Infrastructure development is fundamental to growth, and the development of the Port of Ngqura, just north of Port Elizabeth, presents a golden opportunity for South Africa to develop a dedicated transshipment hub.

Alan Jones, Safmarine's Africa region executive, said yesterday: "With Ngqura we have a golden opportunity to become an international hub as the harbour is equidistant between the Americas and the Far East."

Transshipment is the delivery of cargo to a port where it is collected by other vessels and then taken to its final destination.

Singapore handles 18 million twenty-foot equivalent units (teus) a year, of which only 3 million teus are destined for Singapore itself. The bulk is discharged at Singapore and then collected for delivery to another destination.

"Singapore earns millions of dollars for just moving containers across the quay. South Africa needs to get in there before another country, such as Mauritius, beats us to it. The country could earn a lot of money for handling cargo which is not destined for South Africa," Jones said.

Transnet, through the National Ports Authority and SA Port Operations, is developing the Port of Ngqura to include a container terminal that will serve as a transshipment hub. The terminal is scheduled to be operational in 2008.

Jones said infrastructure development was critical for growth. The government recognised this and had earmarked over R165 billion to develop power generation, ports, rail and pipelines.

But local growth is lagging other African and Asian countries, and Safmarine has expanded into China and India, where growth is 9.5 percent and 8 percent, respectively.

"We need to expand the focus on areas which have the biggest growth potential," Jones said.

Safmarine, which was bought by international shipping giant AP Moller-Maersk in 1999, operates a fleet of 50 vessels. Since January Safmarine has opened 13 new offices and increased its representation in eastern Europe and the Mediterranean, the Middle East, India, Vietnam and China.

Jones said Safmarine had seen a big increase in trade between China and South Africa. Locally the group focuses on fruit exports and the car sector.

Trade between the US and India has increased. The US is sourcing cotton products and automotive parts from India, while the US Gulf region has been supplying west Africa with equipment for its oil sector.

Safmarine is handling cocoa and timber exports from west Africa into Europe and the import of finished goods into west Africa. Trade from South America has grown and includes automotive parts into South Africa and reefer cargo into west Africa.

Jones said between 35 percent and 40 percent of the group's turnover was derived locally.

"Over the next five to 10 years South Africa's contribution as a percentage of group turnover will reduce. But South Africa's contribution will continue to grow and Safmarine intends for South Africa and Africa to remain its core."