The South African Association of Freight Forwarders (SAAFF) has raised the alarm over a crisis at the port of Durban, the major gateway for container cargo in the country. With more than 60% of South Africa’s container cargo passing through this port, a bottleneck of unprecedented proportions has left over 60,000 containers stranded at sea, awaiting clearance. This backlog, exacerbated by equipment malfunctions and severe weather conditions, has dealt a severe blow to the already fragile economy of the nation.
The delay in offloading these containers has not only raised concerns within business circles but has also sparked a political row. On Monday, November 27, traffic congestion at the state-owned Transnet port triggered a heated exchange, prompting the major opposition party, the Democratic Alliance (DA), to demand the dismissal of Public Enterprises Minister Pravin Gordhan.
Durban, being a vital hub for exporting mineral and agricultural products, is crucial for the Southern African region. Transnet, responsible for managing the country’s ports and rail freight network, has attributed the delays to adverse weather and operational challenges stemming from aging equipment. However, conflicting reports from the DA and industry bodies suggest that the issue has been festering for some time.
Ongoing challenges such as theft, maintenance issues, and fraudulent activities have plagued Transnet, leading to a strained support system for Africa’s most industrialized economy. As a result, SAAFF reports that South Africa is hemorrhaging over 120 million rand (U.S.$6.4 million) daily due to the delays at Durban and other terminals.
In response to this crisis, South African President Cyril Ramaphosa has mooted the idea of increased private sector involvement in container ports to address the systemic challenges plaguing the logistics network. As the nation grapples with this dire situation, the need for swift and decisive action to resolve the crisis at the port of Durban has never been greater.