TPT engages with stakeholders in drive for efficiency

Against the background of the global recession, now more than ever South African shippers cannot afford the cost burden of an inefficient supply chain. It’s a fact of which Transnet Port Terminals CEO Tau Morwe is patently aware as the transport utility counts the costs of the crisis in dwindling import and export volumes. Morwe has made it clear that stakeholder engagement will be critical if it is to weather the stormy seas of the recessive climate ahead. “We recently met with the leadership of Anglo American and have been doing the same with other relevant stakeholders like the shipping lines, Toyota, Daimler Chrysler and the like,” Morwe told FTW. The organisation has recently completed its turnaround strategy. “The next five years will be characterised by a programme of growth – and that will be underpinned by improved efficiencies through integration between port and rail, optimisation of our capital expenditure plan and the deployment of skilled staff who operate in a safe environment,” said Morwe. “We have for some time lagged behind in terms of adequate infrastructure. “Five to six years ago we had a $100 congestion surcharge on containers moving through Durban, which was a huge a burden on the economy. “Through the corridor strategy we have improved our product both in terms of the port and rail systems to ensure that we offer a competitive service.” Key to this is the hub and spokes concept. “World Bank studies demonstrate the costefficiencies of hubbing. “If you look at the rest of the world, there are currently 25 hub ports around the world, mainly in South East Asia. Africa is the only region that doesn’t have a hub port.” Its introduction in South Africa would give cargo carriers some competitive capability in terms of reducing costs – but it would also boost the country’s seafaring status. “With the introduction of a hub we would also need connectivity. “For international players it would mean they would have access to world class terminal services and a reduced stay in the port which translates into greater efficiencies. In terms of the supply chain it would reduce costs,” he said. The key challenge now revolves around people, in Morwe’s view. “We have invested in infrastructure and equipment. We now have to ensure that people are up to date in terms of improving skills. “We must focus on planning in the ports and the key challenge is to ensure that government and ourselves are on the same page.”