SOUTH AFRICAN SHIPPERS' COUNCIL
Chairperson's report for 2010
Ladies and Gentlemen
South Africa GDP Growth Rate
The Gross Domestic Product (GDP) in South Africa expanded 2.60 percent in the third quarter of 2010 over the previous quarter. From 1993 until 2010, South Africa's average quarterly GDP Growth was 3.27 percent reaching an historical high of 7.60 percent in December of 1994 and a record low of -7.40 percent in March of 2009. South Africa has a two-tiered economy; one rivaling other developed countries and the other with only the most basic infrastructure. It is therefore a productive and industrialized economy that exhibits many characteristics associated with developing countries, including a division of labor between formal and informal sectors and an uneven distribution of wealth and income. The primary sector, based on manufacturing, services, mining, and agriculture, is well developed.
Country
South Africa
Interest Rate Growth Rate Inflation Rate Jobless Rate
5.50% 2.60% 3.70% 24.00%
The major point of concern Transnet, who were having major management challenges. This also showed in the performance of Transnet - Freight Rail & Port Terminals as the service in both these sectors remained at a low level. The labour strike in the ports caused major hick-ups and caused several companies to reduce or shutdown production. In some cases international markets were lost due to non-delivery of products.
The result of the poor rail service resulted in many rail friendly material being transported by road, presently approximately 90% plus on road. Without road South Africa will come to a standstill. Detoriation of the road infrastructure continues, resulting in damage to vehicles and more road accidents being experienced.
The South African Shippers Council revisited its objectives and came to the conclusion that it deviated from its original focus, which is focusing on strategic issues and became a bitching session on the performance of parastatals. A decision was taken to move away from the operational and focus on issues with a strategic impact.
• The Port Consultative Committees (PCC) kicked off in 2009 in Durban and other ports. The SASC secured a position in the PCC's and attended various meetings. In some cases it was not easy as the port management/government wanted to control the committees. The Durban PCC had two meetings already where port issues had to be addressed.
• It was previously reported that the SASC had various discussions with DPE, DTI and DoT. This came to a standstill as Minister Hogan did not really see and understand the principle of Collaboration. She was replaced and we hope to get a better understanding with the new Minister.
• The DoT started with the formulation of a Logistics Strategy. This came to a standstill due to personnel replacements. Again a concern is that the government departments believe they can get strategies going with out consultation of industry.
• The SASC attended numerous workshops on the logistics front to ensure we are becoming a k known body and to canvas support for the collaboration platform.
• In view of the views of government, to act independently, the SASC decided to get other entities such as RRA, CGCSA, the Transport Forum, NAAMSA and RFA to join forces with the SASC. A decision was also taken to invite other role players in the supply chain, such as service providers to join forces with the SASC. We believe through unity we will be able to make a difference.
• A big concern to us is the large amount of corruption happening in the public as well as private sector.
SASC Finances
Finances were tough but we succeeded to break even.
Future of SASC
We believe that through joining of forces with other entities we will succeed.
Thank you
Fanie Pretorius
Chairperson
