Fixing ports and rail ‘will spur intra-African trade’

Fixing SA’s ports and rail, which have been in precipitous decline, will result in the increase of local exports to the African market under the African Continental Free Trade Area (AfCFTA), says President Cyril Ramaphosa.

The decline of the country’s ports and rail network, operated by state-owned logistics company Transnet, has resulted in more goods being transported on SA’s roads, causing congestion and damage to them.

The port disruptions in Durban, Cape Town and Richards Bay, which peaked in December, have not only robbed the economy of much-needed export receipts but have also tarnished SA’s reputation as a reliable trading partner, and risk eroding its trade competitiveness in the global economy.

However, Ramaphosa wrote in his weekly newsletter on Monday that the tide is turning with the implementation of the government’s freight logistics road map, which was approved by the cabinet last year, and the establishment of the national logistics crisis committee.

“We have also established corridor recovery teams, which bring Transnet, the private sector and independent experts together to improve the performance of strategic rail and port corridors,” Ramaphosa wrote.

“This single-minded approach to improving performance is already showing results. For example, the number of ships waiting to berth at the Port of Durban — which has experienced severe congestion in recent months — reduced from more than 60 ships in midNovember to just 12 ships at the end of January.

“Seven new cranes, which are used for moving and stacking containers, were delivered to the port last month, and the number of work shifts is being increased to improve vessel turnaround times,” Ramaphosa said of the progress made at the Port of Cape Town.

“A key milestone in this reform journey will be the implementation of ‘open access’ to the freight rail network, which will allow private rail operators to invest alongside Transnet Freight Rail for the first time.

“Another key step is the introduction of strategic partnerships in container terminals, which will enable new investment to expand port capacity and upgrade equipment.”