Major developments in logistics

Namibia's logistics sector is performing well but developments are needed if it is to reach maximum potential.

08 March 2019 | Transport

Although Namibia's logistics sector grew by 16.1% between 2007 and 2017, major developments are needed if the country is to become a logistics hub for SADC by 2025.

According to the Namibia State of Logistics Report 2018, these developments include the completion and the commissioning of the South Port Development Project at Walvis Bay.

Others are the completion of the North Port at Walvis Bay, the SADC Gateway Development, and a significant expansion of the country's railway network.

The completion of port and rail infrastructure at Lüderitz, the commencement of manganese exports through the port and the implementation of Namibia-Botswana cross-border railway cooperation are also needed.

According to the report Namibia's logistics costs declined by 11.4% to stand at 15.6% in relation to the GDP in 2017, having peaked at 17.6% in 2016.

It says Namibia's railway network transports approximately 1.2 billion tonne-kilometres of cargo annually. The railway system moved 1.58 million tonnes of various commodities (both bulk and containerised freight) in 2017.

“Owing to limited capacity the existing railway system can only manage to haul 15 to 20% of the total freight market.”

However, with improvements in volumes it could almost double within the next five years to 3 million tonnes, representing one third of the national freight traffic volumes, says the report.

That would require significantly increasing the percentage share of cargo for which rail has a distinct advantage, such as liquid bulk, dry bulk, containers, construction material and project cargo.

Secondly, capacity should be increased to absorb more traffic generated from seaports, cross-border traffic, mines, agricultural and manufacturing centres on the five TransNamib corridors.

“Thirdly, there is no trans-loading near the border (with South Africa). Only crew interchange takes place at the border crossing and the process takes maximum one hour. There is potential to link with other networks such as Botswana, Zambia, Angola, DR Congo and Zimbabwe.”

The Port of Walvis Bay, the main commercial port in Namibia, handled 93.1% of the total cargo transiting to and from neighbouring countries in 2017.

Zambia, Angola, the Democratic of Congo (DRC), Botswana and Zimbabwe are the main markets for transit by volume.

Zambia is the dominant market for transit cargo among these countries, accounting for 51.8% of all inbound transit cargo through the port in 2017, up from 47.9% in 2016.

Zambian exports, comprising mostly copper and wooden products, accounted for 85.7% of total outbound transit cargo by volume, up from 72.5% in 2016.

However, the report says there is slower growth and in most cases negative growth in the contribution of other countries' volume of imports and exports transiting through the port.

Surprisingly, volumes transported to and from Botswana are quite low. However, the situation could improve significantly following reports that Botswana Railways intends to establish dry ports to facilitate import and export activities within the SADC region.

Transit volumes to and from South Africa are also quite low. “However, given that South Africa has a number of seaports, this is not very surprising.”

The same rationale applies to Angola. Cargo flows to and from other countries, notably Congo (Brazzaville), Malawi, Tanzania, and Mozambique, are also generally quite low, and can thus be considered as “random flows”.

“The trade link to Zambia seems to be stable and in terms of volumes currently the most important one for Walvis Bay. Measures should be taken to secure and improve this level,” says the report.

The report says the capacity of the Port of Walvis Bay is expected to increase as a result of ongoing projects. Thus, greater attention is required in managing international logistics sustainably to ensure that Namibia could become a logistics hub for the SADC region by 2025.

Road freight accounted for more than 80% of goods transported in Namibia, including transit cargo. Of the three corridors connecting Walvis Bay with countries in SADC, the Walvis Bay-Ndola- Lubumbashi-Development Corridor is the busiest, followed by the Trans-Cunene and Trans-Kalahari corridors.


Similar News


Removed equipment threatens airlines

1 day - 19 July 2019 | Transport

Airlines operating in Namibia and those flying over Namibian airspace are up in arms after the Namibia Civil Aviation Authority (NCAA) withdrew all instrument approaches...

