Truckers slate plans to switch all scrap metal to PE

A government gazette notice
from the International Trade
Administration Commission
(Itac) that all waste or
scrap metal will have to be
exported via the port of Port
Elizabeth has met with a hail
of gunshot objections from
the road transport industry.
But all is not lost for these
irate truckers.
At least that’s according
to Foster Mohale, manager
of communication services
for Itac.
In this government notice
No R1211, dated December
11, 2015, Paragraph 8.16
said: “All waste or scrap
metal must be exported via
the port of Port Elizabeth,
being designated by Itac
as the sole port of export,
which will be reflected on
each Itac export permit as a
condition.”
In his response to an FTW
query on the subject, Mohale
made it clear that this notice
was intended to seek public
comments on these new
proposed amendments to
Itac’s existing amended
export control guidelines on
the exportation of ferrous
and non-ferrous waste and
scrap, dated September 12,
2014.
“Therefore,” Mohale said,
“the content of the notice
is neither a decision nor a
resolution by Itac, but a call for
comments on the proposals.”
Also, the due date for
submission of proposals has
been extended from
January 8 to February 5,
according to another
government notice, No R16.
And it’s only when
the proposals have been
received, and considered
by the commission, that
the final report will be
signed off by the chief
commissioner and published
in the government gazette
and also on the Itac website.
But adverse comments
have already started to flow
through to FTW, with an
initial broadside aimed at the
move to PE being released
by Carl Webb, MD of Project
Logistics Management and
adviser for both the Road
Freight Association (RFA)
and the SA Association of
Freight Forwarders (Saaff).
He told FTW that, at
present, almost all the scrap
steel – mostly originatingfrom the Reef ’s industrial
belt – was containerised, and
shipped out via Durban.
“None of it currently goes
through PE,” Webb said.
However, he noted that all
the Chinese shipping lines
that called at PE would be
delighted.
“They can offer much
better rates than anybody
else, and would be delighted
to pick up the large
quantities of scrap steel at
that port – mostly bound
to feed the Chinese steel
industry’s major demands for
this product.”
But while it may delight
them, it does anything but
delight the SA road transport
industry, which hauls scrap
steel to the coast on the
inland leg, according to
Webb.
“With all scrap steel in
future having to be shipped
via PE,” he said, “this
means that about 30% of
the return loads from the
Reef to Durban will have to
be re-routed to PE – from
where there are a limited
number of return loads to
the Reef.”
He also pointed out
that the distance was also
about 80% further – with
resultant cost increases.
“Of course this should
mean re-routing to rail. But
it cannot cope with existing
volumes, let alone the
increased volumes that will
arise.”
Webb was also adamant
that this would mean that
the Durban/Reef truckroute
costs would have to
be increased to allow for
vehicles returning empty.
“But the market will not
allow for any increases in
rates,” he added, “which in
turn could mean that we
stand to lose about 40%
of the Durban/Reef truck
fleet to bankruptcy, with
resultant unemployment.”
And Webb was equally
certain that, once again, the
volumes of cargo moving
from Durban to the Reef
were way too high for
Transnet Freight Rail (TFR)
to accommodate. “This
is particularly true as we
will shortly be importing
foodstuffs due to the
drought.”
His conclusion? “Once
again, a plan without any
consultation with the
industry – and which will
cost the country dearly.”