From multi-porting to a hub port configuration: the South African container port system in transition

Abstract

This paper addresses the tension that exists between multi-porting and a hub configuration in the South African container port system. We apply a generalised cost model to two alternative network configurations: the actual situation of multi-porting and an alternative hub port configuration. The results demonstrate that South African import and export flows are likely to face small cost increases when the port system moves to a hub port configuration. However, from a ship operator's perspective, the hub configuration is more attractive given considerable cost reductions in marine charges, port dues and ship costs. The paper concludes by underlining Transnet's pivotal role in the attractiveness of the hub option and the need for a wider Sub-Saharan strategy in view of making the hub port concept work.