Transnet Unveils Strategic Plan to Ease South Africa’s Ports

Published by
Miriam Matoma

Transnet, the leading state-owned logistics company in South Africa, is intensifying efforts to combat the growing backlogs plaguing the Port of Durban and alleviate congestion issues at Richards Bay. The company’s recent statements shed light on various critical interventions aimed at rectifying these challenges and streamlining operations within the country’s vital ports.

Andile Sangqu, Chairperson of Transnet’s Board, acknowledged the complexity of the port congestion issue, attributing it to long-standing underinvestment in equipment and maintenance. “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 underinvestment in equipment and its maintenance,” Sangqu remarked.

He further elaborated on the ongoing measures to mitigate the situation, cautioning that the process might take substantial time due to lead times for essential equipment ranging from 12 to 18 months. Sangqu emphasized the team’s relentless efforts in procuring crucial equipment to align port facilities with global standards, highlighting the necessity of these upgrades.

Transnet detailed urgent interventions already underway to address slow turnaround times affecting container docking and offloading at the Port of Durban. Pier 2, with plans to increase container handling from 2,500 to 4,000 units per day in the next three months, and Pier 1, set to escalate from 1,200 to 1,500 containers daily, are focal points of these measures. Notably, adverse weather conditions and equipment challenges have contributed to reduced handling capacities in recent weeks.

Regarding future initiatives, Transnet outlined plans to acquire 16 rubber tyred gantry cranes for Pier 1 and four ship-to-shore cranes for South Quay at Pier 2 within specific time frames, aiming for significant enhancements by FY2025/26. Concurrently, refurbishment and maintenance efforts on critical port equipment at Piers 1 and 2 are anticipated to conclude by August 2024, optimizing asset utilization.

Michelle Phillips, the acting CEO of Transnet, underscored the collaborative efforts between port terminal management and industrial engineers to maximize berth performance. She projected that with the implementation of these measures, an estimated maximum of seven weeks is required to clear the backlog at Pier 1 and 15 weeks for Pier 2, signifying substantial improvements in container traffic flow through the port.

Phillips emphasized the critical need for stabilizing operations via short-term interventions while concurrently executing a broader Recovery Plan aimed at transforming Transnet’s overall operations. “The plan is exactly what is says it is: a plan to turnaround the business and ensure significant and sustainable improvements in all our operations, and in particular in rail and ports,” she affirmed.

In a concerted effort to address road congestion issues at the Port of Richards Bay, an emergency meeting involving stakeholders was convened. The meeting sought collaborative solutions to alleviate congestion and streamline logistical movements in the region, showcasing Transnet’s commitment to holistic problem-solving strategies.

As Transnet remains steadfast in its commitment to addressing the port challenges, these interventions signify a pivotal step towards enhancing South Africa’s logistical efficiency and bolstering its position in global trade.

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Miriam Matoma

Miriam is a freelance writer, she covers economics and government news for Rateweb. You can contact her on: Email: miriam@rateweb.co.za Twitter: @MatomaMiriam