Supply chains competing with supply chains

Supply chains are competing with supply chains in the global logistics game – a concept of which Transnet Port Terminals is patently aware. “In today’s globalised village we know that it’s supply chains that compete, so if we adopt a supply chain view and encourage collaboration amongst players within the chain, it enables South Africa’s supply chain to become globally competitive,” says Mervin Chetty, recently appointed GM for the Natal corridor. But every link in the supply chain has a role to play, says Chetty. “Interfaces between supply chain players are critical – it’s not only about investing in ports and rail but also enabling other parties, like those in the private sector, to equally invest in skills development, capacity creation and productivity and efficiency improvements.” TPT’s five-year plan involves an investment of R11.2-billion. A significant amount of that investment is geared towards cranes and equipment, and is clearly positioned for the container and bulk terminals. “While several companies are pulling back on investments due to the global recession, we’re taking a country perspective which means creating capacity ahead of demand,” says Chetty. “We may have to delay some investments, but we certainly won’t be cancelling them.” And these investments will improve global competitiveness in several ways, in his view. “First off they’ll reduce the cost of doing business in South Africa by reducing transport costs.” By way of example, a vessel that currently takes two or three days to turn around could be turned around in two days with improvements to productivity and efficiency, says Chetty. “That means a one-day saving for the shipping line, creating competitive advantage. “There’s a huge opportunity for us as South Africans, and more especially South Africa Inc – and while we don’t have the major trade flows, we’re certainly well positioned at the epicentre of the continent to promote the hub and spokes concept and attract a lot more trade to South Africa.”