The South African government is taking significant steps to protect its domestic maritime sector through proposed cabotage legislation contained in the Merchant Shipping Bill of 2023. The bill, which was opened for public comment in September 2024 and extended through April 2025, introduces sweeping changes to the regulation of short-sea shipping along the country’s extensive coastline.
Cabotage regulations
A key provision of the bill states that “no ship, other than a South African-owned ship, is permitted to engage in coastwise traffic for the conveyance of goods between ports in South Africa.” This means that foreign-owned vessels will no longer be allowed to transport cargo between South African ports unless they are flagged or owned locally. The policy would effectively reserve domestic shipping routes for South African interests, marking a major shift in the country’s approach to maritime trade.
The legislation aligns South Africa with more than 90 countries around the world that have adopted similar cabotage regulations. Nations such as the United States, Indonesia, and Brazil have long enforced rules to protect their local shipping industries by restricting domestic maritime transport to national carriers. South Africa’s move reflects growing global interest in maritime sovereignty and economic security.
Officials argue that cabotage laws will strengthen the local shipping industry, create jobs, and ensure greater control over vital coastal logistics. The bill is also expected to pave the way for the state to invest in or establish national shipping enterprises, which would operate alongside existing public infrastructure to ensure continuity of coastal trade.
In the short term, however, the restriction on foreign ships could lead to increased use of road and rail transport for goods that would have otherwise moved by sea. With limited domestic maritime capacity currently in place, concerns have been raised about whether local operators can meet demand without causing logistical bottlenecks or higher freight costs. Nonetheless, supporters of the bill see this as an opportunity to accelerate investment in the maritime sector and integrate it more closely with national transport networks.
South Africa’s adoption of cabotage law represents more than just an economic shift it signals a strategic effort to assert greater control over its coastline and foster a self-sufficient maritime economy. Whether the move will result in long-term benefits or short-term challenges will depend largely on the speed of implementation and the support offered to local shipping stakeholders.