Lack of ships flying SA flag costs billions

2012-03-19 22:36

Durban - South Africa's failure to have any ships flying the country's flag was costing the country about R37bn a year, Transport Minister Sibusiso Ndebele said on Monday.

He said in Durban that of the 200 million tons of freight that left South African ports in 2009, not a single ton was carried by a ship bearing the South African flag.

"Sadly today, our country cannot claim to have prioritised this [maritime] sector," he said.

"All of the 200 million tons of our trade are carried by foreign-flagged ships, costing the South African economy in excess of R37bn per year," said Ndebele.

Maritime law dictates that ships have to be registered with a country and fly that country's flag.

However, many ship owners fly a flag of convenience. A flag of convenience ship is one that flies the flag of a country other than the country of ownership.

Cheap registration fees, low or no taxes and freedom to employ cheap labour are, according to the International Transport Workers Federation, the motivating factors behind a ship owner's decision to fly flags of convenience.

Countries that have cheap registration fees are Panama, Liberia and the Marshall Islands.

Ndebele said that 80% of the country's trade was by sea and therefore it was a necessity to prioritise the maritime industry.

Ndebele said South Africa was in the top 15 shipping countries in the world when it came to the tonnage that was transported to and from its ports.

Read more on:    sibusiso ndebele  |  transport  |  maritime
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
83 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
SPONSORED CONTENT
4 real car inventions that seem like science fiction

Vehicle design and tech have come so far so fast, that what seemed impossible has become reality. These are some of the fun and exciting innovations that have found their way into vehicle tech.

/News
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!
Horoscopes
Aquarius
Aquarius

There is a restless need for action and you may go overboard and fill your day with too many things in the need to be recognised...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.