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Blog: 13 October 2016 (SA's contribution to the shipping industry)
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We take a different look at South Africa's port throughput (I.e how many twenty foot equivalent (TFE) containers are processed each year at South African ports) as well as South Africa's integration into international shipping (measured via 5 variables and published by UNCTAD).
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How many containers are South Africa ports processing
The graphic above shows the number of TFE containers processed around the world (on the left hand scale and blue bars) compared to the number of TFE containers processed in South Africa (on the right hand scale and yellow bars). It's clear that the trends in terms of world wide containers processed and processed in South Africa is very similar (except in 2012 when containers processed in South Africa declined yet world wide the number processed increased. South Africa makes up roughly 0.7% of the world's TFE containers processed. We are but a mere drop on the ocean when it comes to international trade.
The next graphic we will look at shows the liner shipping connectivity index (LSCI), which indicates a country's integration level into global liner shipping networks. UNCTAD states "Countries’ access to world markets depends largely on their transport connectivity, especially as regards regular shipping services for the import and export of manufactured goods. UNCTAD’s Liner Shipping Connectivity Index (LSCI) aims at capturing a country’s level of integration into global liner shipping networks." The current version of the LSCI is generated from five components: (a) the number of ships; (b) the total container-carrying capacity of those ships; (c) the maximum vessel size; (d) the number of services; and (e) the number of companies that deploy container ships on services from and to a country’s ports.
Below the LSCI of South Africa and the rest of their BRICS partners.
Below the LSCI of South Africa and the rest of their BRICS partners.
The values are expressed as an index level in 2004, where the most integrated country in 2004 will have an index level of 100. In this case China was the most integrated in 2004 and therefore their level = 100. The other countries values are expressed as index level compared to most integrated country (which in this case is China). I.e South Africa's level in 2004 of 23.13 shows that South Africa was 23.13% as integrated in global shipping networks as China. South Africa's value in 2016 of 37.1 shows that in 2016 South Africa was 37.1% as integrated in global shipping networks as China was in 2004.
From the graphic above it is clear that China is by far the most integrated country in the global shipping networks. All other BRICS countries are languishing far behind China but are very close to one another. South Africa is currently the least integrated of all the BRICS countries. But this is to be expected as the variables used to calculate the index will skew it to larger economies (I.e countries with more shipping companies, more ships, using more services etc). China is the 2nd biggest economy in the world, India 7th, Brazil 9th, Russia 12th and then South Africa coming in at 41st place.
When the LSCI of South Africa is compared to countries with similar sized economies we find the following:
When the LSCI of South Africa is compared to countries with similar sized economies we find the following:
Again South Africa seems to be lagging the other countries. With most similar sized economies being more integrated in global shipping than South Africa. Singapore, being one of the main shipping hubs in the world, is shown to be a lot more integrated than the rest of the similar sized economies. South Africa's integration levels have fallen since 2013, perhaps reflecting sluggish trade in our main exports (which are commodity products such as coal, iron ore, gold and platinum).