KZN ports help achieve bulk export record for SA

THE KwaZulu-Natal ports of Durban and Richards Bay helped South Africa achieve a record bulk export volume of 16.7 million tons last month as volumes rocketed up by 30.7% year-on-year.

This eclipsed the previous record of 16.4 million tons set in January 2015. Last month’s record was set despite a severe storm that disrupted port operations in KZN.

The record exports are due to increased overseas demand as the world is achieving its highest economic growth since 2011.

The German-based Ifo Institute World Economic Climate, for instance, rose to 17.1 in the fourth quarter from 13.2 in the third quarter and -0.7 in the fourth quarter last year to reach its highest level since the second quarter of 2011 when South Africa’s economy was growing above 3%.

This brought the increase in bulk export volumes for the first 10 months to 7.5% year-onyear after a 2.8% drop last year to 163.3 million tons.

The better performance this year may mean that the South African economy, in common with the rest of the world as shown by the Ifo survey, is doing better than the consensus forecast, as economists have failed to recalibrate to the improving momentum of growth after a series of growth disappointments in the past few years.

Richards Bay is responsible for the majority of South African bulk exports, while Durban is responsible for the majority of bulk imports and container imports.

Bulk exports from Richards Bay, which are mostly coal, grew by 13.3% year-on-year last month to 8.5 million tons, which was slightly down on the 8.7 million tons exported in September.

The storm disruption was reflected in the Durban statistics. Bulk imports fell by 19.9% year-on-year or by almost a fifth, while full containers imported dropped by 17.9% and full containers exported declined by 17.1%.

This loss will be felt by anxious manufacturers and retailers as they gear up for the peak Christmas retail season.