President Cyril Ramaphosa made an official visit to the Port of Richards Bay today, 23 November 2023, to personally evaluate the existing congestion issues and measures being implemented to alleviate them.
During his visit, the President engaged with Transnet’s leadership, gaining valuable insights into the current challenges faced at the port and the proactive steps being taken to alleviate congestion and enhance operational efficiency.
The burgeoning traffic of trucks converging at the Port of Richards Bay has stemmed from a multitude of issues within the rail system, compounded by the aftermath of a fire incident in October 2021 that resulted in damage to conveyor belts.
The Northern Corridor railway line, pivotal in transporting coal and other essential commodities to Richards Bay, has witnessed a decline in performance due to historical underinvestment in infrastructure, insufficient locomotives, and incidents of cable theft.
In response to these challenges, Transnet has devised a short-term strategy aimed at bolstering operations within the corridor. This includes the imminent incorporation of four additional locomotives by the conclusion of November 2023, an expansion in the length of trains from 40 to 50 wagons, and an expedited reinstatement of a conveyor belt at the Richards Bay Dry Bulk Terminal, scheduled for completion by December 2023.
The implementation of these interventions is anticipated to alleviate congestion and enhance throughput in the forthcoming weeks, thereby mitigating the current logistical strains and fostering economic growth.
Recognizing the critical role of an efficient logistics system in driving job creation and facilitating economic expansion, the government has prioritized the enhancement of South Africa’s rail system and ports.
To achieve this objective, the National Logistics Crisis Committee (NLCC) has taken the helm in orchestrating a coordinated effort to stabilize and enhance the performance of the country’s rail system and ports. The establishment of five Corridor Recovery Teams (CRTs), each comprising Transnet managing executives, rail and port users, and independent experts, marks a strategic initiative to expedite the implementation of key measures aimed at amplifying the volume of goods transported across the network.
In tandem with the public sector’s efforts, the private sector has pledged its support to the NLCC, extending assistance to fortify systems, augment efficiency across the value chain, safeguard rail infrastructure, and address critical equipment shortages.
Furthermore, the Transnet Board has formulated a comprehensive recovery plan designed to enhance operational performance and stabilize Transnet’s financial standing over the next 6 to 18 months.
In addition to these immediate actions, the government has finalized the Freight Logistics Roadmap, charting a trajectory for the reform of South Africa’s freight logistics system over the long term.
This roadmap encompasses pivotal reforms, including the introduction of open access to the freight rail network, facilitating the participation of private rail operators, and greater involvement of the private sector in container terminals.
Remarkable progress has already been achieved in this endeavor with the selection of an international terminal operator to collaborate with Transnet at the Durban Pier 2 container terminal, which handles a substantial portion of the Port of Durban’s throughput and a noteworthy fraction of South Africa’s port traffic.
In preparation for the impending open access system slated for April 2024, Transnet has set up an interim Infrastructure Manager for the rail network.
These transformative reforms are poised to revolutionize South Africa’s logistics system over the long haul, reestablishing its status to that of world-class standards and fortifying the nation’s position in the global trade arena.
