Opinion Piece By Gavin Kelly, CEO, Road Freight Association
The woes of sub-standard services and inefficiencies at the Port of Durban seem to destined to stay with us for the foreseeable future.
The Road Freight Association (RFA) notes with dismay that the process of introducing private players into the Port of Durban – specifically Pier 2, has been dealt a serious stumbling block – probably the death-blow to the future sustainability of South African ports, unless this is resolved.
While the intricacies and deeper arguments that have given rise to the Interdict by the High Court are not known to the RFA, it is a pity that – according to some of the arguments put forwarded – this process of implementing a private operation in the Port of Durban which has been underway for a number of years, still has not resulted in efficiencies being improved at the Port.
The Association has raised – on numerous occasions over the past two decades with a heightened engagement with Transnet and Transnet Port Terminals (TPT) over at least the last decade – the dire need to improve operations, efficiencies and capacity at the Port of Durban.
The reality has been that our neighbours have upped their game, that shipping lines are choosing different ports of call and that the logistic supply chain is, in reality shrinking through South African ports and moving to other ports. We cannot, as a country and more importantly as the logistics supply chain, allow this trend to continue.
Rail and ports have declined to such an extent that we are the laughing stock of many African countries (and they are benefitting greatly), but more importantly we are going to lose primary and support industry sectors, shed jobs and bleed revenue from a national fiscus that is already in dire straits.
The state monopoly of key nodes in the supply chain must be removed – especially where the state has proven that they cannot efficiently, effectively and affordably support infrastructure and services in the logistics supply chain. The private sector must be brought in to save the status of South Africa as a logistics hub and node – both for trans-African trade and for regional and national trade.
The RFA trusts that, through the court process, a fair and transparent introduction of private players into the Port of Durban (and other ports) will now start and become a reality. We cannot wait any longer. We cannot continue to be a second or last choice for those international shipping businesses, companies and industries that wish to do business within and to the north of South Africa.
There are so many examples of how ports are run around the world. Is it so difficult to learn from those examples? Is the delay really about maintaining a monopoly and protecting vested interests? Those are some of the questions that the legal process should address.
The Association supports the initiatives to bring private players into the Port of Durban. It further supports a transparent and fair process ensuring that South Africa gets the best value possible for the price paid, as well as a system that will be innovative, efficient and progressive to meet the demands of the future, not just the demands of today.