The Namibia Port of Walvis Bay is about to make one of the most important strides in its modern history as it prepares for its container handling operations to come under private management from Terminal Investment Limited, aka TiL. This much-anticipated concession, expected to start during the second quarter of 2023, will now begin on October 1, 2024, after Namport and TiL conclude the details of their joint venture, Terminal Investment Namibia (TiN).
Privatizations of container handling at Walvis Bay were thus prompted by the need for private capital to develop infrastructure, improve efficiency, and boost volumes of cargo moved. The modernization of the port channel and the purchase of new equipment with advanced systems will put the TiN in a position where the port becomes competitive and capable of accommodating big vessels.
Although the cargo volume growth at the port has been more sluggish than anticipated, analysts in the industry note that the privatization and the improvement in infrastructure will spur activities. The acquisition of Bolloré Africa Logistics by MSC, further enhanced by the creation of Africa Global Logistics, is bound to give TiN the edge it needs in the broader market.
The concession agreement with TiN is foreseen to further solidify Namibia’s role as a vital logistics hub in Southern Africa. More shipping connectivity, more vessel traffic, and the capability for container handling will increase the volume of cargo handled and generally enhance the efficiency of the operations at the port.
This move follows the privatization of Walvis Bay’s container handling operations and the expansion of the Port of Lobito from its sister country, Angola. The Lobito Corridor also presents a very short transport route from the port into the Copper Belt and has, therefore, received considerable industrial interest.
As if to respond to this perceived incursion by the Lobito Corridor, the Walvis Bay Corridor Group has called for the development of a new North-West Corridor through Namibia. The road infrastructure to support this route is still under construction and faces delays.
This concession agreement represents a milestone between Namport and TiL for the Port of Walvis Bay as it leverages private capital and expertise to make the port more competitive, attracting cargo to contribute toward Namibia’s economic growth.
