The ongoing congestion across the country’s ports is costing the economy up to R7 billion per day, with at least 35,000 containers reportedly stuck at sea.
This is according to the South African Association of Freight Forwarders, Mike Walwyn. He said the congestion could have been avoided if stakeholders made a bigger noise sooner.
Walwyn was speaking to eNCA on Wednesday as Transnet’s congestion crisis is bleeding the economy.
He said the backlog has a ripple effect on not only the port but also the job sector for truck drivers as well as retailers as they are waiting for stock. He said it could also lead to product shortages on the shelves.
Walwyn added that the economy is losing up to R7 billion per day.
The Durban Chamber of Commerce and Industry NPC has also expressed concern about the delays.
“We believe this delay is due to lack of equipment maintenance, failure to buy equipment, and run the straddles, stacks, and tugs effectively,” the Chamber said in a statement on Wednesday.
The chamber said the lack of maintenance and ageing equipment continues to disturb port operations.
“The Port of Durban is one of the busiest in Africa, but it is also one of the most congested. In 2017, the Port of Durban had about 112 straddles operating; since then, the situation has deteriorated,” the chamber said.
It said as organised business, it has closely monitored the situation.
“Since January this year, we have seen an exponential increase in delayed hours. In January, the delay was 39 hours, July 96 hours. August 194 hours and September 364 hours. This is unacceptable; businesses must bear the brunt of these delays,” the chamber added.
It added that the country does not have the “leisure” to fix the port within 18–24 months.
“We need an immediate solution. We need private-sector partnerships. As an organised business, we believe the shipping lines and Transnet must enter into a joint agreement, allowing the shipping lines to buy the necessary equipment and rebuild infrastructure. Through this investment, the private sector must be given an opportunity to recoup their investment through the relaxation of tariffs,” the chamber said.
IOL