How to fix Transnet’s ports in the interest of economic growth

Transnet’s pots must be fixed fast and efficiently in the interest of economic growth. The public procurement process seems the be the main cause of the problems, although incompetence and cadre-deployment also played a role in all but destroying the state-owned entity’s ability to fulfil its part of the supply chain.

Transnet is currently facing turbulent waters, particularly in the procurement process, where onerous Public Finance Management Act (PFMA) requirements are posing significant challenges, Ian Pettey, managing director of Crown Relocations South Africa, says.

“The repercussions of this struggle are most evident in the beleaguered Durban port, which has long been plagued by inefficiencies, showing no signs of resolution. At the heart of the issue is the cumbersome nature of the procurement process.”

Pettey says port equipment, spares and replacement parts are indispensable for the swift replacement and refurbishment the industry needs but bureaucratic hurdles imposed by the PFMA requirements hinder the timely acquisition of these essential components.

The consequence is a mounting backlog of 60 000 containers in Durban, a backlog projected to take an alarming 18 weeks to clear.

“As we approach the festive season, the timing could not be worse. Many of these containers hold goods intended for Christmas sales and the failure to handle this backlog promptly threatens to cast a shadow over the holiday spirit. It is not merely an operational challenge but a dire reflection on our port authorities.”

ALSO READ: R47 billion guarantee for Transnet not a silver bullet

Ports that function well backbone of country’s economy

Pettey points out that well-functioning ports serve as the lifeblood of a nation’s economy, playing a pivotal role in facilitating the smooth flow of goods, domestically as well as internationally.

“These vital gateways connect producers to consumers, manufacturers to raw materials and businesses to global markets. Efficient ports contribute to the reduction of transportation costs, minimising delays and ensuring the timely movement of goods.

“They enhance trade, stimulate economic growth and attract foreign investments. It follows that well-maintained ports create employment opportunities and foster the development of ancillary industries, from logistics and transportation to warehousing and manufacturing.”

A country’s competitiveness on the global stage is intricately linked to the effectiveness of its ports, as they form the backbone of a resilient and interconnected economy, Pettey emphasises. “In essence, the significance of well-functioning ports extends far beyond their physical boundaries, reaching into the heart of a nation’s economic prosperity.”

The challenges Transnet has to deal with are formidable and underscore the urgent need for comprehensive solutions. Pettey says the path to resolution is clear: tackling inefficiencies in planning and people management, reinvigorating the railway network, giving due priority to infrastructure maintenance and adopting maritime digitalisation are not mere strategies but imperative steps towards ensuring the resilience and efficacy of our ports.

“Beyond the economic ramifications, these measures represent a commitment to the very essence of the holiday season: the seamless flow of goods, the timely arrival of gifts and commodities at their intended destinations and the preservation of the festive spirit unburdened by the weight of logistical challenges.”

He says as we stand on the brink of the festive season, the imperative is not just economic but a commitment to the seamless functioning of our ports, ensuring that goods reach their destinations and that the spirit of the season remains unencumbered by logistical woes.

ALSO READ: Chaos at ports will cost the country, businesses and consumers

Streamlining planning and improving people management

The root cause of the delays lies in inefficient planning and ineffective people management within the port authorities. Pettey says streamlining these processes is imperative to alleviate the bottlenecks. “Unhappy staff members contribute to the delays, necessitating a comprehensive approach to address the issues at the core.”

Revitalising the Transnet railway network

The over-reliance on trucks for container transportation is a bottleneck that needs urgent attention, Pettey says. The railway network, if revamped, has the potential to carry a substantially larger number of containers directly into the harbour, significantly reducing road congestion.

“Recent instances, such as the line of coal trucks at a standstill outside Richards Bay, underscore the urgency of upgrading our rail systems.”

Prioritising maintenance of Transnet infrastructure

Just like Eskom, the maintenance of gantries and equipment at the port has been overlooked, causing delays in loading and offloading ships. Pettey says a rigorous maintenance schedule is imperative to ensure that these essential components operate seamlessly, contributing to a more efficient port ecosystem.

Embracing maritime digitalisation

“In a world moving towards digitalisation, our South African port authorities must keep pace with the global maritime digital age. Implementing digital solutions will enhance planning capabilities, resource management and communication, mitigating port congestion and ensuring alignment with the dynamic demands of the supply chain,” he says.