New infrastructure and incentives at Transnet Port Terminals aim to reduce congestion at SA ports
Transnet Port Terminals is undergoing significant operational changes, including new infrastructure investments and employee incentives, aimed at improving efficiency and reducing waiting times at South African ports.
Image: Leon Lestrade / Independent Newspapers
Transnet Port Terminals (TPT) is making drastic changes to its operations including investing in new infrastructure and worker incentives aimed at improving efficiency and reducing waiting times at the ports.
Jabu Mdaki, CEO of Transnet Port Terminals, briefed The Mercury on the changes at the ports during the KZN Business Futures Executive Breakfast hosted in Durban, Umhlanga, yesterday. He described the changes as a “game-changer”.
The breakfast was attended by several business dignitaries, including H.E. Nilvana Darama Yıldırımgeç, Ambassador of the Republic of Türkiye.
Dr Roger Latchman, Ambassador of Turkey Nilvana Darama Yıldırımgeç and CEO of Transnet Port Terminals Jabu Mdaki during a panel discussion at the business breakfast.
Image: Tumi Pakkies/ Independent Newspapers
KwaZulu-Natal Premier Thami Ntuli delivered a message of support via a pre-recorded video message. Around 100 senior executives, policymakers and investors convened to engage in discussions on trade, logistics and investment opportunities within the province.
However, the Road Freight Association said their members still experience challenges in accessing the ports.
Mdaki explained that leading up to the incentive structure, they started by changing the shift system to increase productivity. They switched from an 8-hour shift to a 12-hour shift, which required employing more people. This change was crucial to ensure that employees are well-rested and to reduce fatigue.
Once they implemented this shift change, the next step was to enhance productivity. Workers were given targets linked to their shifts. If they achieved these targets, they could earn an entry-level incentive, a medium incentive, or the premium incentive, which is at the top tier.
“Our incentive is designed to improve both the morale and productivity of the employees,” he stated. Employees can access real-time online updates to see how they are performing, with a clear indication of how many containers they need to move to achieve their targets. This has been a game-changer for them because everyone wants to earn.”
For a port like Pier 2, the entry-level target is approximately 1 500 containers per shift, the medium target is 1 800, and the premium target is 2 200. What they have observed is that everyone is striving to reach 2 000 containers.
The quicker they can load and offload containers, the quicker they can turn around the vessels, which is why they are seeing improvements in the rate of vessel turnaround. This has enhanced their productivity.
Mdaki noted that Richards Bay is designed to receive a significant amount of its cargo by rail. They have tippers to offload the cargo, but these are outdated and not as efficient as the new ones they need to acquire to offload the trains more quickly.
“Once the cargo has arrived, they need to mechanise the process. This involves having stackers to stack the cargo and reclaimers to reload it onto the ship as quickly as possible, instead of using front-end loaders.
“The loading rates are expected to improve from the current 1 500 to nearly 3 500 tons per hour, which will also help them turn the vessels around as quickly as possible.”
Recently, there have been concerns about delays at ports, leading to significant port congestion, particularly at the Durban Container Terminal. This impacts supply chain reliability and causes financial losses for the economy.
Premier Ntuli stated, “The ports are a critical part of the province's economy. KwaZulu-Natal is at an inflection point. The province is endowed with a productive industrial base, competitive ports, and a coastline that opens it to global markets.
“Our ports and logistics network is the economic lifeline of the province and the nation. Clearing congestion, modernising terminals, enhancing hinterland connectivity, and improving customs efficiency are not optional — they are essential.
“We are scaling operational reforms and opening opportunities for private capital and technological innovation to accelerate capacity upgrades. I invite logistics operators, shipping lines, financiers, and trade partners to join the government in a focused, time-bound partnership that yields measurable increases in throughput and a sustained reduction in the cost of doing business,” he said.
Gavin Kelly of the Road Freight Association said their members believe that the focus of TPT is to turn ships around as quickly as possible and reduce ship waiting time.He said the association had not seen much improvement in the landside activities at the ports.He said understandably, every day is different on the landside.
“There are days when road transporters still experience significant delays. Obtaining booking slots is also challenging, and trucks still queue.
“Transnet Port Terminals (TPT) needs to address landside and waterside activities in a similar way. The focus cannot only be on the waterside, but the tendency to focus on the waterside is greater, as TPT’s commercial agreements are with shipping lines rather than with road transport companies. So, whilst ships might have a shorter waiting period (even one day), not much has changed for road freight in getting cargo into and out of the ports.”