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Strong wave of resurgence at SA’s ports

Transnet Port Terminals has invested heavily in new equipment and succeeded in improving efficiencies

A drone view of Durban harbour, one of SA’s busiest ports. Picture: REUTERS/SHIRAAZ MOHAMED
A drone view of Durban harbour, one of SA’s busiest ports. Picture: REUTERS/SHIRAAZ MOHAMED

SA’s ports handled more than 100,000 20-foot equivalent units (TEUs) in week 16 of the current financial year, matching levels last seen in 2017/18.

A noticeable improvement was reported across the board, including at the crown jewel in Transnet’s port portfolio, Durban Container Terminal Pier 2 (DCT2).

Transnet Port Terminals (TPT) CEO Jabu Mdaki says the port system moved 101,295 TEUs in the week under review, not far off the current single week record of 101,871 TEUs, a performance he believes will be sustained.

Mdaki said in an exclusive interview with Business Day that TPT had invested heavily in new equipment to improve efficiencies.

“We are investing R4bn in new equipment in the current 2025/26 financial year ending April 2026. Last year TPT invested R3.4bn. This year alone we have already taken delivery of a ship-to-shore crane in Gqeberha at our Gqeberha Container Terminal,” Mdaki said.

“We took delivery of 20 straddle carriers in Durban at Durban Container Terminal Pier 2 in March. More than 40 forklifts have been delivered at the Cape Town and Durban container terminals. We await the delivery of components for a total of four ship-to-shore cranes later this year, among other things.”

DCT2 is Transnet’s biggest container terminal, handling 72% of the Port of Durban’s throughput and 46% of SA’s port traffic. About 48% of SA’s citrus exports are loaded at DCT2. The terminal received 980 refrigerated containers via rail since the beginning of the season in April.

“While we are only in the first half of the season, this is roughly 16% higher than the entire 2024 season of 846 railed containers,” said TPT’s GM for commercial and planning, Michelle Van Buren Schele.

The investment in new equipment, including refurbishing TPT’s existing fleet, has gone a long way towards improving efficiencies at the ports, with the port network now congestion-free.

For example, the Port of Cape Town, which has over the past few years struggled with shortages of rubber-tyred gantries and their engines, has also seen improved performance. The gantries are used to load and unload containers.

Mdaki said Cape Town is on course to take delivery of 28 new rubber-tyred gantries, while 47 haulers and 47 trailers have already been delivered. Two weeks ago the port handled 19,931 TEUs, surpassing its weekly target by double digits. Year to date the terminal is 28% above target.

TPT has also introduced a shift system along with a new incentive scheme to encourage performance and get the best out of its employees while they strike a good work-life balance.

Mdaki credits the turnaround in performance to returning to the basics.

“We are making good progress filling critical vacancies and retooling our operations. This includes introducing a new shift pattern, long-term original equipment manufacturer partnerships and contracts, and smart technology adoption for real time tracking and planning — including automation and predictive analytics.

“These are driving a leaner, faster and smarter TPT. The business has invested in resourcing its multipurpose terminals and this has not only boosted output but also eased pressure on the container terminals — a win-win for customers and TPT alike,” Mdaki said.

TPT is also increasing its capacity to handle more manganese bulk through the Eastern Cape, and there are major developments in the automotive sector as car terminals prepare to change the current operating model, which allows extended storage to a new model that sees terminals serve as throughput facilities.

Collaboration

The head of research & development at the Southern African Association of Freight Forwarders, Jacob van Rensburg, said performance improvements at TPT reflect enhanced collaboration, improved equipment deployment and stronger operational co-ordination across the value chain.

“Encouragingly, we are beginning to see the fruits of widespread collaboration and sustained industry pressure for reform,” Van Rensburg said.

“Terminals are stabilising throughput, enhancing crane productivity and deploying critical assets such as straddle carriers and rubber-tyred gantries. These wins must be acknowledged and built upon — they are testament to how far the industry has come.”

However, Van Rensburg cautioned that recent improvements are edging the country closer to the upper limits of its existing installed port capacity.

“Without urgent investment and accelerated structural reform this progress risks being short-lived. No significant new capacity has been developed in recent years, and theoretical design thresholds of current infrastructure are rapidly being reached.”

Transnet’s flagship private sector participation at DCT2 is held up in the courts after a losing bidder successfully interdicted the multibillion-rand project.

International Container Terminal Services Incorporated (ICTSI) was chosen as the preferred bidder by Transnet but rival bidder APM Terminals objected, alleging that ICTSI was unfairly favoured by the state-owned freight and rail group.

‘Business as usual’

Judgment on the main application by APM to set aside the 25-year contract is expected before the end of this year. ICTSI’s bid was R2bn higher than that of APM.

However, Mdaki said it was “business as usual” at DCT2.

“With or without a private partnership, necessary investment and maintenance will continue to sustain momentum. In fact, some of the biggest improvements we have noted in the recent past are coming from DCT2,” he said.

“It has been over a year of vessels berthing on arrival at the terminal with no sign of a backlog.

“The DCT2 has increased its ship working hours by 21% in the first quarter of 2025/26 compared to the first quarter of the 2024/25 financial year. The terminal has further improved its gross crane moves by 10% in the same period of measure.”

Khumalok@businesslive.co.za

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