Transnet Port Terminals unveils R3.4bn investment to upgrade Durban Container Terminals

Transnet Port Terminals (TPT) announced on Thursday that it will take delivery of over 100 pieces of new cargo handling equipment at the Durban Container Terminals (DCT) in 2025.

This revelation came during an unveiling event at the Port of Durban, where new straddle carriers for DCT Pier 2 and rubber-tyred gantry (RTG) cranes for the Pier 1 terminal were showcased.

The investment surge includes 20 straddle carriers for Pier 2 and 9 RTGs for Pier 1, vital components designed to address the operational challenges that have plagued the Port of Durban in recent years, notably delays and backlogs affecting container and vessel movements.

TPT officials confirmed an investment of R3.4 billion this year alone aimed at bolstering their fleet, with DCT receiving the largest portion of these resources

Transnet board chairperson, Andile Sangqu, said the arrival of this new equipment was a major step in the State-owned logistics firm’s recovery plan.

“In October 2023, Transnet began implementing a recovery plan to address the operation decline, to which we have been implementing a set of tactical transformative initiatives to address operational challenges faced by the business and to optimise the operating divisions to drive efficiencies,” he said.

“Our recovery hinges on directly addressing the challenges that led to the decline in our performance; hence, investment in infrastructure is at the core of our plans. Investments such as this one lay the foundation for a more efficient and dependable Transnet. These investments underscore our commitment to take the necessary steps to ensure a well-functioning port infrastructure system.”

Sangqu added that recognising that collaboration was a vital cog in Transnet’s operational environment, and appreciated partnership opportunities to collaborate with the private sector in the overall upgrade of ports infrastructure.

Last year, TPT took delivery of 20 haulers, two reach stackers, one empty container handler, 10 trailers, two forklifts and eight straddle carriers.

It said other initiatives underway aimed at recovery included a robust maintenance regime on the existing fleet, an Original Equipment Manufacturer (OEM) strategy that has facilitated the speedy arrival of spares to improve the reliability and availability of equipment following National Treasury approval; and the addition of a fourth shift for the 24-hour operation.

Jabu Mdaki, TPT CEO, said that the unveiling of the equipment was not only a critical day for the Port of Durban but for the South African economy.

“75% of the cargo that is supporting the South African economy is going through the Port of Durban. DCT is where our two biggest terminals are Pier 1 and Pier 2. There has been an outcry from the country about the vessel delays and how it was impacting the economy. Factories were also complaining about delays in receiving material,” Mdaki said.

“With this investment, we are seeing the turnaround that everyone wants. We are now handling vessels more efficiently and reducing delays. These are hybrid RTGs we are investing in; they use less fuel, and they are similar to electric vehicles which can run on electricity and fuel. This will enable us to reduce our carbon emissions. This is not the last of the investment. We still have four ship-to-shore cranes which we have procured at a cost of R1.4bn and that will be commissioned in the second half of the year.”

Transnet Group CEO, Michelle Phillips, said that the arrival of the straddle carriers and rubber-tyred gantry cranes was part of a bigger rollout plan to enhance the operational capabilities of Transnet’s container terminals.

“In 2026, the Port Elizabeth Container Terminal will take delivery of 12 straddle carriers, while Cape Town will receive 28 RTGs and straddle carriers,” she said.

Phillips added that the equipment received would not only reduce the carbon footprint but were sustainable and will have a higher stacking capacity than any of the models before 2025.

BUSINESS REPORT