QUESTION 2(10 MARKS)

The new container terminal at the Namibian Port of Walvis Bay, built between 2014 and 2019, gives the country a high-end port facility. The terminal, commissioned in August 2019, is now fully operational, according to a report by the African Development Bank published on 3 September 2020. The expansion has steered Walvis Bay towards becoming a logistics hub for southern Africa that aims to meet the growing demand for freight while promoting new maritime access to serve the Southern Africa Development Community (SADC). Overall, the project has fully achieved its goals," the report said, increasing the terminal's capacity from 355,000 TEUs (20-foot equivalent unit) to 750,000 TEUs yearly. It has also reduced vessel waiting time to less than 8 hours and cut container transit time from 14.5 days to 9.5 days. The report notes that the Walvis Bay Port service demand has increased by about 8% following the commissioning of the new terminal, the report notes. Cargo volumes, revenues, and income from other services (maritime, port, berth and light dues, and other storage and handling fees) are expected to increase by at least 8% in 2020 and 2021. After that, growth should reach 5% yearly, the report projects. Source: African Development Bank Group (2020).

In light of the above development, analyse the potential impacts of the increased port capacity on the transportation system.