The Dube TradePort Cargo Terminal in Durban has said that challenges at the country’s ports have led to cargo throughput rising by 57% quarter-on-quarter from September to December 2023.
The country’s ports faced severe challenges in the latter part of last year including a large backlog of vessels waiting to enter the Durban harbour.
The backlog has since been significantly reduced.
The Dube Tradeport said air cargo operations, handled through the Dube Cargo Terminal at King Shaka International Airport, had been on the rise over the financial years 2022/2023 and 2023/2024.
Ricardo Isaac, Dube Cargo Terminal senior manager: Cargo Development and Operations, said the effects of congestion and slow-through-put capacity at South Africa’s major ports had created ripple effects across the supply chain.
“This significant increase in airfreight has been observed across various industries, from perishables to automotive, the latter traditionally being reliant on ocean freight. This emphasises the need of these industries to ensure uninterrupted production and timely delivery to export markets,” he said.
Malcolm Hartwell, Norton Rose Fulbright director and Master Mariner, said that Dube Tradeport has reported a significant spike in air freight volumes on import and exports.
“This is attributed in part to the massive suffering by importers and exporters through Durban port due to Transnet’s inefficiencies.
Everyone knows that an economy cannot exist without a cost effective and efficient logistics network that is relied on by every industry and company that makes, sells or buys anything.”
Hartwell added that the government was now making desperate attempts to apply short-term solutions to systemic problems.
“While this crisis has been developing, many of these companies have found their own solutions. These include moving their operations outside of South Africa, using neighbouring countries for imports and exports or, in the case of shipping lines, bypassing South Africa.”
Hartwell said that Transnet stated that they were addressing container congestion and delays and this was to be welcomed.
“Those in political and economic power are resisting the obvious solution which is to privatise as much of the port and railway network as possible. Until that is done, ports and railways will continue to harm South Africa’s economy and contribute to poverty and unemployment.”
Professor Irrshad Kaseeram, from the University of Zululand’s economics department, said this spike was expected because export contracts are carefully crafted to ensure timeous delivery.
“If contractual obligations are not fulfilled there are serious penalties, even termination of contracts. IMF slashed South Africa’s GDP growth rate to 0.8% because of rail road and harbour challenges. Firms desperate to meet contractual obligations are scurrying for airfreight alternatives to preserve contracts and ensure future ones at much higher cost than sea freight. We hope Transnet gets their act together to resolve these dreadful delays and backlogs.”
In a statement last Friday, Transnet said the Durban Container Terminal (DCT) Pier 2 has maintained single digit numbers of vessels at anchor, having increased operational teams to 11 per shift on the waterside handling.
“The combination of employee allocations and evacuation of import containers averaging 35 wagons daily, via rail to back-of-port facilities, has also enabled fluidity on the landside handling. The interventions have resulted in significant improvements and considerable decongestion of the terminal. At the height of the vessel backlog in November, DCT Pier 2 had 43 491 import containers waiting at anchor, and has since reduced that number to 1 738.”
In his State of the Nation Address, President Cyril Ramaphosa said to deal with severe inefficiencies in freight logistics, action was being taken to improve the ports and rail network.
“We have set out a clear roadmap to stabilise the performance of Transnet and reform our logistics system,” he said.
Cape Times