The Sunday News
GOVERNMENT is exploring a Public-Private-Partnership route in the setting up of a $3,4 million Walvis Bay facility as it has emerged that Zimbabwe was the only country lagging behind in using the facility provided by the Namibian government five years ago.
Five years ago, the Namibian government offered its landlocked neighbours, Zimbabwe, Botswana and Zambia the chance to set up dry port facilities at Walvis Bay.
To date only the Zambian facility is operational while Botswana has started to develop its own with Zimbabwe still to undertake any meaningful work save for carrying out civil works at the site.
Namibia added that the respective countries would be responsible for the construction costs.
The project was allocated $1 million in the 2014 National Budget but to date treasury has not yet released the funding.
“The construction of civil works at the site are done to about 12 percent and an amount of about $3,5 million is required to complete the civil works.
“Government is now exploring the possibility of partnering private sector in the construction of the Walvis Bay Dry Port facility in line with the Public-Private-Partnership arrangement as espoused under Zimbabwe Agenda for Sustainable Socio-Economic Transformation,” the Ministry of Transport and Infrastructural Development said in a statement.
The project will open a strategic gateway to the sea for Zimbabwe hence the Ministry’s current efforts.
Economists, however, said the delay in the setting up of the port was delaying huge economic benefits.
Zimbabwe National Chamber of Commerce chief economist Mr Kipson Gundani said businesses trading through Walvis Bay stood to benefit as its port charges were cheaper than those of Maputo and Durban while it was also closer to the country.
“Government has called for the private sector to set up the port suggesting that it is quite cost effective to put up the infrastructure thus one needs to come up with a feasibility study of the project.
“However, it does make business sense if there are huge volumes of traffic but for someone to pool resources into setting up infrastructure they should be guaranteed of having positive returns,” said Mr Gundani.
Another economist, Mr Bongani Ngwenya said: “It can be a necessary infrastructure if you are looking at the fact that we are a landlocked country intending to trade offshore.”
He, however, said Government should pursue setting up the facility if it anticipates increase in trade.
“It’s quite a positive idea because it creates an access point for incoming and outgoing goods. However, putting up the infrastructure should depend on the increase of volumes at the other ports which warrants Government to solve this problem.
“I hope Government is anticipating an increase in trade because putting up such infrastructure can be costly and serve no purpose at all. We have to take note that in terms of exports we are not exporting much though we are importing large volumes,” Mr Ngwenya said.
