Sinking Before It Sails

Why South Africa’s State Shipping Plan Feels Like a Ghost Ship

Bold ambitions, no fleet

The idea sounds like something pulled from the dusty pages of a 1980s government playbook: a national shipping company, state-owned and proudly carrying the flag across the seas. But it’s 2025, and South Africa can barely run its ports, let alone a fleet. Yet, here we are, years into the slow churn of policy and committee meetings, trying to give life to the South African Shipping Company (SASCO).

It all started in 2017, with a grand vision outlined in the Maritime Transport Policy. Since then, not much has moved, unless you count the molasses-slow pace of bureaucracy. The latest step? The formation of a steering committee. No ships yet, of course, but the meetings are certainly afloat.

The irony of empty harbours

It’s hard to ignore the irony. South Africa’s own navy is mostly shipless, the air force struggles to get planes in the air, and Transnet’s ports are ranked among the worst globally. So when the Department of Transport says it wants to “implement radical measures” to ensure South Africa controls a large portion of its import and export trade, it’s met with more eye-rolls than applause.

Transport economist Dr Joachim Vermooten puts it plainly: “You just can’t compete in global shipping with a handful of vessels.” The economics don’t support it, the infrastructure isn’t ready, and private sector reforms are already underway at Transnet to open space for investment, not more state control.

Didn’t we already do this?

Here’s the kicker: South Africa did have a state-owned shipping company. It was called Safmarine, and it operated for over half a century before being sold to global shipping giant Maersk in the 1990s. Under private ownership, the company expanded far beyond its state-run days. Maersk eventually absorbed Safmarine in 2020, ending the legacy but proving that shipping is best left to operators with scale.

So when government officials claim that South Africa’s trade has suffered since “we don’t have a national shipping line,” the logic doesn’t float. Trade relies on port efficiency, global access, and logistics, not ownership of ships.

Cabotage dreams, coastal reality

One element of the plan includes phasing in cabotage restrictions, where domestic port-to-port shipping would be reserved for South African-flagged vessels. This concept, imported from 16th-century France, is largely obsolete in the European Union and, frankly, ill-suited for South Africa’s geography.

“Our coastline just doesn’t support viable coastal routes,” says Vermooten. “Trucking is far more efficient here.” Restricting cargo movement in hopes of boosting a nascent fleet could actually backfire, driving up costs and strangling trade.

DBSA’s curious role

What raises more questions is the involvement of the Development Bank of Southern Africa (DBSA), one of the few functioning state-owned entities. It’s unclear whether DBSA is backing this plan because it believes in it or because the National Treasury simply can’t afford it.

Some critics suggest this is just the start of another slow-burning, money-gobbling state project. First, millions will be spent on consultants, committees, and structures. Then, when the fleet starts to take shape (even if it’s just a single ship), expect billions to follow. It’s a pattern we’ve seen before.

A ship with no course

Public reaction has ranged from confusion to sarcasm. Social media users joke about a ghost fleet and speculate which politically connected figures will end up on the board. Maritime professionals are more serious — they worry that this obsession with state control could deter real investment in the sector.

The Presidency, to its credit, appears to understand that shipping is a global network game. That’s why it’s inviting private players into port operations. But the Department of Transport seems determined to row in the opposite direction.

Fix the ports before building ships

South Africa has far more urgent maritime priorities: unclogging congested ports, attracting international logistics companies, and digitising border processes. Starting a shipping line from scratch, especially when we had one and sold it for good reason, is like buying a Ferrari when you can’t afford petrol.

It’s a romantic idea sailing under our own flag again, but nostalgia is not a substitute for sound economic policy.

{Source: Moneyweb}

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