South Africa’s commercial ports handled an average of 6 710 containers per day last week compared to the previous week’s 7 836, representing a significant decrease of 14.36% in the daily average, a Cargo Movement Update has found.
An executive summary of the update compiled by Business Unity SA and the South African Association of Freight Forwarders, said: “Port operations in the last week were characterised primarily by adverse weather conditions, equipment breakdowns and shortages, and internal congestion.”
In Cape Town more than 24 operating hours were lost due to strong wind.
At the Port of Durban, where congestion and nagging equipment failure have led to severe congestion, more than 60 000 TEUs were stuck at outer anchorage on October 31.
As has been indicated by various stakeholders in the recent past, the speed of equipment repair and parts availability remains a serious concern in Durban.
As a result, vessels waiting for weeks to offload at the port has become the norm.
According to the Busa/Saaff update: “By the end of the week, Crane 3 at GCT (Grindrod Container Terminal) was still with the technical team undergoing hoist rope repairs and should return to service sometime over the weekend.”
Cargo processing was also exacerbated by intermittent cable theft on the rail network over the previous weekend, causing some delays, the update said.
Busa and Saaff remarked that pressure is mounting on the state-owned logistics utility, Transnet, to improve performance, especially given comments made by finance minister Enoch Godongwana in last week’s Medium-Term Budget Policy Statement.
“The Minister highlighted that the underperformance of rail in South Africa is estimated to have cost up to 5% of GDP and caused significant losses in the minerals sector alone.”
Referring to the Freight Logistics Roadmap, a presidency initiative to place the country on a trajectory towards improved multi-modal cargo movement, Busa and Saaff said: “The Treasury is working with Transnet to ensure it meets its debt obligations but has stated that Transnet won't receive bailouts until the government is satisfied that the Roadmap is being adhered to.
“Transnet's financial state has been strained, and the government aims to address these issues to improve logistics efficiency.
“However, as often mentioned, Transnet – although a critical player – is not solely accountable for the smooth functioning of the extended logistics industry. This responsibility lies on all users, operators, and logistics providers in the country.
“The ongoing port congestion must be resolved, as the reality of vessel bypasses – and the $200/ TEU congestion charge implemented by Maersk this week, followed shortly after that by MSC – further inhibits the South African economy from growing at desired levels.”
In conclusion, the update said: “South Africa must get its trade, transport, and logistics network in order, as it is directly involved in 60% of the country's economy.”
