Transport Minister Barbara Creecy has warned that Durban's Pier 2 container terminal will take months to recover from its latest backlog. Speaking at the Frank Dialogue on South Africa's transport industry in uMhlanga, Creecy stated that new handling equipment expected to arrive in December and gradual improvements anticipated through February next year will help alleviate the congestion. The terminal, operated by Durban Gateway Terminal (DGT), has been experiencing disruptions since its move to the Navis N4 computer system in August.
The disruption at DGT has resulted in significant delays, leaving importers, exporters, and transporters facing additional costs. Creecy revealed that she counted 39 ships off Durban while flying into the city, compared to 32 on an earlier visit. Eight of these ships were associated with DGT, which operates at Pier 2. However, she cautioned against attributing every ship off the coast to that terminal's problems. Creecy emphasized that Transnet remains a partner in the terminal, despite the private operator controlling daily operations.
The implementation of the Navis N4 system has affected cargo movements, truck bookings, and vessel operations at Pier 2. Creecy acknowledged that the system changeover was poorly timed, creating a backlog that would take time to clear. She has visited the facility, as has Transnet's board chair, while the group's chief executive and chief operating officer inspected it recently. The operator is taking steps to improve performance, but additional equipment is needed to restore normal operations.
Creecy expects the incoming equipment to help restore performance over December, January, and February, rather than producing an immediate turnaround. She emphasized that the port needs to be recapitalized, with new equipment required to improve efficiency. Pier 2 handles approximately 46% of South Africa's container volumes, according to Transnet. The terminal has been operated by DGT since January under a 25-year partnership between Transnet and Philippines-based International Container Terminal Services Inc (ICTSI).
The congestion at Pier 2 is also being felt outside the port, with truck operators complaining of long waits at the gates and on surrounding roads. The Truckers Association of South Africa has warned that prolonged delays are placing smaller trucking companies under financial pressure. Trucks queued for kilometres outside the harbour on Tuesday, as severe thunderstorms struck Durban. Transnet's group chief operating officer, Solly Letsoalo, stated that the company has commissioned work on an intermodal freight system along the Johannesburg-Durban corridor.
The proposed intermodal system aims to link ports, inland terminals, and facilities where goods are transferred between trucks and trains. Letsoalo believes that existing tracks have the capacity for more freight, including cargo now travelling by road. However, he noted that the quality of the rail network is poor, with stolen copper cables, damaged electrical infrastructure, and manual signalling causing delays. Repairing these systems is more urgent than building new tracks, according to Letsoalo.
Creecy emphasized that Transnet will continue pressing the terminal operator for results. She stated that the company will be "on their case until things turn around." The minister and Letsoalo's comments highlight the need for improved efficiency and infrastructure at Pier 2 and the broader rail network. The situation at Durban's Pier 2 container terminal remains a pressing concern for the transport industry and the economy as a whole.
Key points
- The backlog at Durban's Pier 2 container terminal could take until February to clear.
- New handling equipment is expected to arrive in December to help alleviate congestion.
- The terminal's problems have resulted in significant delays and additional costs for importers, exporters, and transporters.
