Durban Chamber ‘deeply concerned’ about SA’s main port

The Durban Chamber of Commerce and Industry NPC [non-profit company] is deeply concerned about the recent delays at the Port of Durban, leading to an estimated 35 000 containers stuck at sea.

Read: SA port gridlock sees ships pile up

We believe this delay is due to a lack of equipment maintenance and a failure to buy equipment and effectively run the straddles [freight-carrying vehicles], stacks and tugs. Furthermore, the lack of maintenance and ageing equipment continues to disturb port operations.

The Port of Durban is one of the busiest in Africa but also one of the most congested. In 2017, it had about 112 straddles operating. Since then, the situation has deteriorated.

Read:
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We have closely monitored the situation since the beginning of the year and have seen an exponential increase in delayed hours. In January, the delay was 39 hours, July 96 hours, August 194 hours, and September 364 hours.

This is unacceptable, especially as businesses must bear the brunt of these delays.

The backlog is costing shipping companies millions, resulting in job losses and a negative economic impact across crucial economic value chains and sectors. Our members in the clothing and textile sector, automotive sector, and producers of major appliances have been stuck for the past 12 days. We need tangible reforms to turn Transnet around.

Read:
Business’s fraying patience with Transnet
SA’s citrus exports flat as infrastructure woes sour season

Continued delays are resulting in added lead times and delaying the supply of essential goods and services. As we approach the festive season, businesses – especially small, medium, and micro enterprises – depend on their stock to serve customers.

Furthermore, cargo arriving during this time of the year is sensitive; failure to land the goods on time in stores will result in retailers carrying headstock, leading to unplanned losses.

Recommendations

As organised business, we:

• Request that chambers and businesses, including the shipping lines, be included in the National Logistics Crisis Committee. We believe this will allow the private sector to present tangible solutions. Merely using desktop solutions will not work.
• Are opposing the privatisation of the container terminal. Shipping lines have made an offer to the government to buy the equipment needed to fix Transnet over the long term and recoup their investment through relaxed surcharges.
• Request the appointment of an independent engineering consulting firm with strong project and programme management expertise to run the equipment.

We do not have the leisure of fixing the port within 18 to 24 months; we need an immediate solution.

We need private-sector partnerships. Shipping lines and Transnet must enter a joint agreement, allowing the lines to buy the necessary equipment and rebuild infrastructure.

Read: Transnet selects Philippines-headquartered port operator for Durban Pier 2

Through this investment, the private sector must be given an opportunity to recoup its investment through the relaxation of tariffs.

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Palesa Phili is CEO of the Durban Chamber of Commerce and Industry NPC.