Recent developments have seen improvements at both ports in addressing these challenges.
Transnet has said it is making considerable progress in implementing institutional reform measures in accordance with the Freight Logistics Roadmap and the Guarantee Framework Conditions issued to the parastatal by Treasury.
The entity faced challenges with vessel and container backlogs at the Durban port last year and ongoing truck congestion at the ports of Durban and Richards Bay. Recent developments have seen improvements at both ports in addressing these challenges.
Transnet said that it had initiated the corporatisation of the National Ports Authority (TNPA), which will culminate in the establishment of TNPA as a wholly owned subsidiary of Transnet.
“The reform will enhance TNPA’s regulatory oversight on terminal operators across its port network. The corporatisation will establish TNPA as a financially autonomous entity capable of generating its own revenue,” said Transnet.
Transnet group chief executive, Michelle Phillips, said that these initiatives reinforce Transnet’s commitment to proactively respond to the changing operational and policy environment.
“A viable logistics industry is the lifeblood that runs through the veins of the South African economy.”
However, the logistics sector said they need to see more from Transnet on the ground in addressing shortcomings at ports and rails.
Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said that the roadmap released in December 2023 was aimed at addressing the serious and sometimes crippling challenges in South Africa’s logistics network.
“It has been approved by the Cabinet and is designed to restore South Africa’s logistics networks. It is estimated that South Africa lost R27 billion in iron ore and the coal export trade since 2010.”
Hartwell said that some of the challenges require long-term commitment to resolving them.
“This relates in particular to the desperate need for massive spending on infrastructure in a stagnant economy facing demands for spending on other sectors. Industry has welcomed many of the recent appointments to the Transnet board and its operating divisions.
“The new appointments are recognised as having the necessary technical skills, experience, competence and integrity to resuscitate the rail network and improve the ports’ efficiency,” he said.
Hartwell said that the new board and management now face the challenge of recruiting persons with the necessary attributes in middle and lower management and at the operational level.
He said that recognising the need for the Port Authority to operate as a separate entity has led to the sudden determination to corporatise it.
“This is critical as it will force the Transnet tenants in ports to become more efficient as they will be competing with private operators.”
City of uMhlathuze spokesperson Bongani Gina said that the City acknowledges the ongoing efforts and reform measures undertaken by Transnet.
“The City is keen to see tangible actions and the fulfilment of promises made, especially in relation to managing the truck congestion at the Port of Richards Bay. The current situation has necessitated the City to spend substantial overtime funds on traffic officers to manage this congestion.”
Gina added that they appreciate the progress reported by Transnet, including the rail reform and the corporatisation of the TNPA.
“The City of uMhlathuze is eagerly awaiting the promised improvements and urges Transnet to transition from statements to action, ensuring that the infrastructure and operational enhancements are implemented promptly.”
Gavin Kelly, CEO of the Road Freight Association (RFA), said the association notes the recent Transnet update on reform and capacity growth initiatives.
“While there are numerous references to action being taken within Transnet, some moving of entities within the Transnet stable into wholly owned entities and various other restructuring, the RFA like the rest of the country looks forward to seeing the fruits of these actions and inside activities of Transnet.”
Kelly said the proof of progress will be once real infrastructure is put down, trains run efficiently and frequently, business imports and exports are handled responsibly and the ports become freeways for freight to move.
The Mercury