Transport Minister Sibusiso Ndebele says South Africa's failure to have any ships flying the country's flag is costing the country some R37b a year,
He says that of the 200 million tons of freight that left South African ports in 2009, not a single ton was carried by a
ship bearing the South African flag.
Cheap registration fees, low or no taxes and freedom to employ cheap labour are, according to the International Transport Workers Federation, the motivating factors behind a ship owner's decision to fly flags of convenience.
Countries that have cheap registration fees are Panama, Liberia and the Marshall Islands.
Ndebele said that 80% of the country's trade was by sea, making it one of the top 15 shipping countries in the world, and therefore it was a necessity to prioritise the maritime industry.
