Durban - The Road Freight Association said that apart from a trickle of goods through some private terminals – the once bustling, vibrant ports of South Africa are like ghost towns.
This follows the ongoing strike by Transnet workers due to a wage dispute.
Gavin Kelly, CEO of the Road Freight Association, said that the dispute has seen the ports cease to operate (most reports are that there is very little to nothing happening as the strike intensifies and resolve of the workers deepens and hardens).
“Goods languish in port, on docked ships, in ships lying off the coast, in various manufacturing, processing and in origination plants across the country. Import and export logistics has virtually ground to a halt. Businesses that need time sensitive goods see their businesses disappearing in front of their very eyes as penalties, refusals and degradation of product begin to accrue. Some businesses will not recover from this. Others will simply choose a different country, other ports or other industries altogether.”
Kelly added that along the route between producer and port (export or import), thousands of trucks stand idle.
“Unable to move. Stuck in a jam between trying to deliver or collect, trying to earn revenue and continue to employ, operate and run a sustainable business.”
Kelly said that there are reports of some trucks already having stood still for three days already – others say four.
“There are already thousands of trucks that have stood with cargo (like maize and other agricultural products) for at least two days with nowhere to go. No chance of export. No chance of returning to move the next load.”
Kelly added that roughly 85% of all goods moved through and around the country have a road leg.
“Many of the trucks are now ‘caught’ in delays when returning to fetch the next load due for export/ import. With all the price increases that have occurred – fuel, tyres, cost of financing and labour – many transporters need to ‘keep the wheels rolling’ to ensure a continuous income stream to ensure commitments are met.”
Kelly said that under these circumstances, it is becoming impossible to ensure a steady stream of income.
“Transporters have endured so many recent disasters (man-made or natural) over the past two years. Many of them will not be able to survive another prolonged break in revenue generation.
“The immediate effect of the Transnet strike on road freight transport will be that many of the smaller fleets (companies) will find they cannot use their assets (vehicles) as they are caught up in delays and do not have the luxury of ‘spare capacity’ – some larger fleets may have to pick up their customer loads.”
Kelly added that some transporters will simply call it a day and close down.
“The constantly increasing risks and costs of running a transport operation has become impossible for some to manage. Others are looking at moving either their business, or their port of choice, to neighbouring countries.
“The choice is clear: we need to resolve this impasse at the ports ASAP – but more importantly, we need to ensure this does not continuously repeat itself.”