The closure of the Lebombo border post between South Africa and Mozambique, and the resultant disruption to cargo moving through the Maputo Port, is costing the South African economy an estimated R10 million per day, says Gavin Kelly, chief executive officer of the Road Freight Association.
On Thursday, the Border Management Authority temporarily closed the border crossing into Mozambique following a new wave of protests that broke out around Maputo.
"Direct losses to freight logistics is around R6 million, including damages to and loss of vehicles, injuries to drivers, the looting of loads and disruptions of import and exports," Kelly says.
He adds that companies lose business due to unfulfilled consignment loads and experience revenue losses due to the necessity of deploying extra security.
There have so far been eight days of delays at the border crossing, with full closure over the last four days, according to Kelly.
Hundreds of trucks carrying cargo, most notably chrome, have been stranded. South Africa is the world's biggest chrome exporter.
Minerals Council South Africa says in an emailed response to Moneyweb: "The closure of the Lebombo border post used by trucks transporting South African minerals to the Maputo harbour for export is of particular concern to the chrome industry."
Of the 17,7 million tonnes of chrome ore and concentrate that South Africa exported in 2023 (an all-time high), 9,4 million, or 53 percent, was exported through Maputo.
"Importantly, by far the majority of that 9,4 million was trucked by road to Maputo."
According to the Minerals Council, there are a few weeks of chrome inventory at the Maputo harbour.
"However, Grindrod has stopped port operations, which further constrains flows of chrome to overseas customers.
A prolonged border closure of weeks rather than days will have a serious impact on South African chrome exports," it says.
Besides the closure of Lebombo, the Port of Maputo also halted activity on Thursday and logistics group Grindrod subsequently announced on Sens that it would temporarily suspend its port and terminal operations in Maputo and Matola. - Moneyweb
