In recent months, Namibia has emerged as a focal point for international oil exploration, particularly following significant discoveries in the Orange Basin. This newfound wealth has catalysed a remarkable transformation in the country’s logistics sector, with Port of Walvis Bay at the heart of this evolution. As global oil majors flock to the region, the logistics industry is experiencing a surge in activity that promises to reshape Namibia’s economic landscape.
The Port of Walvis Bay, Namibia’s primary maritime gateway, has seen a notable increase in vessel calls. Industry experts report a marked uptick in cargo and bulk break activity, indicating a burgeoning logistics market that is responding to the heightened demand for oil-related services. The port, strategically located along the Atlantic coast, is poised to become a critical hub for the oil and gas sector, facilitating the movement of equipment, supplies, and personnel.
While Namibia has been experiencing a consistent increase in interest, there has been a substantial increase in vessel approaches to the country this year, according to William Douni, senior trade manager at Breadbox Shipping Lines. Bulkbreak recently quoted him, observing that two ships were en route to the ports of Walvis Bay and Lüderitz. “We have already dispatched at least seven shipments to Namibia this year, and the process is not yet complete.” He stated, “We are now conducting more frequent calls to Namibia than we have ever done.”
Martin Louw of MACS Walvis Bay and David Groves of MACS Houston both report an increase in activity, which is consistent with this sentiment. “There have been significant improvements in the country,” stated Louw. “However, the genuine thrill is in the prospect of the next five to ten years, when we will begin to observe substantial volumes of traffic entering and exiting Namibia.”
According to Andrew Kanime, the chief executive officer of Namport, early-stage projects have primarily driven the increase in breakbulk volumes. “There were approximately 5.6 million metric tonnes of breakbulk cargo processed by Namport last year.” He stated that the country is capable of accommodating the current volumes due to the state-of-the-art infrastructure of our facilities, which includes mobile cranes, reach stackers, and designated storage areas.
“The Port of Walvis Bay is equipped with a specialised terminal that is designed to handle project cargo and breakbulk operations. It has a draft of 12.8 meters and sufficient yard space to accommodate the current volumes.”
Namibia’s prospects are encouraging, as per Bonnett. “The potential extends beyond oil and gas.” Mining has historically been a stronghold in Namibia, and it has recently experienced a substantial increase in activity. Namibia is one of the world’s largest uranium producers. Despite a decline in the sector, there has been a resurgence in investment in the upgrading and refurbishment of the uranium mines.
“In addition, the demand for energy minerals, including copper, lithium, and graphite, has generated significant interest in new mining opportunities. Despite Namibia’s mines being smaller than those in the Democratic Republic of the Congo, they still hold significant value.
Bonnett also emphasised the way in which the recent oil discoveries have thrust gas into the limelight. “The Kudu gas project, which has been in the pipeline for years, could be transformed by the associated gas discoveries in conjunction with the oil exploration discoveries, thereby establishing it as a substantial enough resource to warrant its development.”
Another reason for the logistic sector to monitor Namibia was its renewable energy potential, he stated. The country is rapidly advancing the Hyphen Hydrogen project, expected to generate 350,000 tonnes of renewable hydrogen annually with an investment volume of approximately US$10 billion. By the conclusion of this decade, there are discussions regarding the production and shipment of approximately two million tonnes of ammonia annually. Additionally, there has been an expansion of wind and solar installations throughout the nation.
DHL Global Forwarding Middle East & Africa’s director of industrial projects, Kapil Grover, also emphasised the need to modernise and expand Namibia’s port infrastructure to handle project cargo and breakbulk. “The limited infrastructure and capacity, which includes the investment in new handling equipment and the expansion of storage facilities, impede the efficient capacity of the ports.” Additionally, we are enhancing our terminals to better accommodate larger vessels and more intricate cargo categories.
“We prioritise the enhancement of our workforce training programmes to equip our staff adequately to manage the anticipated increase in breakbulk and project cargo.”
In order to capitalise on the anticipated growth, logistics companies are either entering or expanding their presence in Namibia. Gerald Bryan Povey, director for Africa at Blue Water Shipping, stated that the majority of companies are making strategic moves to establish a strong foundation in anticipation of the anticipated increase in activity.
“We are confident in our ability to expand into the country, as we have conducted our research.” “While it is still in the process of handling large cargo, it is causing bottlenecks,” he informed Breakbulk. Given the size of some of the planned projects, this could significantly complicate logistics operations when the oil and gas projects begin.
While Namibia is considered a relatively easy country to do business in, particularly within the African context, it still has complex regulatory frameworks and bureaucratic processes that often cause delays and increase costs. One such challenge is around visas, said Kevin Melnick, managing director of Pentagon Freight Southern Africa.
“Anyone who has visited the country more than three times a year cannot get a visa renewed. This can be a significant hurdle to overcome,” he reported. Grover added that local skills and the capabilities of local suppliers would also have to be improved to meet demand.
Melnick agreed that Namibian infrastructure needed attention. “The roads are experiencing strain due to the lack of rail availability.” Currently, equipment is sufficient to handle breakbulk and out-of-gauge cargo, but this will become a challenge as volumes increase. Warehousing and yard space outside of the ports must also be addressed.”
Most important, said Melnick, was investment and upgrades at the Port of Lüderitz. Louw reiterated this, saying a current limitation was that large projects could only be delivered into Walvis Bay, meaning goods must be trucked to Lüderitz, as rail solutions are often unreliable. “The Port of Lüderitz is limited to vessels with a length of less than 180 meters and an 8-meter draft,” Louws said. “There are plans to extend the current berth by an additional 500 meters, with completion targeted for 2026.”
Kanime acknowledged the infrastructure challenges and said Namport was actively working to address them. “We are implementing various initiatives to enhance our exploration stage; the outlook is very positive. Projects have a long way to go, but we have no doubt that Namibia will explode,” he said.
According to Kirsten Beeker, the company’s general manager in Namibia, the demand for logistics service providers with oil and gas expertise has tripled in recent months. “We’re seeing a significant increase in charter vessels transporting oil and gas equipment. More so, there are no signs of activity slowing down—only intensifying.”
Povey’s outlook for Namibia is similar to the trajectory experienced in Guyana, another oil and gas hotspot. “We have high hopes for Namibia, especially given its potential to move swiftly from exploration to production. Much more development is on the horizon here, and Namibia has all the elements for success.”
Additional reporting by Breakbulk