Annual collective congestion loss runs to millions ‘NPA must be excised from Transnet’

THE 15 MAJOR container lines calling at South African harbours have suffered an estimated collective annual loss of US$223million as a result of congestion and time delays, says Tony Norton, chairman of the National Port User’s Forum. As an example, a line operating seven vessels each calling an average of 7.44 times per annum, faces the costs on a delay of 20 hours per vessel amounting to an overall $14 865 000, said. “This is, of course, for only one line. There are 26 container lines that call at South Africa. If we assume that only the 15 are affected as much by the example given, the overall figure is a conservative total loss by the lines. This only deals with container traffic, and does not take into account delays in the breakbulk and bulk trades,” he said. “The lines contend that they have in the main borne the brunt of losses due to the delays caused by port inefficiencies and, apart from the congestion surcharge, have not passed the same on to customers by way of increased freight rates.” This, he said, is the leading reason why industry, together with other players, including the Department of Transport, has been working for 14 years to have the National Ports Authority (NPA) excised from Transnet. “There is no restriction in the Bill in its current form to prevent Transnet, as the holding company of the NPA, from using the profits of that company to cross-subsidise its other business.”