The Road Freight Association (RFA) CEO Gavin Kelly blames the deterioration of South Africa's ports and rail on a decade-long neglect by Transnet and its subsidiaries, criticising executives, management, and ministers for their failure to address the decline.
The RFA participates in the National Logistics Crisis Committee (NLCC) to address logistical challenges, advocating for private sector control of struggling State-Owned Enterprises (SOEs).
South African Association of Freight Forwarders (SAAFF) CEO Dr. Juanita Maree emphasizes the urgency of overhauling the management of port and rail infrastructure to prevent a severe impact on the economy.
Ongoing delays at the Port of Durban are causing disruptions in the logistics system, potentially leading to increased prices and shortages of certain products. Importers face additional charges due to delays, impacting dry ingredient products like powdered eggs.
Inbound vessels are being diverted to other ports to alleviate the situation, but concerns arise about the capacity of alternative ports to handle the increased freight traffic.
Current regulations do not allow the import of containers through other SADC countries, making the substitution of port terminals difficult. Without this barrier, the dwell time for cargo attempting to enter South Africa could be slashed by weeks, as the handling time for Walvis Bay and Maputo is measured in hours rather than days and weeks, as it is for our ports.
The Lobombo border is getting clogged by the rerouting now though, and takes up to four days in wait time, but those passing through the Namibian border do not experience this, waiting only as long as 30 minutes.
The South African Association of Freight Forwarders (SAAFF) CEO Dr Juanita Maree warns that if our logistics networks fail, 60% of the South African economy is at risk, especially as the country has become increasingly import dependent as industry leaves for more favourable business climates.
“Over the last decade, our terminal efficiency has declined by 28% compared to our internal targets. Benchmarked against globally recognised best practices for ports of a similar size, current throughput at 84% of demonstrated capacity is 50% below norm,” Maree says.
According to academic studies of port disruptions, delays of the scale South Africa is experiencing cost on the order of billions. While import substitution can dampen the impact, our fragile, skills-scarce and import-dependent economy can scarcely attempt such measures.
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