The main factors affecting port operations were bad weather, equipment failures, and shortages. While there were few reported delays this week, operational performance at the Port of Durban was hindered by power outages and shortages of equipment. In Cape Town, however, operations performed somewhat better. We experienced operational delays at our ports in the Eastern Cape due to unfavorable weather and network problems. The first container terminal to be developed and run at the Port of Richards Bay on the northern KZN coastline has been awarded to Grindrod, a logistics business listed on the JSE. There were also not many reports from TFR this week, but those that were received said there were no significant issues on the train network.
Key Notes:
- An average of ~8 211 containers was handled per day, with ~8 462 containers projected for next week.
- TNPA stats for May: containers are up by ↑30% (m/m) and ↑8% (y/y). Total bulk is up by ↑11% and a considerable ↑35% – highlighting the improvement. Vehicles are down monthly (↓4%), but up yearly (↑8%).
- Rail cargo handled out of Durban was reported at 2 916 containers, down by ↓12% from last week.
- Cross-border queue: ↓0,1 hrs; transit: ↑1,2 hrs; SA borders: 9,9 hrs (↑3%); SADC borders: 3,8 hrs (↑52%).
- Freight rates continue to surge and are up by ↑6,6% (or $315) to $5 117/40-ft container.
- Global air cargo tonnages slipped by ↓2%, as average rates remained stable at $2,52/kg.
Port operations – General:
- Port operations were primarily impacted by inclement weather conditions, equipment breakdowns and shortages.
- This week, operational performance improved somewhat in Cape Town as minimal delays were reported, while equipment shortages and power outages prevented optimal performance at the Port of Durban.
- Adverse weather conditions and network issues ensured operational delays at our Eastern Cape Ports.
- Grindrod, a JSE-listed logistics group, has been selected as the preferred bidder by TNPA for developing and operating the first container terminal at the Port of Richards Bay on the northern KZN coastline.
- Additionally, minimal reports were received from TFR this week; however, the reports indicated no major incidents occurred on the rail network.
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