense competition, low freight rates, high operational cost, liquidations, loss of market share and trade necessitated the investigation of market strategies that will provide the South African container industry with a sustainable comparative advantages on the traditional North/South route. This study addresses the benefits of a joint venture between Safmarine and a South African Black Operator. The benefit of the joint venture is dual. Firstly, the operational benefits are realising economies of scale, more access to capital finance, stronger bargaining power and acquisition of a bigger market share. Secondly, there are benefits to the South African Balance of Payments because of retained foreign exchange spending on freight rates, the gaining of foreign exchange on freight earnings, the benefits associated with the flying of the South African flag, the skills transfer and maintenance of management skills in South Africa, and the opportunity to create black economic empowerment. With the expected growth and recovery of an export-led economy the latent benefits of a South African operator could have been realised if such a joint venture could have come about. However, Safmarine Container Line was sold to a foreign shipowner, i.e. AP Moller. Although, most of the operational benefits can be realised with such a buy-out, South Africa has lost the opportunity to become a significant player in the· shipping trade with ancillary benefits.

AFRIKAANSE OPSOMMING: Die veranderinge wat tans plaasvind in die maritieme handel veroorsaak wye en komplekse areas van onderlingsooreenkomste wat geidentifiseer kan word as die hoofrede vir die behoefte om 'n gesanientlike ooreenkoms in die Suid Afrikaanse houerskip industrie. Die wereld ekonomiese en kommersiele ontwikkelinge, hewige kompetisie, lae vragtariewe, hoe bed ryfskoste , likwidasies, verlies aan markaandeel en handel noodsaak die ondersoek na nuwe vergelykbare mark strategiee wat die Suid Afrikaanse houerskip industrie sal verseker van 'n langdurige kompeterende voordeel in die tradisionele Noord/Suid markte sal verseker. Hierdie studie spreek die voordele van 'n gesametlike ooreenkoms tusseo Safmarine, en 'n Suid Afrikaanse Swart Operateur aan, Die voordeel is tweeledig. Eerstens, die bedryfsvoordele deurdat skaalvoordele gerealiseer word, meer toegang tot kapitale finansiering verkry kan word, sterker mededingende mag en die verkryging van 'n groter markaandeel. Tweedens, is daar voordele vir die Suid Afrikaanse Betalingsbalans deurdie voorkoming van uitvloei van buitelandse val uta aan vraggeld en versekering, die inkomste uit vragverdienste, die verdien van buitelandse valuta aan vraggeld, die voordele wat gepaardgaan met die vaar van die Suid Afrikaanse vlag, die oordrag van vaardigheid en die behoud van bestuursvermoe in Suid Afrika, en die geleentheid am swart ekonomiese vol mag te skep. Met die verwagte ekonomiess groei en herstel van 'n uitvoer-gebasseerde ekonomie kon die latente voordeel van 'n Suid Afrikaanse operateur verwesentlik word indien so 'n gesamentlike ooreenkoms plaas gevind het Nieteenstaande, Safmarine Container Line was verkoop aan 'n buitelandse skeepseienaar, i.e. AP. Moller. Alhoewel, meeste van die bedryfsvoordele verwesentlik word as gevolg van die transaksie, het Suid Afrika die geleentbeid verloor om 'n merkwaardige mededinger in die seehandel te word met die aanverwante voordele wat dit bied.