SA Shipowning Company: A Work In Progress

In November 2022 the Department of Transport (DoT) revealed its intention to create a state-owned company (SOC) to own and operate merchant ships when it released what it described as a pre-draft Bill for comment. The pre-Bill contemplated the registration of a new SOC that would purchase, own and operate cargo vessels in competition with existing shipping lines as well as take over the ownership and operation of other vessels like the Department of Environment's coastal patrol boats and the DoT's pollution control vessels. Our initial comments on the pre-Bill can be found here. It transpires that the DoT was using the pre-Bill in order to elicit comments from interested parties that would help them draft an amended new bill to be circulated for formal comment and for debate in Parliament. As set out in detail below that process is underway, but it seems unlikely that we will see a state-owned South African merchant fleet for several years to come.