Posted on March 3, 2025
Investment aims to improve efficiency and ease congestion at one of South Africa’s busiest ports.
On Thursday, at the Durban Container Terminal, Transnet unveiled the first batch of new equipment, including straddle carriers and rubber-tyred gantry (RTG) cranes. The delivery of this R892 million fleet marks the first step among more than 100 new cargo handling machines expected to boost operational capacity at the port this year. Michelle Phillips, Transnet’s group chief executive, highlighted the necessity of these upgrades. “The existing fleet at Durban Container Terminal’s Pier 1 had been installed 18 years ago and was way past its lifespan of 15 years,” she explained.
The newly acquired equipment includes 20 straddle carriers for Pier 2 and nine RTG cranes for Pier 1. These machines started arriving in December 2024 and will continue to be delivered until May 2025, aiming to significantly alleviate the bottlenecks experienced during operations. According to Phillips, investing in this type of machinery aligns with Transnet’s recovery plan established after the company reported R7.3 billion losses during the 2023-24 financial year. This loss stemmed largely from inefficiencies rooted in the infrastructure’s degradation during previous state capture years.
Concerns about delays and congestion at the port have been exacerbated as seen last October, when more than 20 vessels were waiting outside for entry. “The cost of those delays is added to the goods we are importing, affecting prices for everyday consumers,” Phillips asserted. She stressed the importance of getting the port back to optimal performance levels: “When you walk to Mr Price, Foschini, or Woolworths, the high prices can be attributed to our inefficiency at the ports.”
Earl Peters, the executive manager at Durban Container Terminal, expressed optimism about the new equipment’s impacts on operations: “This will allow us to operate near the design capacity of the respective terminals. I’m confident Pier 2 can handle between 2 to 2.1 million TEUs [twenty-foot equivalent units] per year.” This is especially important, as last year Pier 2 processed 1.7 million TEUs, which made up 60% of South Africa’s container volumes.
Continuing with the announcement, Peters noted the augmented capabilities would help manage the high volumes of cargo arriving at the port. “My team has had to work with equipment failing on numerous occasions, yet we are still pushing to meet performance targets,” he said, eager to underline the improvements these updates could facilitate.
Transnet’s chairperson, Andile Sangqu, reiterated the necessary turns the company is attempting to effectuate. He, too, acknowledged the late start on these upgrades but reinforced the intentionality behind this investment plan. “We started with this delivery. Some of the equipment has already been commissioned, and we are working steadily to bring them all online by December this year. I believe by this time next year, we should be operating at full throttle with this equipment,” Sangqu claimed.
This quote highlights the importance of the project’s execution, as inefficiencies cannot simply be laid bare; they must be addressed systematically and comprehensively. Sangqu described the current level of congestion at South Africa’s ports: “The previous board’s failure to act left us struggling with systemic issues,” indicating the depth of issues this investment seeks to rectify.
Despite the challenges still looming, including potential government bailouts cited as high as R50 billion, Sangqu stayed focused on the long-term improvements expected from Transnet’s planned enhancements. “We understand this is complex and multifaceted, but the investment marks the right direction for the improvements of our operations, keeping productivity and employee morale high,” he said, addressing stakeholders’ concerns over financial transparency and operational success going forward.
Overall, Transnet’s significant investment, particularly at the Port of Durban, signifies hope for transforming the efficiency of logistics and trade within South Africa. This upgrade has the potential to not only improve the operations of the port itself but also to have far-reaching economic impacts as the country looks to bolster its trade competitiveness across the continent.
