Highway congestion chaos suspends Richards Bay exports

You may also hearken to this podcast on iono.fm here.

Obtain the free LiSTN audio app on Google Play, Apple or here.

Interview begins on the 1:24 mark

JEREMY MAGGS: Transnet, by means of Richards Bay Terminal, has circulated a discover that it’ll droop the receiving of all cargo that is dropped at the port by way of highway freight, all due to highway congestion within the space. It’s reached what’s being termed as uncontrollable ranges. It’s a critical state of affairs.

Let’s discover the influence of that call with Gavin Kelly, who’s the chief government officer of the Highway Freight Affiliation (RFA). Gavin, we’re speaking Monday lunchtime; what’s the place proper now?

GAVIN KELLY: Good afternoon, Jeremy. Good afternoon to your listeners. Nicely, it appears that evidently we haven’t had very a lot progress. Transnet has contacted us, saying they want to have an pressing assembly with us, and I suppose that’s due to what we’ve been saying within the media.

However the issue is that the basis causes are nonetheless there, they haven’t disappeared, and we’ve had these causes mounting up one on high of the opposite during the last couple of years and we have to discover a resolution to that. That’s actually what we’ve acquired to do.

JEREMY MAGGS: Remind us of these root causes.

GAVIN KELLY: Nicely, there are most likely three very massive ones, Jeremy. The primary one is that there’s this collapse of rail. So now we have this enormous quantity of core commodities now being transported to the port by truck.

Secondly, the port was not constructed to take these commodities by truck. It was constructed to take it by rail.

So the entire infrastructure in that port technique of loading or offloading or getting onto ships must have an interface between the vehicles and this loading system.

Then lastly, the roads across the port and the entry factors into the port simply can’t take care of these 1000’s of autos which can be making an attempt to get out and in as a result of, after all, there’s different cargo that should get into the port that was historically coming by highway.

JEREMY MAGGS: Gavin, are you able to describe the scene for me?

GAVIN KELLY: Nicely, you’ve acquired lengthy queues of vehicles bringing coal or manganese or chrome, some form of mineral, timber. You’ve acquired these lengthy queues exterior of the port making an attempt to get by means of a really slim entrance, and it’s slim as a result of it wasn’t constructed to take steady a great deal of vehicles.

Learn: Durban port congestion headache

You’ve acquired a reserving system, which Transnet Port Terminals has applied to try to handle how the vehicles get in, and after they get in, the place they go. After all, throughout the port you’ve acquired a really, very small space, congested space as a result of nobody thought that this quantity of vehicles would come into the port to dump.

So now you have got this space which confines these autos in the best way through which they each enter and depart and the way they transfer round in that port.

So that you’ve acquired this space down at Richards Bay the place there are lengthy queues making an attempt to get in, lengthy queues, making an attempt to get out. There are items being offloaded within the port and there’s simply absolute chaos.

JEREMY MAGGS: And that has the influence of elevated security threat, I think about.

GAVIN KELLY: Sure, amongst many different dangers, you have got elevated security threat. You’ve acquired threat for these standing out within the queues. When you stand two or three days out in queues, you have got the possibility of being attacked. However, after all, inside as nicely, there’s this enormous scurrying making an attempt to get issues shifting backwards and forwards.

Learn: SA export route to Mozambique shut as violence erupts

JEREMY MAGGS: What do you wish to see achieved at this assembly if it goes forward?

GAVIN KELLY: Nicely, I feel to start with, we have to type out these large queues, Jeremy. You possibly can’t have drivers sitting in vehicles in every single place ready to get in and ready to get out. So I feel the very first thing we have to do is to discover a approach through which we will schedule these vehicles which can be working out and in of the port in order that we will have a spot for them to face safely away from the port. So now we have these choke factors shifting freely.

Learn: It will take months to clear Durban port backlog

The long run or can’t be long run, but it surely’s going be long run, the long-term resolution is to type out the rail to verify it may get this to port and that we don’t have the secondary knock-ons, which you’re seeing now occurring at locations like Lebombo, the place these enormous queues are actually showing.

JEREMY MAGGS: Do you have got any confidence in Transnet in with the ability to resolve this subject?

GAVIN KELLY: Brief reply to that Jeremy, no.

JEREMY MAGGS: So we’re in for the lengthy haul right here.

