Durban Container Backlog Snarls Cape Town Port Operations as Exporters Sound the Alarm
SA ports affected by Durban anchorage waiting time of up to 23 days.
Operational delays at the Port of Durban are impacting Cape Town Port operations, adding to frustrations felt by local exporters.
Durban Port currently has a vessel bottleneck due to problems at its Gateway Terminal, which is operating under severe capacity constraints following the appointment of an international private terminal operator.
International Container Terminal Services, Inc. (ICTSI), a global port management company based in the Philippines, is reportedly battling severe equipment shortages, specifically straddle carriers needed to lift, move and stack shipping containers.
It is unclear to what extent ICTSI inherited the equipment and maintenance shortfall from previous operator Transnet Port Terminals, which is now ICTSI's joint venture partner. What is clear is that the terminal is scrambling to reduce the backlog, with well below the estimated 70 straddle carriers need. "They simply can't run the terminal with half or sometimes less than half of that number (of straddle carriers) - and productively falls as a result," the source said.
As container ships bypass Durban or sit anchored outside the Port, regional shipping schedules across South Africa's port network are being disrupted, directly cascading into Cape Town’s berth availability and equipment allocation.
"The impact of the delays at Durban Gateway Terminal are having a huge impact on our port – look at the number of vessels alongside both CTCT and CTMPT is proof of this, confirmed Exporters Western Cape Chairman Terry Gale in a memo to EWC members. "We are acutely aware of the cost to the Western economy as being a reliable supply source and orders that cannot be fulfilled and deadlines met!"
"Why does Cape Town have to suffer? EWC brought this question to the weekly stakeholders and the Port Liaison Forum yesterday – TNPA is acutely aware of our concerns," Gale said.
ICTSI was appointed to manage and modernise Durban Gateway Terminal (previously Durban Container Terminal) in a joint venture with Transnet Port Terminals.
The company appears to have been ill-prepared to take over operational control from TPT, possibly due to the Court Case disruption (Maersk's terminal operating arm, APM Terminal, challenged Transnet over how CTSI calculated its solvency ratio during the tender process).
The resultant knock-on impact on Cape Town comes as Cape Town port stakeholders reputational damage caused by a low global container port ranking. Gale said Cape Town Port performance has shown welcome recent improvements, despite the negative publicity.
To address these cascading systemic challenges, the Cape Chamber of Commerce and Industry continues to actively represent business interests and promote operational solutions through its engagement in the Cape Town Port Liaison Forum.