Car makers in the Eastern Cape have an unusual request – they want a bigger airport.
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Shipping problems both by air and sea are a threat to the country’s future as a global player in the automotive industry, the Made in South Africa conference in Port Elizabeth was told on Tuesday.
These will be eased by a new port and industrial park project scheduled to be commissioned close to PE at Coega next year.
To keep pace with other countries, particularly China, more improvements are needed said Ian Nichols, a director of General Motors SA.
“Customers now demand specification changes to new vehicles even as they roll down the assembly line,” he said. “We need to be able to ship parts very quickly and that means using air transport. We desperately need a bigger runway in this region to take larger cargo aircraft.”
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By GlobalDataCargo facilities at Johannesburg airport, he said, are overcrowded and inefficient leading to delays and ultimately production line stoppages.
“Our shipping ports have also been hampered in the past by labour problems, delays and security issues. We cannot afford to operate like this,” added Nicholls.
“GM has 32 car factories around the world and we have to compete with all of them for contracts. Our parent does not give us business out of sympathy.”
The car industry in South Africa has to address a number of issues to stay competitive and grow. These include labour issues – particularly sick absenteeism – productivity, quality, cost and encouraging high technology suppliers.
His thoughts were echoed by Volkswagen’s William Stephens who said the biggest threat to SA’s vehicle industry export business was coming from China.
“China has been growing at a massive rate and while it currently services its domestic market, the first export contracts are being announced. These will grow in the future. To compete we will have to focus on what we do best and give attention to cost, quality and value.”
