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OFFICIAL PUBLICATION
SA ports continue to be a challenge for industry
Logistics dynamics around the world are one thing , the state and operation of ports is another … this has become particularly true in the local equation as the state of South African ports are quickly moving up the list for critical attention and down the list in world rankings .
Port problems have now shifted from only being reported in trade media to the consumer media space with several articles having been published around delays for imported goods but more importantly , our export goods – where a major component lies in fresh produce . Some news sources have claimed that containers of fruit are sitting rotting at certain ports .
Perhaps little known in the figures is the fact that the fresh fruit and vegetable exports of this country contribute many , many billions in revenue , but , with the state of the ports ( as reported from several sources ) this is a serious hinderance to the country , its partners , role players , and even more so towards employment as the agricultural space provides nearly one million jobs annually ( according to Stats SA ).
There is definitely a fine balancing act going on here as farmers , shippers and industry role players all have their own versions and views , and the authorities ’ statements indicate that little to no problems exist . If this is the case in fact - with containers waiting for nearly two weeks for loading ( as reported ), there is clearly a poor understanding of the cold chain – especially when power disruption tops the bottleneck and conditions are not maintained . Various photos as “ evidence ” does indeed indicate a problem , with kilometres of backed up trucks into and out of ports . These have been shown in the media and Cold Link Africa has seen several photos directly supplied by concerned parties in the industry – with some suggesting queues at certain times exceed five kilometres .
Reports also continue to flow in of ships waiting in queue for weeks on end , or even operators deciding to bypass local ports owing to the inefficiency of function – and therefore creating further delays and costs that additionally must be negotiated . Having travelled personally to Durban and Cape Town over recent months , the ships queuing is evident . Other reports from the ground are that certain areas of the ports have deployed strategies of limited access as congestion of loading and unloading in these areas just cannot be brought under control . In addition , the crane activity is another giveaway .
Logistics operators too have had their say on the immense frustration that this has caused , with seemingly no end in sight as conditions do not improve and these delays become “ normal business to incorporate into their operations ”. Also , drivers stuck in convoy have reported to be unnecessarily targeted by police and traffic officials in the port areas when they have nowhere else to go .
Wikipedia | Creative Commons
By Benjamin Brits
In the bigger picture , South African Ports are not very large operations . This image depicts the terminals in Cape Town .
Further to that , when authorities impose a state of “ force majeure ” for conditions that could have been mitigated – such as backup power in a country with known regular disruptions , this then flows over to the insurance aspects and creates outcomes where policy claims are rejected . This is a sure way to damage sectors large-scale and reduce appetite for business and this in turn works against attempts to mitigate job losses . How can businesses sustain such losses without dire outcomes ?
A major factor for these inefficiencies has been attributed to workforce shortages and the conditions resulting because of the pandemic , however on doing some further research , the complaints around the ports in South Africa has been noted for many years already – far preceding the current conditions . What has been raised year on year is the failure of the authorities to invest into new equipment , and worse to even maintain existing equipment that is falling month by month further into disrepair .
A scary reality is that experts have suggested that to bring the ports back into an operational state of efficiency will cost in the region of R220-billion . This is not including any costs of expansion or maintenance . President Cyril Ramaphosa during a press briefing in 2021 at the Durban Port already indicated that a value of R100-billion would be allocated to “ upgrades ” there . These figures are essentially inadequate when considering this budget item totals around R500-billion over the next three financial years . Being behind would be considered a gross understatement , besides the many years it would take to have such extensive projects completed and compounded by the regular delays we have also come to expect as “ normal ” with such projects .
Coupled to the essentially failed rail infrastructure ( also reportedly falling further and further into disrepair owing to lack of maintenance and continual infrastructure theft ) and the ports in extremely poor conditions , industry feels South Africa is set to be facing extremely serious consequences should a remedy not be derived soon . Transport via air , as the alternative , for our fruit and vegetable industries would never be a sustainable solution should serious failure indeed happen . Some comments noted are that these sectors are already at a “ catastrophic state ”.
Should any doubt about a problem existing arise , one would only need to go and find the reports of the World Economic Forum where it states that the South African ports have become some of the worst on the entire planet – definitely not a ranking to ignore for those in denial .
As another industry role player suggests , “ it is time this hot potato gets managed because it ’ s really burning holes “. As with most management principles , sorting out the actual problems should be deployed to identify appropriate solutions . Needless to say that it is much more effective to systematically prevent and solve underlying issues rather than just treating incidents and putting out fires . If you don ’ t solve the problem , those conditions are guaranteed to just persist - taking up manpower and resources .
The reported problems with our ports cannot be left without resolve or by passing the blame onto whatever agenda or lack of resources could be used etc . As our essential lifelines to the world economy , they are critical pieces of the puzzle that need to be 100 % functional and efficient . You can ’ t plug into the global supply chain without a plug point .
There are so many solutions to sort out a dilemma of this kind – all that is really required is the right people in the right room and of course with the attitude and willingness to action resolve to a potentially disastrous and crippling economic influence , timeously . In the bigger picture of the world , the South African ports are not big at all . As suggested by industry “ no one needs any more meetings – what is required is action , and fast ”. Kicking the can down the road can ’ t be the accepted outcome anymore .
What are your thoughts and experiences on the state of the ports in South Africa ? I welcome your feedback . CLA
COLD LINK AFRICA • May 2022 www . coldlinkafrica . co . za 5