SA ports’ ability to deal with influx again under scrutiny

Experts and role-players in the shipping industry have raised concerns about South African ports not having the capacity and efficiency to handle the shipping influx caused by the disruption in the Red Sea.

The increase in maritime traffic as reported by Business Report, has been attributed to vessels – especially those with ties to Israel – that are being attacked by Houthi rebels. SA ports have seen vessels being rerouted to them.

Experts said despite this increase it has not benefited the economy of South Africa due to the shortcomings at the ports.

Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said global shipping has been affected by a number of recent crises that have dramatically increased transit times, causing a spike in shipping costs.

“The alternative route around the South African coast adds 4 000 miles (6 400km) and 10 to 14 days to the transit time from the Far East to Europe. This causes a massive growth in the marine traffic around the South Africa coast, and soaring freight rates.”

Hartwell added that the increased volumes in shipping around the coast has unfortunately not been to the benefit of the South African economy.

“Those ships cannot call at South African ports for fuel, crew changes or to use them as a transit hub because our ports are inefficient, subject to many delays and unable to deal with additional volumes due to all the well-publicised problems.”

Professor Mihalis Chasomeris, a port and maritime economist at the Graduate School of Business and Leadership at the University of KwaZulu-Natal, said despite progress made by Transnet National Ports Authority (TNPA), a lot more work is needed.

“There is renewed optimism in the private sector and stakeholders are pleased with some of the developments they have noted in South Africa’s ports.

“Nevertheless, a significant amount of work and investment is still required. There have been decades of under-in-vestment in our ports, which require interventions and will take time to resolve,” Chasomeris said.

He added that port terminals require greater investment in new equipment and better maintenance.

“Our government does not have much influence over global developments and freight rates, but it has significant influence over investments into our ports.

“We can make wise decisions to invest in our ports, invest in our people, improve our port productivity and reduce the costs of doing business in and from South Africa,” he said.

Casey Sprake, of Anchor Capital, said inefficiencies at South African ports are severely hampering the economy by causing delays, increasing costs, and disrupting supply chains.

“These issues lead to congestion, higher shipping rates and missed trade opportunities, making South Africa less competitive in global markets.

Addressing these inefficiencies is critical for improving the country’s overall economic performance.”

Gavin Kelly, CEO of the Road Freight Association (RFA), said the Red Sea and some surrounding areas are no longer as safe as they used to be.

“The RFA has noted from various logistics supply chain players that this could mean more business for South African ports. This does not necessarily mean that ships normally passing through the Red Sea would now drop or load cargo, but it means the opportunity to resupply (fuel, fresh foodstuffs, and other items), or even for mechanical and or repair considerations from port facilities.”

Kelly said that the state of our ports is well-known across the world with reports of lengthy delays, poor service, and backlogs.

“A long road lies ahead of the ports in the recovery of their past glory, and the other ports around Africa are fast improving and bettering their offering.”

Andile Sangqu, chairperson of the Transnet board, said on Friday that TNPA is in the process of executing a number of actionable steps to halt the decline in operational and financial performance through their recovery plan.

The Mercury