Browsing by Author "Mvundura, Phillip Joseph"

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    South African shipping and ship finance : constraints and prospects of container shipping joint venture
    (Stellenbosch : Stellenbosch University, 1999-10) Mvundura, Phillip Joseph; Van Aswegen, Piet; Stellenbosch University. Faculty of Military Science. Dept. of Accounting & Auditing-Military Management-Economics.
    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 theĀ· shipping trade with ancillary benefits.