New advisory board addresses Durban productivity concerns

É as NPA awaits consultants’ concessioning report Siyabonga Gama . . . ‘I am satisfied that Durban has turned the corner after the congestion problems of last year.’ Leonard Neill THE PORT of Durban and its shipping line customers have set up an advisory board to address, as a matter of urgency, poor port productivity. It’s an issue that needs to be driven by port management and is a major item on the agenda of the recently established Durban Container Interim Advisory Board, says National Ports Authority chief executive Siyabonga Gama. The board consists of representatives of shipping lines, NPA and SA Port Operations (Sapo). “Our concern is that congestion at the container terminal is not only the result of infrastructure problems. It is also due to some extent to productivity issues. To give an example, the cranes in Durban harbour are moving about 16 containers an hour, whereas they should be moving between 24 and 27. “The Sapo equipment replacement programme is moving ahead rapidly and a number of straddle cranes have arrived and are in use. “I am satisfied that Durban has turned the corner after the congestion problems of last year. The challenge now is to ensure that the harbour is able to cope with the next peak period, which traditionally takes place in May.” The threatened shipping lines’ surcharge last year of $75 on all cargo unless lengthy delays were reduced to 16 hours on average ahead of the end-of-year rush was not fully implemented, he said, and would have had a damaging effect on the economy. Exports would have been hit, with prices and inflation rocketing. But the threats had the effect of ringing the alarm bells in government circles which encouraged the speeding up of the plan to involve the private sector in the running of the port, he said. “We are now awaiting the results of the consortium, led by the Canadian firm CPCS Transcom, which was appointed to advise on the plan to concession port operations to the private sector. Its findings will advise us of the most effective mechanism for this move.” The consortium’s report, which includes projected traffic growth and the matter of how to deal with any potential job losses, is expected to be submitted to the cabinet shortly, following which an announcement is to be made on the privatisation plans for the Durban container terminal.