Transnet partially lifts force majeure

This means that the business industry will somewhat heave a sigh of relief as millions of rand worth of cargo will now be able to be moved after being stuck at port terminals for days on end.

This means that the business industry will somewhat heave a sigh of relief as millions of rand worth of cargo will now be able to be moved after being stuck at port terminals for days on end.

Published Oct 21, 2022

Share

Transnet has lifted the force majeure at all its automotive, bulk and multi-purpose terminals with immediate effect today following the end of the two-week strike by its workers.

However, the force majeure declared for the container terminals will remain in place, for now, as Transnet picks up the pace of recovery.

This means that the business industry will somewhat heave a sigh of relief as millions of rand worth of cargo will now be able to be moved after being stuck at port terminals for days on end.

Transnet, today, said that its operating division, Transnet Port Terminals (TPT), had informed its customers that it had lifted the force majeure declared in the automotive, bulk and multi-purpose terminals.

The State-owned freight and logistics company declared a force majeure on 6 October after employees embarked on industrial action, demanding up to 13% salary increases.

This severely impacted the company’s ability to deliver on contractual obligations as thousands of workers downed tools until a wage agreement was signed on Monday.

Transnet signed a three-year wage agreement with the majority United National Transport Union (Untu) on Monday.

However, the South African Transport and Allied Workers Union (Satawu), which is also a recognised union at Transnet, has not signed the agreement, though it called off its strike action on Wednesday.

Transnet spokesperson Ayanda Shezi said TPT’s entire workforce reported for duty, with effect from yesterday, and the backlogs in the container terminals were being cleared as part of the recovery plans underway.

“TPT is implementing recovery plans to stabilise operational performance and efficiencies across its terminals, following the industrial action by employees, which ended earlier this week,” Shezi said.

“The extent of the backlogs in the container terminals, and the resultant impact to operations, mean that the force majeure declared for the container terminals will remain in place, with TPT anticipating that it will be ready to uplift it by 31 October 2022.”

BUSINESS REPORT

Now watch: