PE scrap metal proposal ‘still under consideration’

The government proposal
gazetted in December
2015 that all scrap metal
be exported through Port
Elizabeth appears to be on a
back-burner.
All submissions on
the proposal had to
be submitted by early
February 2016. And it was
only when these had been
received and considered
by the commission that
the final report was due to
be signed off by the chief
commissioner and published
in the government gazette
and also on the International
Trade Administration
Commission (Itac) website.
But, according to Durban
sources, scrap metal is
still f lowing through that
city’s port – as it has done
historically.
The change of port idea
met with considerable
resistance.
The primary objection
was the pure cost of this
procedure, and the financial
pressures it would throw on
the country’s road transport
industry.
It was pointed out to
FTW that, at present,
almost all the scrap steel –
mostly originating from the
Reef ’s industrial belt – was
containerised and shipped
out via Durban, none of it
going through PE.
According to Carl Webb,
MD of Project Logistics
Management and adviser
for both the Road Freight
Association (RFA) and the
SA Association of Freight
Forwarders (Saaff), if this
idea of PE being designated
as the sole port of export by
Itac came about, it would
mean that an estimated 30%
of the return loads from the
Reef to Durban would have
to be re-routed to PE – from
where there are a limited
number of return loads to
the Reef. The distance is also
about 80% further – with
resultant cost increases.
And, to allow for all these
vehicles returning empty,
the logical move would be
for the Durban/Reef truckroute
costs to be increased.
But current market pressure
on rates would inhibit such
a move, and the result could
be further bankruptcies in
the trucking industry, he
added.
But so far, all is quiet on
the western front.
So FTW contacted Itac to
find out just what has been
happening.
After enquiries at
our behest by Itac
communications manager,
Thalukanyo Nangammbi,
he came up with the
official words. “Please
note that the proposed
amendments published for
public comments during
Dec 2015 have not been
implemented and are still
under consideration.”
FTW will try to dig
deeper.
CAPTION
Currently almost all scrap steel is containerised and shipped out via Durban.