By Larry Claasen
THE congestion at one port can easily lead to congestion at another, says MEC Dr. Ivan Meyer.
Port Performance South Africa, the turnaround at the Port of Cape Town largely depends on the performance of the Port of Durban, says Dr. Ivan Meyer, the Western Cape MEC for Agriculture, Economic Development, and Tourism.
Meyer explains that while there is a turnaround plan for the Port of Cape Town, delays at the Port of Durban have a knock-on effect.
“Part of the problems that we experience is the delays at the Port of Durban. And from Durban, they come here, and then to Europe. Now if there are delays in Durban, exports come here. Then people say, but they are stuck in Cape Town. No, they were stuck at the Port of Durban.”
Transport minister prioritises Durban
The importance of resolving Durban’s challenges is evident, as Minister of Transport Barbara Creecy has made it a top priority for ports. Meyer supports this move, emphasizing the interconnectedness of South Africa’s transport system.
The relationship between ports can be seen in the dramatic rise in coal exports from the Western Cape. According to Wesgro’s Western Cape Trade Flows & Developments 2022 report, coal exports increased 395% from R1,63-billion in 2021 to R8,12-billion in 2022.
This spike coincides with a drop in coal exports from the Port of Richards Bay in KwaZulu-Natal, home to Africa’s largest coal terminal.
Port performance South Africa: Economic impact overview
South Africa’s port inefficiencies are not just a logistical headache but a drag on economic growth. “Analysts estimated that during the peak of the port challenges, the collective economic impact of slowdowns exceeded R124-billion a day,” notes a report by the US Department of Agriculture.
The crisis was severe. In November 2023, over 60 000 containers were reportedly stuck at sea around the Port of Durban due to bad weather and equipment failures.
“Transnet generally pointed to ageing equipment as the cause, while others in the industry pointed to underinvestment in strategic infrastructure and a lack of critical maintenance,” the report added.
The ripple effect of Durban’s port challenges has impacted Cape Town, causing backlogs and delays that cost the fruit industry an estimated R2,5-billion in the 2021/2022 season. The scale of inefficiency is reflected in the World Bank’s Container Port Performance Index, where Durban ranked 341 out of 348 ports globally, and Cape Town ranked 344 in 2022.
Progress at Cape Town’s port
Despite these challenges, Meyer says efforts to address the crisis are gaining traction. “There is now a port turnaround plan. They’ve discussed the plan in detail. The plan is feasible,” he says. Meyer highlights the collaboration between stakeholders: “The people are cooperating. And all the producers are now in a daily war room.”
Minister Creecy’s leadership brings urgency
Meyer commends Transport Minister Creecy for her proactive approach to addressing the crisis.
She’s responding to urgent requests, he says. For example, one of the things they required was a helicopter. And the staff of Transnet explained the helicopter could only come later this year. Creecy said this could not wait, and expedited the request.
“There’s an urgency that she brings to it. And I’m particularly happy. And I will go again to the harbour to make sure that things are working.”
