Second State of Logistics Report launched

Second State of Logistics Report launched• Building block The second report contains fact-based metrics and knowledge about the sector and logistics activities. LEANDREA LOUW

WALVIS BAY



The annual Namibia State of Logistics Report for 2020 was launched in Walvis Bay on Thursday.

The first report was issued in 2018, serving as the benchmark for Namibian logistics activity.

The second report builds upon the work of the first report and includes a substantial section that investigates the impact of Covid-19 on the logistics sector.

Speaking at the launch, the deputy minister of works and transport, Veikko Nekundi, said Namibia had made great strides towards the development of transport infrastructure for the benefit of regional and international trade.

“This not only benefits the Namibian people, but also our neighbouring countries. Not only do we have good transport infrastructure at our disposal, we have a port with great potential to stimulate regional economic integration. The port of Walvis Bay is well equipped, reliable, safe, and efficient and is expanding rapidly. For the fifth consecutive year, Namibia has retained its position as the country with the best road network (number one) on the continent.”

Nekundi said the first report presented an overview of the economy during the past years, key trends of the logistics industry and the country's total logistics costs for the previous years. The report also laid out future and potential trends.

According to information contained in the first report, the logistics sector grew by an average of 16.1 % from 2007 to 2017.

The report also states that Namibia's logistics costs had declined 11.4% to stand at 15.6% in relation to GDP in 2017, having peaked at 17.6% in 2016 according to statistics provided by the Namibia Statistics Agency.

“This report is a crucial industry document as it provides fact-based metrics and knowledge about the sector and logistics activities which are essential to establish reliable benchmarks and advance a country's logistics performance. It allows the marketing, advertising and advancing of the logistics hub not only in the region, but internationally,” said the deputy minister.



Covid

According to the second report, prior to Covid, the industry was following Namibia's economic trajectory as measured by its GDP but was then hit by the pandemic.

“Like all other countries' industries, the logistics sector has suffered from reduced demand and been affected by delays as well as additional regulations but, although weakened, has survived.”

The minister lauded the logistics industry for its resilience.

“Essential supply chains have continued to operate, goods have been transported and delivered and trade has continued to take place, allowing businesses, communities and individuals to survive. All this was done under challenging circumstances, strict quarantine rules and more complicated border procedures.”

The work was commissioned by the Walvis Bay Corridor Group (WBCG) with the support of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the report was skilfully prepared by the Namibian-German Centre for Logistics (NGCL), Namibia University of Science and Technology (NUST).



New plan

Mbahupu Tjivikua, chief executive officer of the WBCG said that the process to develop the next strategic plan with positioning Namibia as the logistics hub being one of the strategic pillars, is on track.

“This is not only to the benefit of Namibia but to the hinterland and the world economy at large. Our neighbouring countries need us more than ever before. Our competitiveness in the global space will also be determined by our responsiveness to the Fourth Industrial Revolution.

“Are we ready as a nation? Only the fittest will survive, therefore we need to adapt or die.”

Tjivikua said that most businesses now need to start operating around the clock. “We need to embrace a new culture. Our borders and the relevant agencies need to provide services on a 24-hour basis.

“We need to beef up our service levels and start playing in the big leagues with Singapore, China and Dubai amongst others. A serious paradigm shift is required in our sector.”

He added that the next State of Logistics Report will investigate aspects of capacity building and skills, development of key infrastructure along trade routes such as trucks stops, provision of wellness services, the roles of women and SMEs in the transport and logistics sector, road safety, transport security and trade facilitation, and the transformation from transport corridors to economic development corridors.