Learn: SA mines to get a faster route to Mozambique port

GAVIN KELLY: I feel we’re in for the lengthy haul. We’ve been saying to Transnet that there are key operations that you might want to give, or concession, to non-public sector. We had been speaking a couple of terminal down on the port of Durban, what number of months in the past, that was going over to non-public sector, and nothing has occurred. So that is going to take a few months sadly.

Learn:
SA wants to hand operation of rail, ports to business after $27bn loss
Transnet selects Philippines-headquartered port operator for Durban Pier 2

JEREMY MAGGS: And whereas that’s occurring, individuals are actually beginning to take authorized motion.

GAVIN KELLY: Sure, you see the native authorities are saying that their roads are being destroyed, that there’s a enormous security threat by way of visitors administration in making certain that the roads are safer, that different autos and different individuals can entry the port and entry the routes round it.

They’ve put their visitors officers onto longer shifts and, after all, that every one prices cash.

So these numerous authorities are saying, no, no, we will’t do that anymore and you might want to cowl the price, and hopefully drive them into some form of motion.

JEREMY MAGGS: Gavin Kelly, we’ve acquired one thing referred to as the Nationwide Logistics Disaster Committee (NLCC). What’s all that about?

GAVIN KELLY: Nicely, a few months in the past, Jeremy, the president (Cyril Ramaphosa), had taken be aware of various the logistics challenges, and I feel that is the best heartache for all of us is that what’s occurred at Richards Bay didn’t occur in a single day. It’s been coming and we’ve been saying it’s been coming, and we’ve been saying, you might want to repair sure issues just like the rails and the ports and the best way through which these function and the way they function.

A few months in the past, the Nationwide Logistics Disaster Committee was shaped. It has numerous legs to it or numerous components that handle numerous issues and the intention is to repair what we’re seeing. However for the time being we don’t appear to be getting anyplace in a short time.

JEREMY MAGGS: Sounds prefer it’s a waste of time.

GAVIN KELLY: Nicely, at this stage it seems to be prefer it’s a waste of time. There have been some crucial paperwork which have come out from it which have pointed at the place the challenges are. So there was some excellent work.

What actually now must occur, as at all times, Jeremy, is now we truly have to do what we have to do. Any person must be held accountable and someone goes to have to start out setting up these corrections which have been lacking for thus lengthy.

JEREMY MAGGS: Who’s that someone?

GAVIN KELLY: Nicely, at this stage, numerous components of the infrastructure we’re speaking about fall below numerous authorities departments or below Transnet. We now have seen that among the executives have left.

Pay attention/learn: Cosatu calls for competent leadership to revive Transnet

So the query is are they going to carry someone actually accountable or are they going to take that leap of religion that we’ve been pushing for thus lengthy to concession some components to offer it to the non-public sector in order that enterprise can get going.

JEREMY MAGGS: What are your members saying to you?

GAVIN KELLY: Nicely, enormous frustration. Their companies are actually struggling, and it isn’t at all times about making a revenue, however let’s face it, in case you don’t make a revenue, why would you be in enterprise?

So to start with, there’s enormous drain on assets by way of maintaining the wheels turning, the belongings, the vehicles, the drivers are being pushed to the top.

The drivers are actually shuttling backwards and forwards. They’re probably not getting any good relaxation intervals. Even in case you relaxation the required minimal relaxation intervals, these are lengthy and they’re very, very anxious journeys that they do. There’s at all times some form of battle. You by no means know what’s going to occur. So our members are saying that this must be resolved. We simply can’t preserve occurring like this.

JEREMY MAGGS: And only a closing query then, as all of this continues to unfold, the financial influence is changing into increasingly critical.

GAVIN KELLY: If we don’t export, we don’t generate income and sure, you’ll be able to say it’s companies producing income, but when they generate income, we generate tax, and tax means we will do the issues that we have to do.

Learn: Transnet dagger pointed at the heart of SA’s economy

Around the globe, persons are taking a look at us, and hopefully not laughing at us, however saying, if I can’t get my items out of South Africa by means of ports, I’m going to make use of a unique port, or what the heck, I’m going to go and purchase it from some other place.

JEREMY MAGGS: Gavin Kelly, thanks very a lot certainly, chief government officer of the Highway Freight Affiliation. Developing later within the programme, half two of the story as we take a look at the container chaos in Durban.

Hearken to the total episode here.