Congestion surcharge and deduction of losses from port charges on the agenda
REACTING TO a demand from the major container shipping lines, Portnet chief executive Rob Childs has agreed to an urgent meeting at a venue in Durban, aimed at finding answers to what has been described as "unacceptable performances" by Portnet's South African container terminals.
The meeting was scheduled for Tuesday morning (June 9) and Childs has reportedly agreed to discussions on various issues regarding the strikes and go-slows that have been wreaking havoc with shipping schedules since April.
Shipping line representatives had earlier criticised the lack of response by senior Portnet management, and issued a statement saying that they did not believe that Portnet management and "senior persons in government" really understood the full impact of the disruptions on importers, exporters and the country's economy in general.
A number of proposals have been tabled by the shipping lines, aimed at acquiring compensation for losses running into hundreds of millions of rands. FTW understands that among these is the introduction of a congestion surcharge, while the even more serious threat of deducting losses from lines' port charges was also being discussed.
In the meantime, a further half-day strike by members of the marine staff at Durban last Friday was averted only at the last minute. Morning shifts at both Cape Town and Port Elizabeth were affected however, with workers downing tools for half-a-day at both those ports. A senior Portnet official at Port Elizabeth, speaking off the record, said that while it was all very well diverting ships to PE, people should remember that the port was also taking strain. He pointed out that PE only has two berths with four gantry cranes. "There is a limit to what we can accept - put two of the 'Great Whites' in at the same time and there will be no space left for anyone else." Six container ships were lying outside at that time.
Durban was reported to be working normally although it has an enormous backlog to catch up. This will take several weeks providing there are no further disruptions. A number of container and other vessels are lying in the outer anchorage waiting for a berth and most shipping lines are being affected.
The shipping lines have listed four demands to be met by Portnet in their meeting with Childs. These are:
- The lack of recognition of the major shipping lines as shareholders in Portnet. They say this was evidenced by the total lack of accessibility and communication from Childs during the past three months regarding what measures Portnet management was adopting to resolve their problems.
- Portnet management's inability to deal effectively with labour, which has resulted in numerous strikes and the more subtle go-slows. The example of the withdrawn R500 bonus being dragged out over 12 months was cited as one of the main causes for this.
- Management turnover and a lack of continuity in planning and operational performance was a major concern, which was being aggravated by delays in appointing suitable replacements.
The shipping lines gave notice that a concrete plan of action with Portnet on a number of issues was required. In addition to compensation for losses as a result of delays to shipping, action included the overcoming of low productivity in the ports, and the implementation of Phase 1 of the Durban expansion project, which Childs is reported to have placed on hold recently. Shipping lines are also looking for measures to limit the wind factor at Cape Town, a resolution of the initiative to allow private hauliers access to the terminals, and the introduction of service contracts between Portnet and shipping lines.
The shipping lines also expect the appointment of suitably qualified candidates in key vacant management posts.
To add fuel to their attack they have enlisted the help of their customers urging them to use every avenue to impress on Portnet management and government authorities their deep concern over their loss of competitiveness. "Unless you are successful, the introduction of a congestion surcharge will be inevitable," is the warning.
BY TERRY HUTSON