Giant load turns heads

2 days ago - 18 July 2019 | Transport

At an average speed of 25 kilometres per hour, a super-abnormal freight operation transporting a 175-tonne transformer from Johannesburg to a NamPower substation just outside...

Several airports unlicensed

1 week ago - 08 July 2019 | Transport

Several airports around the country under the management of the Namibia Airports Company (NAC) are operating without licences due to not meeting certain international requirements...

Air Nam's Frankfurt route not cancelled

1 week ago - 08 July 2019 | Transport

Namibia's national airline has dismissed reports that it's intercontinental flight to and from Frankfurt has been terminated.In a statement issued on Friday Air Namibia stated...

Air Nam Frankfurt schedule altered

2 weeks ago - 01 July 2019 | Transport

Air Namibia has announced a temporary schedule change to its Windhoek-Frankfurt route after one of their aircraft was damaged on Friday.The airline issued an apology...

Oompangela dhokuhupitha ehangano lyoAir Namibia

1 month - 14 June 2019 | Transport

Okomitiye yoKabinete yOmahangano gEpangelo otayi ulike ongundu yaatseyinawa, ndjoka tayi ka ulikwa kwiikwatelelwa komagwedhelepo opo ku tulwepo oompangela oompe dhopangeshefa dhoka tadhi ka hupitha ehangano...

Air Namibia rescue plan

1 month - 13 June 2019 | Transport

The Cabinet Committee on Public Enterprises is to appoint a consultancy with a “very specific terms of reference” to come up with a business model...

Westair shakes up aviation sector

1 month - 12 June 2019 | Transport

An announcement by privately owned Westair Aviation that it will start offering passenger flights from Windhoek to Oranjemund and Ondangwa could put further pressure on...

Air Namibia business model in spotlight

1 month - 11 June 2019 | Transport

The embattled Air Namibia has appointed consultants to come up with a more suitable business model that would allow it to break even in the...

Minister denies Westair connection

1 month - 11 June 2019 | Transport

Public enterprises minister Leon Jooste today said he has no interest in Westair Aviation as alleged in the local media. He also said denied that...

Latest News

Making employees feel at home...

1 day - 19 July 2019 | Business

Jonell Malan Human resource management is essentially the management of human resources (HR). It is a function in organisations designed to maximise employee performance in...

Fascinated by consumers

1 day - 19 July 2019 | Business

Evany van Wyk Rozanne van der Merwe comes across as being the epitome of female empowerment and friendliness. And this is exactly who she is....

No dazzling half-year for Namdeb

1 day - 19 July 2019 | Business

Jo-Maré DuddyNamdeb Holdings recorded its worst first half-year since 2016, with diamond production for the six months ended 30 June plummeting by nearly 22% compared...

Vulnerable and alone

1 day - 19 July 2019 | Social Issues

After an initial projection in 2008 that there would be 250 000 orphans and vulnerable children under the age of 15 by 2021, President Hage...

Zero cattle on offer at...

1 day - 19 July 2019 | Agriculture

The Oshana Regional Livestock Marketing Cooperative suspects that livestock prices have dropped so low because of the drought that farmers are no longer willing to...

Hope rekindled at Linus Shashipapo

1 day - 19 July 2019 | Education

Hope has been finally been rekindled that Linus Shashipapo Secondary School, which is currently in a sorry state, will be renovated.This comes after a tender...

Resilient and strong

1 day - 19 July 2019 | Business

Mariselle StofbergWith her tenacious attitude, collaborative nature and desire to always learn and draw from other people’s knowledge and experience, Leorine Waggie is clearly on...

Being unapologetically you

1 day - 19 July 2019 | Banking

Mariselle Stofberg Adriano Visagie went from playing in the dusty streets of Katutura to becoming a powerhouse in the entertainment industry and has created...

The great unwind and calls...

1 day - 19 July 2019 | Economics

Lazarus Shigwedha - Balance sheet recessions are the toughest to manage when they occur simultaneously with distressed debt conditions in the wider economy. During balance...

Load More