South African businesses are
paying about 50% more on
their logistics costs than they
should be, simply because the
ports – particularly the Port
of Durban – are not operating
optimally, according to
director of Freightliner
and past chairman of the
Durban Harbour Carriers’
Association, Kevin Martin.
Speaking during a panel
discussion at the South
African Association of
Freight Forwarders’ (Saaff)
congress in Durban last week,
Martin noted that Transnet,
and government, should focus
on operational efficiencies
at the ports before looking
at other infrastructure
initiatives.
“If the ports were utilising
their space and equipment
properly, logistics costs would
be lower and congestion
would be far less of a
problem,” he said, pointing
out that while Transnet
had spent billions on new
equipment over the past seven
years, there had still been
a 75% drop in operational
efficiency compared to about
a decade ago.
“About ten years ago, the
Port of Durban was moving
about 24 loads per shift. Now
it’s down to about two. This
means there are far more
trucks in the port to pick
up loads at any given time,
causing the
congestion
problems and
increased
delays,” said
Martin.
According
to him
Transnet has,
on several
occasions,
bemoaned
its space
constraints
and outdated
equipment. However, Martin
highlighted several other
ports in emerging markets
that had less space and more
equipment
issues than
South Africa’s
ports but still
performed
better
operationally.
“They have to
do better with
the space and
equipment
they have at
their disposal,”
he said.
Forward
planning regarding
infrastructure investment
by Transnet had also been
woefully lacking, Martin
commented, highlighting the
fact that the port of Ngqura
hadn't been dug deep enough
and so was not equipped
to handle iron ore exports.
“Furthermore, when the
new car terminal became
operational at the Port of
Durban, it was already 100%
full. This indicates that it was
built for existing capacity but
not enough thought went into
projected growth and forecast
capacity,” he said.
INSERT
Transnet has to
do better with
the space and
equipment they have
at their disposal.
– Kevin Martin
