Why African ports could miss out on huge windfall

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Why African ports could miss out on huge windfall

11:47 CAT | 21 Dec 2023

FILE - The Red Sea is a major route for cargo ships [File photo: Getty]

Piracy and congestion could cause some African ports to miss out on a potential windfall as commercial ships seek a new route around the continent.

Yemen’s Houthi rebels have recently been attacking cargo ships in the Red Sea, vowing they will stop at nothing until Israel stops attacking Gaza.

The stand-off is disrupting one of the world’s busiest and wealthiest waterways.

On average, goods worth $1tn (£790bn) are shipped via the Red Sea and account for 12% of global trade, according to shipping newspaper Lloyds List.

Some of this wealth will now be rerouted southwards, around the Cape of Good Hope in South Africa.

Along this new journey vessels will need to stop for supplies and refuel – but this will not be easy.

Piracy threats could force some ships to bypass ports in Lagos, Nigeria and Mombasa, Kenya.

On Tuesday, a merchant ship sailing off Somalia was hijacked by unknown raiders, according to Spain’s defence ministry. This fuelled fears that pirates were returning to the Gulf of Aden and Red Sea waters.

The Somali government described this as an isolated case, adding that it has been in control of piracy since 2019.

In South Africa, the new diversion around the Cape of Good Hope received a mixed reaction.

Paul Graham, a South African based governance analyst said on X (formerly Twitter) that the new route has the potential to be a huge money-maker for the country but its ports are not up to the job.

At the end of November, ports in the country recorded severe congestion with reports of up to 96 vessels waiting to unload.

Alan Winde, head of South Africa’s Western Cape province, issued instructions for the ports to prepare for an influx of ships.

He also encouraged sailors to avoid sitting in the queue at the Suez and instead replenish in Cape Town and enjoy “the world’s most beautiful city”.

Only a few of Africa’s ports can handle large volumes of cargo and container traffic, according to Marine Insight.

Source: BBC