The Durban Chamber of Commerce said Transnet’s 18 to 24-month turnaround plan “will kill the country’s economy”.
The Chamber put forward a proposal from shipping companies to the government to buy the equipment needed to fix the challenges facing Transnet over the long term and recoup their investment through relaxed surcharges.
Transnet board chairperson Andile Sangqu, speaking at a media briefing on Monday, said that they were working on a number of measures to turn the situation around but cautioned that this would take some time as the lead times for some of the equipment could be up to two years.
“The problem of port congestion is a complex one and it is something that was due to happen at some point, as a result of many years of under-investment in equipment and its maintenance,” Sangqu said.
The Port of Durban is one of the busiest in Africa, but it is also one of the most congested with an exponential increase in delayed hours, according to the Chamber, ranging from 39 hours (January), to 96 hours (July), 194 hours (August) and 364 hours (September).
The South African Association of Freight Forwarders (SAAFF), in a statement this week, also spelt out the massive daily costs to shipping companies at the country’s ports – 96 vessels waiting at anchorage outside commercial ports, directly costing the economy R98 million a day in direct, sunken costs, at least R26m a day in indirect costs, and impeding at least R7 billion worth of goods from moving every day.
The Chamber also wants chambers and businesses, including the shipping lines, to be on the national logistics crisis committee, and an independent engineering consulting firm with strong project and programme management expertise to be appointed to run the equipment.
The Chamber’s CEO, Palesa Phili, said as organised business they were opposing the privatisation of the container terminal but had suggested the solution that shipping companies buy the equipment needed and Transnet charge less for the docking of ships at port.
Phili said the delay at the port of Durban meant an estimated 35 000 containers were stuck at sea.
“As organised business, we believe this delay is due to lack of equipment maintenance, failure to buy equipment and run the straddles, stacks and tugs effectively.
“Furthermore, the lack of maintenance and ageing equipment continues to disturb port operations,” Phili said.
Phili said the exponential increase in delayed hours was unacceptable as businesses had to bear the brunt of these delays.
“The delays are costing the shipping companies an estimated R7m, resulting in job losses and leading to 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 around Transnet.”
She said the ports could not wait 18 to 24 months for a turnaround but needed immediate solutions.
Transnet did not respond to requests for comment on the Chamber’s statement. SAAFF said there had been an improvement in Cape Town and Port Elizabeth in recent days but Durban terminals remained severely delayed at around nine days.
It said the congestion at ports was the reason why shipping lines were choosing to ship cargo to and from South Africa via the hub port of Port Louis in Mauritius.
The Mercury