"The implementation of this new Bill will directly impact thousands of jobs and would further cause constraints to the Durban port, which has recently been stricken by its own congestion issues," says Penny Henley, logistics manager at Blue Strata, South Africa's only integrated end-to-end import and working capital specialist.
Closure of the City Deep inland port, which is the largest in Africa and the fifth-largest in the world, would result in severe disruption and further escalate the cost of doing business in the country, which is one of the biggest impediments to the growth of import and export businesses in South Africa. Furthermore, this would have a direct impact on the profit margins of struggling small businesses in these industries.
"We would also likely experience a logistical nightmare with increased vessel waiting times, cargo and road truck delays that would result in extended berthing times as well as increased charges for storage," says Henley.
Henley adds that the Bill further requires that all imported goods should be cleared and released at the first point of entry. "Despite the massive job losses that may be suffered by clearing and forwarding agents in Johannesburg, we would also likely experience capacity issues and inefficiencies due to the Durban port being highly congested."
"While we wait for a decision on whether the Customs Control Bill will be passed or not, we hope that government will present the logistics industry with a comprehensive strategy on how the challenges associated with the closure of the City Deep inland port will be dealt with," concludes Henley.
