International Ships Opted For Namibia Over South Africa

Walvis Bay has a deep-water harbor, allowing it to accommodate larger vessels. International shipping companies sailing around the Cape of G...

Walvis Bay has a deep-water harbor, allowing it to accommodate larger vessels.

International shipping companies sailing around the Cape of Good Hope to avoid Houthi attacks on the Red Sea face tough choices over where to refuel and restock, as African ports struggle with red tape, congestion, ports with shallow waters, and poor infrastructure. Dozens of large vessels are rerouting around the southern tip of Africa, a longer route of 36 days traveling, to escape the attacks by Yemeni Houthis that have pushed up oil prices and freight rates.

International ships and oil tankers rerouting around Africa because of the Red Sea crisis tend to opted Walvis Bay and Port Louis in Mauritius over South Africa's major ports, including Port of Durban, one of Africa's largest in terms of container volumes handled daily, as well as Cape Town and Ngqura ports are among the worst performing globally, according to a World Bank report.

Why Namibia is the best alternative option

Major South African ports are impacted by several red-tapes including bureaucracy, therefore Namibian ports, particularly Walvis Bay port, emerge as favorable choices for refueling and restocking international shipping companies. The Namibian government has demonstrated commitment to the development and success waterway, providing policy frameworks, incentives, and support for ongoing infrastructure projects. 

Namibia’s US$5.4 billion investment in the transport logistical hub in Walvis Bay is considered the largest in the SADC region. Namibia has a unique opportunity to strategically leverage this surge in maritime activity for economic gain. 

The Red Sea crisis has turned into a blessing for Africa, particularly Namibia that experiencing an unexpected influx of maritime traffic.

One of the notable advantages of Walvis Bay is its deep-water harbor, allowing it to accommodate larger vessels with deeper drafts. Namibian ports are characterized by deep waters unlike those in South Africa. This feature makes it attractive for shipping lines and contributes to its competitiveness as a regional and international port.  Shipping companies, including Maersk, and Evergreen Marine are recognizing the advantages of refueling their ships at Walvis Bay. 

State bureaucracy concerns in South Africa, also contribute to Namibia's attractiveness. The detaining of bunkering vessels in Algoa Bay and suspensions pending audits for oil tankers belonging to the energy traders underscore the need for an alternative option and reliable port environment, which Namibia can offer.

An opportunity to capitulate

To seize the opportunity presented by the rerouting of ships due to the Red Sea crisis, Namibia can implement strategic measures to maximize economic benefits, by anticipating a significant surge in fuel oil imports, creating a favorable environment for economic growth at the coastal town. The Red Sea crisis presents an opportunity for Namibia to boost foreign currency inflow and employment creation, as increased maritime traffic stimulates trade and economic development in the region. 

To fully capitalize on this opportunity, Namibia should focus on infrastructure investment, streamlined customs procedures, effective promotion and marketing, fostering trade partnerships, embracing technology, investing in skills development, prioritizing environmental sustainability, diversifying services, and engaging in collaborative efforts with stakeholders.