{"id":853452,"date":"2026-03-12T10:30:00","date_gmt":"2026-03-12T08:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=853452"},"modified":"2026-03-12T10:21:14","modified_gmt":"2026-03-12T08:21:14","slug":"bad-news-for-two-small-towns-carrying-south-africas-economy","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/853452\/bad-news-for-two-small-towns-carrying-south-africas-economy\/","title":{"rendered":"Two small towns carrying South Africa\u2019s economy under threat"},"content":{"rendered":"\n<p>The conflict in the Middle East has caused major shipping and port delays, which is bad news for two of South Africa\u2019s towns whose ports are vital hubs in the country\u2019s logistics network and economy.<\/p>\n\n\n\n<p>The escalating conflict in the Middle East is creating major disruptions for global shipping, and the ripple effects are already being felt in South Africa.<\/p>\n\n\n\n<p>In an interview with <a href=\"https:\/\/iono.fm\/e\/1653685\" target=\"_blank\" rel=\"noreferrer noopener\">Moneyweb Radio<\/a>, Paul Vos, regional MD of the Chartered Institute of Procurement and Supply, said the conflict had already begun disrupting global trade routes and pushing up the cost of moving goods around the world.<\/p>\n\n\n\n<p>\u201cOur supply chains have already been disrupted, and we hear various reports of a number of ships that are currently stuck or have been delayed,\u201d he said.&nbsp;<\/p>\n\n\n\n<p>Vos explained that the disruption is closely tied to instability in the Red Sea\u2014one of the world\u2019s busiest maritime corridors connecting Asia and Europe via the Suez Canal.&nbsp;<\/p>\n\n\n\n<p>Many vessels passing through the region are experiencing delays or congestion, which is slowing the movement of goods destined for markets around the world, including South Africa.<\/p>\n\n\n\n<p>Vos said the issue is not only about ships rerouting around Africa. A significant number of vessels are already caught in delays in the region itself.<\/p>\n\n\n\n<p>Vos explained that several additional charges have already been introduced by shipping companies as they try to manage rising risks.<\/p>\n\n\n\n<p>\u201cThose war-risk insurance premiums have already been applied, there will be fuel surcharges, and container price hikes have already been implemented,\u201d he said.&nbsp;<\/p>\n\n\n\n<p>These rising costs and delays are expected to ripple through South Africa\u2019s economy. Businesses are likely to face tighter working capital cycles as they deal with longer delivery times and higher logistics costs.<\/p>\n\n\n\n<p>\u201cIt\u2019s going to have an impact on working capital cycles that will tighten as the delays and the cost escalations hit simultaneously,\u201d said Vos.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Critical South African ports risk delays  <\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Richards-Bay.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Richards-Bay-1024x576.jpg\" alt=\"\" class=\"wp-image-841204\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Richards-Bay-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Richards-Bay-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Richards-Bay-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Richards-Bay.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Several sectors in South Africa are particularly exposed to the disruption. Vos said retailers that depend on seasonal or time-sensitive imports could face stock shortages as shipments are delayed.<\/p>\n\n\n\n<p>Manufacturers are also at risk. South Africa\u2019s automotive industry relies on carefully coordinated supply chains for specialised components.<\/p>\n\n\n\n<p>Electronics supply chains could face additional pressure, while industries such as petrochemicals, mining, pharmaceuticals and fast-moving consumer goods are also vulnerable to delays.<\/p>\n\n\n\n<p>\u201cSo this is a disruption that is multifaceted across multiple sectors of the economy,\u201d he said.&nbsp;<\/p>\n\n\n\n<p>These disruptions pose a particular threat to two small towns whose ports play an outsized role in South Africa\u2019s export economy.&nbsp;<\/p>\n\n\n\n<p>These are Richards Bay and Saldanha Bay. Together, these ports handle more than 80% of South Africa\u2019s cargo.<\/p>\n\n\n\n<p>Data from Statistics South Africa shows that Richards Bay moves about 44.3% of the country\u2019s cargo, while Saldanha Bay handles roughly 38%.<\/p>\n\n\n\n<p>By comparison, the ports of Durban and Cape Town\u2014once the country\u2019s busiest\u2014now account for only about 8.3% of cargo combined, largely due to operational inefficiencies and persistent delays.<\/p>\n\n\n\n<p>Richards Bay and Saldanha Bay are crucial because they handle bulk commodities for South Africa\u2019s mining industry and generate vital foreign revenue.<\/p>\n\n\n\n<p>Richards Bay, located in KwaZulu-Natal, is home to the Richards Bay Coal Terminal\u2014the largest coal export facility in Africa.<\/p>\n\n\n\n<p>Opened in 1976 with a capacity of 12 million tonnes per year, it has expanded dramatically over the decades and can now handle up to 91 million tonnes annually.<\/p>\n\n\n\n<p>The terminal features a 2.2-kilometre quay, six berths, four shiploaders and storage capacity of 8.2 million tonnes.<\/p>\n\n\n\n<p>It is widely recognised for its efficiency and once set a world record by exporting more than 409,000 tonnes of coal in a single day.<\/p>\n\n\n\n<p>On the Western Cape coast, Saldanha Bay is one of the deepest natural ports in the world and the largest deep-water port in the Southern Hemisphere.<\/p>\n\n\n\n<p>It was also opened in 1976 and originally built to export iron ore from mines in the Northern Cape.<\/p>\n\n\n\n<p>According to Transnet, more than 1.1 billion tonnes of iron ore have been shipped from Saldanha since the port began operating, with roughly 25 vessels loaded each month.<\/p>\n\n\n\n<p>Together, these ports support a large share of South Africa\u2019s mining exports, which underpin more than 240,000 jobs and generate crucial tax revenue and foreign currency earnings for the country.<\/p>\n\n\n\n<p>Looking ahead, Vos warned that the biggest risk is not just the current disruption but the possibility that the conflict could drag on for months or even years.<\/p>\n\n\n\n<p>\u201cOur concern is really around the protracted nature of this conflict and the medium- to long-term impact it could have on the region,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The conflict in the Middle East has caused major shipping and port delays, which is bad news for two of South Africa\u2019s towns whose ports are vital hubs in the country\u2019s logistics network and economy.<\/p>\n","protected":false},"author":92,"featured_media":841203,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[24974,23938,23939,853],"class_list":["post-853452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-chartered-institute-of-procurement-and-supply","tag-richards-bay","tag-saldanha-bay","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=853452"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853452\/revisions"}],"predecessor-version":[{"id":853720,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853452\/revisions\/853720"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/841203"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=853452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=853452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=853452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}