According to Jabu Mdaki, CEO of Transnet Port Terminals (TPT), the consistent influx of new equipment, along with better ties with important original equipment and part suppliers and shipping lines, has led to a stabilization of operations at terminals that experienced unheard-of and expensive congestion just over a year ago.
The largest and busiest container terminal in the nation, Pier 2, of the Durban Container Terminal (DCT), had a 20-vessel backlog at one point, and the outlook for recovery appeared dire in the beginning of 2024. According to the South African Association of Freight Forwarders, the accompanying congestion costs were substantial, amounting to at least R124 million per day.
Mdaki told Engineering News that he is cautiously optimistic that the 10,000-employee Transnet unit has now firmly gone from stabilization to recovery, even if he acknowledges that dangers still exist, especially during times of bad weather.
The immediate objective at DCT Pier 2 is to increase annual volumes from around 1.6 million twenty-foot equivalent units (TEUs) to approximately 1.75 million TEUs, in contrast to a nameplate of approximately 2 million TEUs. In order to achieve this, gross crane movements per hour—which are currently between 18 and 20—must rise to 25 in the near future. A formal target of 30 gross crane movements per hour has been set for the entire TPT by 2030.
The completion of a 25-year joint venture with International Container Terminal Services Incorporated (ICTSI), of the Philippines, which was chosen as the terminal’s preferred bidder in July 2023, was initially the cornerstone of hopes for attaining such efficiencies at DCT Pier 2.
The issue is still pending, though, as Transnet’s choice of ICTSI is being legally challenged by APM Terminals, AP Moller-Maersk’s port operating firm and a competitor for DCT. In order to stop DCT’s downturn and start improving performance at both Pier 2 and the smaller Pier 1, which together handle roughly 60% of South Africa’s container traffic, Mdaki claims it became imperative that TPT increase its expenditure.
This is why the majority of TPT’s R21 billion, five-year investment budget is going toward an equipment overhaul at DCT, starting with the landside equipment and gradually moving on to the marine-facing equipment as well. When DCT began accepting deliveries of the more than 100 pieces of new cargo-handling equipment that are expected to be delivered during the 2025 calendar year, it was an obvious indication of the progress being made.
By the end of May, 20 Konecranes straddle carriers—12 of which are already in possession—will be transported to Pier 2, while 16 Liebherr rubber-tyred gantry cranes will be brought to the Pier 1 terminal. Additionally, 16 rubber-tyred gantry cranes will be supplied to Pier 1 between April and December, while four Liebherr ship-to-shore cranes, eighteen Terberg haulers, and fourteen Toyota and Konecranes forklifts are planned to be delivered to Pier 2.
The other container terminals owned by TPT are also undergoing an equipment recapitalization. Eight forklifts and parts for the 28 rubber-tyred gantry cranes will be shipped to Cape Town, and a ship-to-shore crane investment is planned for Gqeberha, Port Elizabeth.
Its dry-bulk terminals, like Richards Bay, which will receive 17 haulers from Terberg, are also receiving investments. TPT is preparing private sector partnership (PSP) proposals for a new manganese port at the Port of Ngqura and a mega chrome-ore terminal in Richards Bay as part of the government guarantee and freight logistics agenda. TPT plans to invest almost R4 billion a year over the next five years in its three inland terminals and 16 marine cargo ports, where additional PSPs are also being evaluated.
