South Africa’s Container Throughput Declines Amid Operational Challenges and Court Ruling

South Africa’s Container Throughput Declines Amid Operational Challenges and Court Ruling

Following a relatively stable performance at the end of September, the beginning of October saw an 8% decline in container throughput at South African ports, dropping from a daily average of 8,072 to 7,384 containers week-on-week.

The latest Cargo Movement Update, compiled by the South African Association of Freight Forwarders and Business Unity SA, indicated that port operations were primarily hampered by inclement weather, equipment breakdowns, and shortages.

The report noted, “Strong winds, high swells, and vessel restrictions represented the main operational constraints at the Port of Cape Town.”

Simultaneously, adverse weather and equipment issues caused operational delays in Durban, where the industry is still coming to terms with Wednesday’s ruling from the KwaZulu-Natal High Court in favor of APM Terminals (APM T).

This interdict, awarded to the terminal’s subsidiary Maersk, has halted the 25-year privatisation tender that Transnet had awarded to the Philippines-based International Container Terminal Services (ICTSI).

APM T’s successful court bid has left South Africa’s cargo industry reeling with disappointment. It has been over a year since ICTSI was announced as the successful concessionaire, a decision that was expected to significantly enhance cargo handling at Durban’s Pier 2 container facility.

Yesterday, while many private-sector executives were eager for improved throughput at Durban, most chose not to voice their frustration regarding the ICTSI situation.

However, cargo clearing expert Michael Henning did not hold back in expressing his disillusionment.

“It feels like a gut punch for an industry that has long suffered and is slowly beginning to recover,” said Henning, the general manager of Easy Clear, which facilitated South Africa’s inaugural shipment under the African Continental Free Trade Area from Durban in January.

Henning expressed cautious optimism, stating, “I hope this issue can be resolved quickly and trust that Transnet will continue to implement improvements at the port, despite this ruling.

This should not deter the executive from investing in the equipment and efficiencies that are desperately needed.”