[imagesource: CC0 Public Domain / Hippopx]

When I hear the words ‘state-owned’ I can’t help but shudder.

Eskom, Transnet, the SA Post Office, PRASA, SAA, Denel – the list goes on and it’s not a pretty one.

State-owned enterprises (SOEs) have become corrupt feeding grounds that have sunk many essential services and plunged the country into what is basically uninterrupted load shedding, so do we really need a state-owned shipping company?

According to our Department of Transport, which recently released the first draft of the South African Shipping Company Bill, 2022, we do.

BusinessTech reports:

South Africa is mostly reliant on foreign governments and companies for essential imports and exports. As a result, a national shipping company could shield the country from supply chain disruptions, said the department…

According to the bill, the South African Shipping Company (SASCO) will be under the authority of a minister chosen by the president, who would, in turn, appoint a board that then designates a CEO.

SASCO will be funded by what is labelled an ‘Industrial Development Fund’ along with money appropriated by Parliament. You can guess where that money is going to come from.

We already have private shipping companies like Berry & Donaldson, which boast close to 60 years of experience in assisting importers and exporters in dealing with shipping lines, airlines, and customs-related processes.

What can the government possibly bring to the table that can rival that level of service?

The shipping company is set to own and manage a fleet of vessels, either bought or built, that will work alongside and aid logistics services and infrastructure.

The plans in the Bill point to it being labelled the ‘preferred national shipping carrier’.

SAA was also labelled our national carrier and look how that’s working out. President Cyril Ramaphosa said last week that the government has pumped R40 billion into SAA, R16,4 billion of which has come in the past three years.

I certainly won’t be alone in the belief that we need fewer SOEs, rather than additional ones, to move forward.

[source:bustech]