1. Namport within the context of a logistics hub
26 March 2019
House of Democracy
Windhoek

2. Preferred logistics hub policy
AGENDA
Preferred logistics hub policy
Provide landlocked SADC states an opportunity to import and export via Namibia
Infrastructure investments
The reality
A costly policy?
Namport a crucial link

3. Vessel visits are declining since 2003

4. Namport becomes less competitive

5. Total cargo handled peaked in 2012

6. The maximum was never reached with the existing container terminal

7. Trans-shipment peaked in 2012 with 1.536 million tons

8. The assumptions for the investment in the new container terminal were unrealistic

9. Profitability is under pressure due to a decline in volumes and the investment in the new container terminal

10. The challenges Namport is facing within the logistics supply chain
Port cargo handling charges are high
Geographic location not strategic and long distances to markets
Small domestic market
Port not strategically located close to major trade lanes
Investment policies and taxation not favourable
The port of Lobito is gaining strategic importance and Durban is more competitive
The burden of the loans for the new container terminal on the future cash-flow of Namport and a weaker balance sheet regarding the debt to equity ratio
Walvis Bay is a feeder port and not a hub port
A hub port handles at least 2 million containers and the 60/40 principle should apply and not the 10/90

11. Recommendations
The preferred logistics hub policy should be reassessed
Cabinet submissions must be professional and outline the risks of major investments
Major capital projects should be halted (e.g. N$ 5.5 billion railway line to Kransberg) if not accompanied by a professional cost/benefit analysis
The governance of Namport should be improved by appointing experts in logistics
The port tariffs should be compared regionally to determine the competitiveness of Walvis Bay and Lüderitz
Lower tariffs for industrialisation and exports should be considered (e.g. charcoal)