{"id":57342,"date":"2023-11-30T16:37:52","date_gmt":"2023-11-30T16:37:52","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs"},"modified":"2023-11-30T17:44:24","modified_gmt":"2023-11-30T17:44:24","slug":"durban-port-privatisation-will-resolve-transnet-backlogs","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs","title":{"rendered":"Durban port privatisation will resolve Transnet backlogs"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The privatisation of Durban\u2019s container terminal will significantly improve productivity and, in time, resolve the severe backlogs at the port.<\/p>\n

Durban is Transnet\u2019s largest container terminal, handling 46% of the country\u2019s total port traffic and over 60% of its container traffic.<\/p>\n

The port is already facing severe congestion and hefty fines from shipping lines. The breakdown of essential equipment has triggered a crisis at the port, a vital artery for the country\u2019s container traffic.<\/p>\n

Durban\u2019s two piers lost a combined 265 operational hours in September and October, causing more than 20 vessels to wait at outer anchorage, with berthing delays averaging up to 18 days.<\/p>\n

The utility blamed poor weather, equipment breakdowns, and shortages for the significant delays in processing ships.<\/p>\n

However, the head of logistics at Investec, Denys Hobson, said this crisis has been looming for some time as Transnet\u2019s mismanagement, corruption, and lack of maintenance are the root causes.<\/p>\n

\u201cWarning signs were there. We cannot beat around the bush \u2013 corruption was alive and well for a period of time at Transnet, but it is also a case of poor management and leadership,\u201d Hobson told Newzroom Afrika.<\/p>\n

The utility has known for years that its equipment is outdated and has failed to maintain its machinery adequately, resulting in repeated breakdowns.<\/p>\n

International Container Terminal Services Inc. (ICTSI) is set to take over Durban\u2019s container terminal after entering into a 25-year partnership with Transnet earlier this year.<\/p>\n

The Philippines-based company is the largest independent terminal operator in the world, with operations in over 20 countries.<\/p>\n

Hobson said ICTSI has vast experience managing ports, increasing their efficiency, and modernising them.<\/p>\n

Their takeover will make a difference and improve the performance of Durban\u2019s container terminal, but it will take time.<\/p>\n

Head of ports, transport, and logistics at Bowmans Law, Andrew Pike, is far more optimistic about the impact of the privatisation of the container terminal.<\/p>\n

Pike said ICTSI\u2019s track record resulted in it beating out six competing bids for the container terminal.\u201cIf you look at their ports, it is really world-class. They are a very good partner to go with.\u201d<\/p>\n

ICTSI also has experience dealing with unionised labour in the Philippines, enabling the company to operate effectively with Transnet\u2019s heavily unionised workforce.<\/p>\n

Transnet will have a 50+1% share in the joint venture, and the utility will remain the employer of workers contracted out to ICTSI.<\/p>\n

ICTSI will have management control of the company and \u201cwill be fairly free to introduce change\u201d.<\/p>\n

Pike expects the company to overhaul the port\u2019s management structure and operational systems, focusing on automation and digitisation. This will increase the productivity of the port immensely.<\/p>\n

\u201cIf you look at some of their performance figures from around the world, it is not unreasonable to expect them to double, if not triple, the productivity of Durban\u2019s port.\u201d<\/p>\n

This does not mean ICTSI will have it easy, as there are at least five months of negotiation before the deal is completed.<\/p>\n

\u201cTransnet is used to running a monopoly, and they will not take kindly to being told what to do,\u201d Pike said.<\/p>\n

There are also significant problems with getting goods to and from the port as Transnet\u2019s rail infrastructure is collapsing.<\/p>\n

\u201cWithout an efficient logistics system, a well-functioning port is a bit of a waste of time,\u201d Pike said.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The privatisation of Durban\u2019s container terminal will significantly improve productivity and, in time, resolve the severe backlogs at the port. Durban is Transnet\u2019s largest container terminal, handling 46% of the country\u2019s total port traffic and over 60% of its container traffic. The port is already facing severe congestion and hefty fines from […]<\/p>\n","protected":false},"author":84,"featured_media":57340,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-57342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nDurban port privatisation will resolve Transnet backlogs - South Africa<\/title>\n<meta name=\"description\" content=\"The privatisation of Durban\u2019s container terminal will significantly improve productivity and, in time, resolve the sever ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Durban port privatisation will resolve Transnet backlogs\" \/>\n<meta property=\"og:description\" content=\"The privatisation of Durban\u2019s container terminal will significantly improve productivity and, in time, resolve the sever ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T16:37:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-30T17:44:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/11\/sm_1701353566.995983.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Durban port privatisation will resolve Transnet backlogs\",\"datePublished\":\"2023-11-30T16:37:52+00:00\",\"dateModified\":\"2023-11-30T17:44:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs\"},\"wordCount\":572,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/11\/sm_1701353566.995983.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/durban-port-privatisation-will-resolve-transnet-backlogs\",\"name\":\"Durban port privatisation will resolve Transnet backlogs - 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