Logistics is one of the biggest drivers of an economy. However, if disrupted, it can significantly detract economic growth. This has been evident in South Africa since the COVID-19 pandemic and the associated Supply Chain Crisis.
Compounding South Africa’s economic challenges, the Port of Cape Town, a lifeline for the nation’s economic development, has been ranked as the world’s worst port. This is a significant setback for South Africa, a key player in the African economy, as it heavily relies on its ports to drive economic growth. The need to address this issue urgently cannot be overstated.
Poor performance
The article points out that SA dominated the bottom of the rankings of the world’s ports in 2023, throwing into stark relief just how much damage to the country’s competitiveness has been dealt by logistics dysfunction at operator Transnet.
According to the World Bank and S&P Global Container Port Performance Index for 2023, the Port of Ngqura in the Eastern Cape and Cape Town were the worst-performing and least competitive ports last year, ranking second-last and last on a list of 405 ports, respectively.
The article adds that the Port of Durban, South Africa’s largest port and handler of nearly half the country’s port traffic, was ranked 399th.
The World Bank index considered data captured from about 194,000 port calls (the total hours spent at a port) and 250 million container movements at 876 container terminals. It also includes time stamp information from the world’s shipping giants.
Top and bottom of the pile
The article adds that, according to the index, the best-performing port is the Port of Yangshan in China, followed by the Port of Salalah in Oman and Cartagena Port in Colombia.
In sub-Saharan Africa, the highest-ranking ports were located in Somalia, with the Port of Berbera and Port of Mogadishu occupying the top two spots on the list and ranking 103 and 176 globally.
The Port of Conakry in Guinea was the third best-performing port in the region, with a global ranking of 208.
In better news for South Africa, the article points out that the highest-ranked South African port on the list was the Port of Port Elizabeth, which was ranked 34th in the region and 391 globally.
Image By: Canva
Competitor rankings
The article points out that, meanwhile, close neighbours and competitors, the Port of Maputo in Mozambique and Walvis Bay in Namibia, were ranked at 14th (317 globally) and 32nd in the region (382).
The latest rankings have indicated a worrying trend in port performance in the country, with South African port rankings slipping compared to 2022 and 2021.
The article adds that, in 2022, Durban was ranked 341 out of 348 ports in the same index and Cape Town was ranked at 344. Ngqura was also ranked 338, and Port Elizabeth was again ranked higher at 291.
Sub-Saharan Africa also saw an average two-hour improvement in arrival time across all vessel sizes, with the African ports has been driven by Dar es Salaam, Monrovia, Douala, Pointe-Noire, Tema, Luanda, Lomé, Lagos, Port Victoria, Dakar, and Ngqura. The increase is slightly offset by increased average arrival time in Cape Town, San Pedro, Abidjan, and Mombasa.
Troubled waters
The article points out that port operators have continued to voice their concerns about operations around SA, including ageing infrastructure, a lack of equipment, productivity levels, and adverse weather conditions, which have led to increased vessel waiting times and congestion at port limits.
Last year, News24 reported that shipping liners had begun to implement congestion surcharges, with 19 vessels and thousands of containers outside of the Durban Port due to the performance at its container terminal, Pier 2.
The article adds that, however, Transnet Port Terminals (TPT) has since said the terminal’s operations have “stabilised”.
Vessel anchoring times also decreased from 18 days in October to four days (89 hours) in January this year at the terminal, it has said.
Image By: Canva
Reinforcements on the horizon
The article points out that port equipment, including haulers and straddle carriers (equipment used to move cargo containers around the port), is also set to arrive at the KwaZulu-Natal port.
Meanwhile, port performance in Cape Town last year also caused a disastrous start to the deciduous fruit season, threatening billions of rands in profits and causing a 14% decrease in fruit export volumes.
The article adds that the season, which runs between November and May each year, was forced to start behind schedule due to decreased productivity and vessel congestion. Exporters also sent 5 000 containers to alternative South African ports and Walvis Bay to ensure their fruit could arrive on time.
Clinging to hope
The content of the News24 article is a far cry from the battles of Vasco de Gama and Bartolomeu Dias, who were looking for a more direct route to India.
As we navigate this challenging environment, it’s worth pondering how the coalition government will tackle the Energy and Logistics crises. Both of these issues have been devastating for the South African economy. What strategies do you think are available to our politicians and lawmakers to address these pressing issues?
We live in interesting times.
