A fortnight after the IT system at state-owned company (SOC) Transnet was hit by a suspected ransomware attack, at least two of the company's websites were still down. On Thursday afternoon, the main Transnet website and that of Transnet Port Terminals remained offline.
Since the cyber attack on Thursday, July 22 some of the SOC's main applications were restored. They included Navis, a system Transnet and its customers use to co-ordinate the movement of shipping containers at ports, and the company's email.
This week, Transnet and stakeholders in freighting were hard at work to resolve a persisting backlog at ports, including Cape Town and Durban. A temporary move from online scheduling to less efficient manual systems two weeks ago led to delays not yet resolved.
The world’s biggest shipping container company alerted clients to problems at Durban’s pier two terminal earlier this week. Maersk said movement within the terminal was restricted on Tuesday. Trucks and containers could not flow, and there was significant gate congestion.
Spokesperson Kerry Rosser said Maersk and Transnet were co-operating to minimise disruptions at Durban port due to congestion. “We are working with our customers to offer a variety of solutions both on the landside and ocean operations,” she said.
According to Transnet, by 2pm on Wednesday there were 6,430 import containers at Durban's second pier terminal. This compared to an average of 9,623 import containers there from July 5 to 12. Transnet expected six new vessels holding 13,435 import containers to berth in Durban next week.
On Thursday, Transport Port Terminals (TPR) began testing a new booking system in Durban, to “normalise” imports. Hourly appointments for shipping containers increased from 100 to 150 slots. The new system's trial launched on Thursday morning.
Transnet's cyberattack in late July hit the shipping industry hard, soon after civil unrest and violence forced KwaZulu-Natal ports to temporarily halt operations.
The day of the IT breach, Transnet announced a force majeure, which lasted a week and a half. International trade lawyer Niel Joubert explained: “Your obligation to perform under the contract is suspended or extinguished as provided for in the contract. In some cases the force majeure provisions can allow you to actually terminate the agreement after a certain period.
Joubert said forces majeures were common in contracts between large importers and exporters, whereas they were rare among small traders. “It is not only the obligation to perform in terms of their contracts, but also the trickle-down effect that could hurt traders [...] they might still be liable for additional costs,” said Joubert.
Last week the SA Meat Producers Association (Sampa) warned of a possible food shortage due to ongoing problems at the Durban port. SAMPA, which represents 46 major meat manufacturers in SA, urged government to intervene. It subsequently met with the department of agriculture and rural development.
CEO Peter Gordan said, “Good progress has been made in clearing the backlog. Reefer containers have moved quite a lot but there is a large number of regular — so, non-refrigerated products — still in the terminal.”
Sampa and Transnet have agreed meat products will be transported to three City Deep warehouses via rail instead of road. “We generally do not use rail because it's quite slow and cumbersome. But they've assured us that they will make sure to move as fast as possible,” said Gordon.
The Automotive Business Council represents about 48 different car and car part manufacturers in SA. Chair Mikel Mabasa said, “The disruptions we've seen from Transnet has obviously had some significant impact, particularly on the back of the unrest.”
He said the council was pleased that Transnet resolved many challenges caused by the IT attack. “Many of our containers destined to come to SA are now able to dock at the ports of entry and we are also able to refill many of those containers,” said Mabasa.
On Monday, Mabasa attended a Business Unity SA (Busa) meeting with Transnet and various stakeholders in shipping, freighting and logistics. He said, “They've given us assurances that they've taken very serious measures to address not only this particular attack but also to avoid any recurrence.”
Note: Business Day sent questions to Transnet's spokesperson and senior manager for external communications. Answers to the queries, issued in writing and followed up via phone and email, had not been received at the time of publication online. Any feedback will be included as received.
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