'Portnet"s actions are morally and commercially indefensible"

HAVING SPENT the past 25 years building a reputation in European markets as a supplier of quality product with impeccable service to match, Pietermaritzburg-based E&C Charcoal is staring down the barrel of a gun. It"s an anxious time for the company whose European customers have placed it on notice. "If we can"t deliver on schedule this year, they"ll have no option but to switch to alternative sources," managing director Charles Holley told FTW. And with those alternative sources based largely in Eastern Europe, the company faces a precarious future. "Service was always our strength," says Holley. "Without that leverage it makes sense for our customers to buy on their doorstep and avoid the continued inconvenience of costly delays." E&C Charcoal currently employs some 800 people. The annual value of its exports is estimated between R100-R200m. If the current delays continue, Holley believes that this could be cut by two thirds. "What the authorities seem to overlook is the fact that the world economy is not expanding. We live in a highly competitive marketplace and if we want to compete we need to play by first world rules." Just one of the additional costs of Portnet"s inefficiencies to this shipper is double handling because the cargo cannot be moved into containers immediately off the production line. "And now, to add insult to injury, the lines slap on a surcharge. "My customer is not interested in additional costs particularly in view of the poor service he"s getting. "What"s happening in the port is not force majeure. If I have a problem in the workplace, I can"t slap a surcharge on my customer. Similarly the same must apply to the lines. "At the moment we"re seeing all the signs of infrastructure that is not able to cope or to operate. If we can"t get it right soon, we must expect to go one way - rapidly. "If Portnet is responsible for the problem, they should be professional enough to admit to it. The fact that this is an argument is absurd in itself. They may argue about the degree of liability, but the fact is that the guilty party must accept the blame and pay. "If Portnet does refute its responsibility for what has happened, it is sending out the worst possible message to everyone who uses their services. "It is morally and commercial indefensible. They must accept responsibility in this regard."