Namibian Ports facing stiff competition

The port of Lobito has grown in recent years and, as an alternative gateway for landlocked countries such as the Democratic Republic of the Congo (DRC) and Zambia, has attracted cargo traditionally routed through the Port of Walvis Bay.

Further augmenting the port’s growing stature is the 30-year concession that was signed at the end of 2022 for rail services and logistical support for the 1 290-kilometer Lobito Corridor. The corridor connects Lobito port to Luau in Angola’s east, close to the DRC border, and offers the shortest route for copper and cobalt from the DRC and Zambia. It also offers increased capacity for the transit of liquids and gases.

The corridor is being lined up for some US$250 million in financing from the United States’ Development Finance Corporation. The United States has also mooted an expansion of the Lobito corridor to the Tanzanian coast, and if the investment extends to the Tanzanian coast, it would further dent Walvis Bay’s competitiveness for hinterland cargo.

Lobito’s strategic location and infrastructure improvements could potentially divert trade flows away from Walvis Bay. Furthermore, changes in trade agreements or tariffs between Angola, Zambia, and the DRC could impact cargo routing decisions, favouring Lobito over Walvis Bay. Lobito’s increasing prominence may shape market perceptions, making it a more attractive option for cargo owners and shipping lines.

To mitigate these competitive challenges, management is committed to strategic investments in infrastructure and equipment within Namibia's ports. To this effect, Namport recognised the significance of enhancing the capacity of the entrance channel to handle larger vessels and dredging as one of the key considerations for the New Container Terminal concessioning project.

Source: Namport Integrated Annual Report 2023