The Southern African Association of Freight Forwarders (SAAFF), often a critic of Transnet, says it has seen a marked turnaround in the capacity and operational readiness of the country’s ports.
The head of research and development at SAAFF, Jacob van Rensburg, said there had been a “substantial” improvement in volumes throughout the country’s key container terminals.
Van Rensburg pointed to the Busa/SAAFF cargo movement update for the last week of June that says SA’s port network handled more than 97,000 20-foot equivalent units for the week, 13% above target.
Earlier this year, SAAFF said the country was losing as much as R1bn a day in missed opportunities at its ports.
“This performance underscores the steady progress being made,” said Van Rensburg.
“Consolidated performance data shows an average of 16,359 containers handled per day on Saturday and Sunday — up markedly from the previous recent benchmarks,” Rensburg said.
“Further encouragement comes from the fact that the load has been shared across the board — including the smaller and multipurpose terminals not dedicated to containerised cargo — epitomising a team effort.”
SAAFF attributes the positive trade surplus of R21.7bn recorded in May to the improvements in the performance of the ports.
The collaboration between big business and the government to turn around SA’s underperforming logistics sector is starting to bear fruit, with the country’s largest coal exporter, Thungela, last week taking a bullish position on its prospects after improvements in the rail network.
The rail network’s marked improvements saw Thungela report an increase in output at its SA operations for the six months to end-June.
The company expects export saleable production in SA to reach about 6.4-million tonnes, up from 6.2-million tonnes in the same period last year.
The group, which is undergoing a leadership transition, said rail performance in the first five months of this year enabled 55.5-million tonnes on an annualised basis for the industry.
Exxaro, however, seems to have a different experience, with the group this week saying Transnet Freight Rail (TFR) continues to face disruptions, including cable theft, power failures, locomotive and wagon shortages, and deteriorating infrastructure.
SA’s vast railway network is on the verge of a shake-up that will introduce third-party access to it — but it needs about R14bn a year of investment in its six corridors, which have been plagued by theft, vandalism and outdated systems, Transnet says.
The cash-strapped Transnet, which in December reported a R2.2bn interim loss for the six months ended September, operates the country’s 21,323km of rail infrastructure.
Transport minister Barbara Creecy in December approved the publishing of the Transnet Network Statement, a major step in facilitating open access to the country’s rail network by third-party operators — a move welcomed by the business community and industry players.
The world has previously ranked SA’s ports as some of the world’s worst performing, an assessment Transnet has denied.
“We are seeing meaningful progress and renewed operational capacity from Transnet,” SAAFF’s Juanita Maree said, adding that the uptick in performance of the ports would go a long way in boosting global investor confidence in SA’s markets.
“The hard work across the board by all involved — from TPT personnel to logistics partners — combined with the deployment of new equipment, improved cargo evacuation processes and ongoing terminal refurbishments is clearly gaining traction under this cross-collaborative approach.”
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