Durban Ranked the Worst Port in the World, City Kicks in Recovery Plan
- Transnet has pledged to restore the glory of its container port after a World Bank report ranked it as the worst in the world
- Transnet unveiled an investment of nearly R1 billion in new cranes to replace older equipment at the Durban Container Terminal
- Transnet also reported an increase in volumes handled by the port after more carriers were commissioned for the port
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With 10 years of experience, Tebogo Mokwena, Briefly News’ Deputy Head of Current Affairs, has provided insights into infrastructure challenges and state-owned enterprises in South Africa, having worked at Daily Sun and Vutivi Business News.
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DURBAN, KWAZULU-NATAL — Transnet's R967 billion investment in the improvement of Durban's port is aimed at changing the port's perspective after it was ranked the worst port in the world.
According to Moneyweb, Transnet delivered four new ship-to-shore cranes worth R967 million to replace the older cranes at Pier 2 of the Durban Container Terminal. Furthermore, Transert has also reported an increase in volumes during this year's citrus season.
Philippine company to invest in the port
The investment comes after Transnet announced that its year-on-year volumes increased by 28.8%. Transnet also entered into a partnership with International Container Terminal Services Inc (ICTSI), a Philippines-based company, which will invest over R11 million to refurbish the port. ICTSI will have 49% control over a new entity, which will now own the port. Transet signed the contract with ICTSI for 25 years. The company intends to increase the annual capacity from two million to 2.8 million twenty-foot equivalent units (TEUs).
Why was Durban Port voted the worst?
The Durban Container Terminal Pier 2, Southern Africa's largest and busiest container facility, was ranked the worst port in the world. The latest edition of the Container Port Performance Index (CPPI). The report, compiled by S&P Global Ratings and the World Bank, ranked the port the lowest in waiting times and offloading. The report also ranked Coega Harbour in the Eastern Cape as the second-worst port in the region. Despite this, ICTSI's investment will upgrade the port. A total of 20 new straddle carriers were commissioned at Pier 2.
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Briefly News articles about Transnet
In 2023, Transnet set a target for itself to clear a 70,000 container backlog at the port. Delays were caused by red tape in procurement, which delayed the acquisition of the necessary equipment.
The Special Investigating Unit took Transnet and Nedbank to court in July 2024 after Nedbank allegedly benefited R3 billion from swap transactions. The bank reportedly cashed in on the interest rates in swap transactions, and the SIU approached the Johannesburg Magistrates Court to recover the money.
Trnanset loses R7 billion in 2023
In a related article, Briefly News reported that Transnet lost R7 billion in the 2023/2024 financial year. The loss was exacerbated by litigation costs from Sasol and Total.
Despite the loss, Transnet reported that its revenue increased by 11% in the same year. This resulted from its recovery plan initiatives, where 151 million tonnes were transported.
Source: Briefly News
