South Africa, long one of the strongest markets on the continent and a gateway for other countries to trade with others throughout sub-Saharan Africa needs to urgently improve its port infrastructure. This plays in the opportunity for PalletBiz to provide pallets to the various cargo ships and carriers.
Port inefficiency can be considered a non-tariff trade barrier, and it is within the power of governments to eliminate all manner of such barriers if they want to encourage more trade both into and out of ports.
Every day that the potential improvement of the country’s ports is hobbled, is yet another day that businesses and corporations will be less internationally competitive. The cost of shipping containers – and shipping – has been increasing markedly since the outbreak of the pandemic as global supply chains were interrupted.
It appears likely that costs will remain high for the foreseeable future. Henry Ren of Bloomberg writes that “Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers.”
To increase trade with the rest of Africa – and the world – the South African government should understand just how vital and efficient the rails and port networks are. Martin Humphreys of the World Bank explains that “The development of high-quality and efficient container port infrastructure is a key contributor to successful, export-led growth strategies both in developing and developed countries.”