Durban Pier 2 backlog could take until February to clear, says Creecy - IOL
Transport Minister Barbara Creecy speaks at the Frank Dialogue on South Africa’s transport industry in uMhlanga, where she warned that Durban’s Pier 2 backlog could take months to clear.
Transport Minister Barbara Creecy says Durban's troubled Pier 2 container terminal will take months to recover from its latest backlog, with new handling equipment that she expects to arrive in December and gradual improvements anticipated through February next year.
Speaking at the Frank Dialogue on South Africa's transport industry in uMhlanga yesterday, Creecy said she counted 39 ships off Durban while flying into the city on Wednesday, compared with 32 on an earlier visit.
“When I landed… I was having a heart attack because I was counting ships,” she told delegates.
Creecy said she immediately contacted Transnet group chief operating officer Solly Letsoalo, who explained which terminals the vessels were using. Eight were associated with Durban Gateway Terminal (DGT), the private-sector-operated facility at Pier 2.
She cautioned against attributing every ship off the coast to that terminal's problems.
The disruption at DGT began after its move to the Navis N4 computer system in August, affecting cargo movements, truck bookings and vessel operations. Delays have persisted despite attempts to restore normal operations, leaving importers, exporters and transporters facing additional costs.
Creecy said that although the private operator controlled daily operations at Pier 2, Transnet remained a partner. She acknowledged that the system changeover had been poorly timed, creating a backlog that would take time to clear.
She said she had visited the facility, as had Transnet's board chair, while the group's chief executive and chief operating officer inspected it on Wednesday. The operator was taking steps to improve performance, but additional equipment was needed.
“The truth of the matter is that we got those partners because that whole port needs to be recapitalised. It all needs new equipment,” Creecy said.
She expected the incoming equipment to help restore performance over December, January, and February, rather than produce an immediate turnaround.
“So, I can't promise an instant fix, but I can say that we're satisfied that appropriate steps are being taken to fix the problem,” she said.
Pier 2, which handles about 46% of South Africa's container volumes according to Transnet, has been operated by DGT since January under a 25-year partnership between Transnet and Philippines-based International Container Terminal Services Inc (ICTSI). Transnet retains a majority stake while ICTSI controls daily operations.
During an inspection of Durban Gateway Terminal on October 2, Creecy said vessels were waiting an average of 8.3 days, against a 24-hour target. Officials then outlined plans for a replacement truck booking system, more rail movements and changes to container-yard operations. Those measures were announced before Thursday's dialogue.
Congestion is also being felt outside the port. Truck operators have complained of long waits at the gates and on surrounding roads, adding to pressure on routes used to move containers between Durban and Gauteng.
On Tuesday, trucks queued for kilometres outside the harbour as severe thunderstorms struck Durban, although the cause of the congestion had not been established.
The Truckers Association of South Africa has warned that prolonged delays are placing smaller trucking companies under financial pressure, leaving operators facing additional fuel costs, driver overtime and standing charges.
Letsoalo said Transnet had commissioned work on an intermodal freight system along the Johannesburg-Durban corridor, examining how railway lines and Transnet-owned land could link ports, inland terminals and facilities where goods are transferred between trucks and trains. The work would also consider opportunities for private investment in those freight facilities.
Letsoalo did not give a timetable for putting the proposed intermodal system into operation.
He maintained that existing tracks had capacity for more freight, including cargo now travelling by road. The national network could theoretically carry 250 million tonnes a year, he said, compared with nearly 170 million tonnes moved last year.
“The challenge we have is that its quality is very poor. It has not been maintained,” Letsoalo said.
He described stolen copper cables, damaged electrical infrastructure and manual signalling that can delay trains along the Durban-Gauteng route. Repairing those systems, he argued, was more urgent than building new tracks.
Letsoalo said the deterioration of freight rail had contributed to growing truck traffic on the N2 and N3.
“We have to move most of our bulk material on rail,” he said, adding that more containers should also be transported by train to reduce congestion. Trucks would continue to play a role, particularly over shorter distances.
Creecy said Transnet would continue pressing the terminal operator for results. “We're going to be on their case until things turn around,” she said.
