Reports indicating that shipping lines are considering a $50 congestion surcharge at the Durban Port could cost the economy about R500-million a year, says the official opposition’s public enterprises spokesperson Martin Stephens.
Stephens said on Monday: “The additional costs for consumers could be much more. The problem came about because the [ruling] African National Congress missed the ship with long-term capital expenditure planning.”
Stephens said: “With the promised effects of AsgiSA [Accelerated and Shared Growth for South Africa] still having to be felt, it is quite likely that congestion at South Africa’s ports is to remain a problem over the medium term. The challenge now is to ensure that efficiency is maximised within the current capacity constraints.”
He suggested taking five steps “in order to achieve this”:
First, South African Port Operations, the National Ports Authority, Transnet and the government need to set up a joint task-team to oversee the reverse of the crisis situation at the Durban Port.
Second, he said, a reduction in cargo hold-ups from up to 70 hours down to not more than 16 hours “should be targeted”.
Third, crane productivity, berth utilisation rates, the number of containers moving through per month and the number of container movements per crane hour should be constantly monitored to identify the development of bottle-necks and ensure immediate response.
Fourth, the use of labour-intensive working methods should be employed wherever possible to compensate for the slowing effect of ageing and insufficient infrastructure and equipment. “Additional labour could be employed under the expanded public works programme and any additional costs could be offset against savings to the economy in penalties avoided and the increased number of employment opportunities provided.”
Five, in the face of the burgeoning demand for and the lack of logistical efficiency at our country’s ports, Stephens said, the state “needs to reconsider opening up South Africa’s port operations for increased private sector involvement and investment. There is no need for the South African government to reinvent the wheel.”
He said Singapore’s port authority, for instance, “is internationally renowned for its efficiency and has expressed firm interest in doing business with South Africa”. — I-Net Bridge