Despite struggling to operate existing maritime and aviation infrastructure, the South African government is moving forward with plans to establish a new state-owned shipping company.
The proposed South African Shipping Company (Sasco) has been in the pipeline since the Comprehensive Maritime Transport Policy was released in 2017. A pre-draft bill was published in 2022 under then-Transport Minister Fikile Mbalula, and stakeholder consultations only began three years later. The process remains slow, with final legislation unlikely before the early 2030s.
Yet, the Department of Transport is determined. It claims that a national carrier will allow South Africa to move a “significant targeted percentage” of its imports and exports using domestic vessels — a claim many experts reject.
A Familiar Past, Misplaced Narrative
Contrary to government assertions, South Africa did operate a national shipping line, Safmarine, for over 50 years before selling it to Maersk in 1999. That acquisition allowed Safmarine to expand significantly under private ownership. Maersk eventually absorbed the brand completely in 2020.
The Development Bank of Southern Africa (DBSA) is now supporting the Sasco initiative, raising concerns that billions of public funds could eventually be used to establish a fleet — despite minimal justification for its necessity or viability.
Expert Concerns Over Viability
Transport economist Dr Joachim Vermooten highlights that international shipping is a highly competitive network industry, dominated by global players with vast economies of scale. “With just a few ships, you can’t gain economic leverage,” he said. “You’ll end up with higher shipping rates and uncompetitive operations.”
He also noted that South Africa lacks sufficient shipping routes to support coastal operations. “Our land transport system is efficient, and our coastline doesn’t offer the kind of traffic density needed to make local shipping profitable.”
Cabotage and Market Impacts
The draft policy also proposes cabotage regulations — restricting domestic shipping routes to South African-owned vessels. This approach has largely been abandoned in the European Union due to its trade-limiting effects and inefficiency.
Implementing cabotage in South Africa could disrupt trade further, especially given the already strained performance of ports and logistics systems managed by Transnet.
A Costly Ambition
Experts warn that creating a state-owned fleet will cost billions and may not yield economic benefits. The concern is that the government, once committed to such initiatives, rarely reverses course — even in the face of financial or operational impracticality.
For now, the project continues to inch forward — without a single ship in sight, but with money already being spent on planning, structure, and consultations.
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