Project cargo specialists slam red tape

More and more project cargo experts are looking to bypass Durban as the costs of bureaucracy and inefficiency take their toll. That much was clear from last week’s Breakbulk Africa conference in Cape Town where industry called on the South African government to simplify and harmonise its abnormal permit system in all provinces and create a dedicated law enforcement department to escort cargo. “It is getting to the point where we will manufacture outside the country and bring the cargo in through a third country rather than transport from Durban to the north of the country as the risk is just too high and the delays too long to move it through South Africa,” said Les Dodds, logistics manager for Amec. He said delays played a major role in the high overland transporting costs in South Africa. “There are so many uncontrolled costs when one is moving project cargo but the cost of delays due to inefficiency is starting to add up. From the process to get the right permits in each province to handing over to the various traffic authorities escorting the heavy vehicles moving the equipment, it is just too expensive. It makes more economic sense to ship to one of the neighbouring countries and shorten the journey through South Africa as far as possible.” A recent incident where it took 28 days to move a piece of equipment from Durban to the north illustrates the point. “When the equipment arrived in Durban the permit for the transportation had not been issued as there was only one person in the entire province who could grant the necessary permit. When it was finally on the road there was a holdup at every municipal boundary where local law enforcement escorts had to be met,” he said. “The cost of this was significant because the entire project had to wait for its arrival.” Lars Greiner, materials management HOD for WorleyParsons TWP, said the continued delays were taking their toll, with costs skyrocketing. He said it was essential to find solutions that would see cargo move more efficiently. According to Henry Viljoen, manager of Sarens South Africa, the country undoubtedly boasts the best infrastructure in sub- Saharan Africa, but often it takes longer to move cargo here than anywhere else because of the red tape. “Here a minor project can be delayed for weeks. Already we are anticipating major problems with a project that we are working on. We have eight wind turbines scheduled to arrive within the next few months and we know that we will be held up when it comes to getting the escorts for these to the final destination,” he said. “To move a wind turbine of this size we are going to need about 12 law enforcement officials in Saldanha to get it out onto the road. The question arises – does the town of Saldanha have 12 officers to spare for a project? Delays are a reality before the ship has even arrived.”