As tensions between port users and Transnet Port Terminals (TPT) management in Durban reached near breaking point recently, Pravin Gordhan, the minister of public enterprises, and Popo Molefe, Transnet’s board chairman, were forced to step in to calm the situation. Industry was informed at the meeting that TPT chief executive Nosipho Sithole had been suspended. According to port stakeholders who spoke to FTW on condition of anonymity, at the heart of the issue were legal interdicts that had been brought against several transporting companies whose drivers had blockaded the port in protest against ongoing congestion and delays. The transporters believe they cannot be prosecuted for the independent action of their drivers. “The situation was dire, with Sithole walking out of a meeting in July, claiming that transporters had been negotiating with her in bad faith. There was a complete breakdown in communication and it was getting very ugly,” said a source who had attended the various meetings. He said ongoing congestion and delays at the Durban Container Terminal had become unbearable and Sithole had failed to deliver on her promise of increased operational equipment and efficiency to address the delays. “In May truck drivers blockaded the port and Sithole took legal action against the transport companies – which were, in fact, also victims of the blockade – rather than the truckers themselves.” Transporters demanded that TPT management rescind the interdicts, pay their legal fees and send out an official apology. A letter co-edited by several organisations was sent to Transnet National Ports Authority (TNPA) urging the organisation to step in as per the Ports Act and take action against TPT. “The dysfunctionality at the port had become very worrying,” said a source. “Some shipping lines had even raised concern that their principals could close their services to South Africa, given the severe losses that were being incurred on this route.” It is estimated that a trip of two and a half weeks now takes an average of at least seven weeks at the cost of the shipping lines, while trucks are on average delayed by anything from 12 to 18 hours at a time. On August 8, Molefe and Gordhan called a meeting in Durban attended by shipping lines, representatives of the Harbour Carriers’ Association, the South African Association of Freight Forwarders (Saaff), trucking companies and other port stakeholders. FTW is in possession of the minutes of the meeting in which Gordhan requested to participate in order to learn more about the constraints and the dire performance of TPT. Gordhan said that Transnet had been severely affacted by corruption and that they were working hard to fix and reconfigure the company in order to meet its mandate. Transnet board members attending said that while the current board had taken over a company with a legacy of the past, they were “embarrassed that the poor operations structure had continued under our watch”. They also raised concern that a culture had developed at state-owned enterprises where Transnet expected customers to accept the poor performance, having no other alternative for their business, and that maintenance at the port had been neglected in achieving higher profits. Molatwane Likhethe, Transnet’s spokesperson, acknowledged that Molefe and Gordhan had met with the South African Association of Ship Operators and Agents (Saasoa) and Saaff. “Transnet has since, in writing, tabled remedial action to address the concerns. The remedial action will address issues such as leadership, manning levels, maintenance of the existing fleet of equipment and the acquisition of additional equipment.” Likhethe said a decision had been taken to suspend Sithole, and Michelle Phillips had been appointed as acting chief executive at TPT while Velile Dube had been appointed acting chief operating officer. “They stepped in just in time,” said another source, who told FTW that the industry was relieved at Molefe and Gordhan’s executive intervention. This was reiterated by Likhethe, who told FTW that they were working with industry to urgently improve port productivity
TPT tension in Port of Durban required executive intervention
13 Sep 2019 - by Liesl Venter
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FTW 13 September 2019
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