South African port operator Transnet reports that it is moving forward with a fleet renewal program as part of an overall effort to address the long-standing challenge of inefficiencies that have led to the port being at the bottom of international rankings and leading to massive delays and congestion. Transnet National Port Authority said it would invest $52 million in seven tugboats for Durban and East London.
Cape Town Damen Shipyards has been awarded two contracts to deliver seven tugboats between April and August. The new tugboat will replace an aging vessel that has reached the end of its useful life. The company said the new tugboat will have the latest hull design and propulsion, as well as a 60-tonne bollard pull, which is a much-needed improvement compared to the bollard pull of existing tugboats with 32mt to 40mt bollard pulls. The new ship will also have a high degree of maneuverability when guiding large ships.
Captain Rufus Lekala, Chief Harbour Administrator of TNPA, said: "This investment demonstrates TNPA's continued commitment to providing reliable vessels in our ports, which will enable us to effectively serve the marine industry and respond to global shipping needs. ”
Durban is the largest container seaport in the country, handling about 60% of container traffic, with five tugboats to be assigned to Durban and two others to East London. Durban has received the most attention, highlighting the inefficiency of port operations. The Port of Durban experienced unprecedented congestion at the end of last year and peaked in the last week of November, when vessels carrying more than 61,000 containers were forced to remain at the outer anchorage due to operational challenges, equipment failures and bad weather.
The main reason for Durban's inefficiencies is the lack of investment in equipment and maintenance. An analysis by the Economist Intelligence Unit shows that while South Africa may have secured new business, its ports are constrained by inefficiencies, congestion and power** issues that prevent operators from taking full advantage of the Red Sea security crisis and increased maritime traffic flows.
"South Africa's predicament has prompted some shipping lines that use the Cape Town route for east-west** to look further afield for ** and refuelling services," the analysis noted. "South Africa's port problems directly benefit the ports of Tuamasina in Madagascar, Port Louis in Mauritius, Walvis Bay in Namibia, and other ports located in strategic locations on the Asia-Europe east-west route.
The investment in the tugboat comes at a time when South Africa** is driving other key steps, including the company's new management and the signing of contracts with international companies to operate terminals in its eight ports.
On February 28, Michelle Phillips and Nosipho Maphumulo were appointed CEO and CFO of Transnet. They will succeed Portia Derby and Nonkululeko Dlamini, who resigned last October due to pressure. Phillips has 21 years of experience in the company as Group CEO. Maphumulo joins the company from the private sector and, according to Transnet, is an "accomplished business leader, financial steward, operational strategist, change catalyst, and trusted advisor with extensive public and private sector experience." ”
Transnet plays an important catalytic role in the South African economy. We are confident that these appointments will provide Transnet with strategic direction and the ability to execute ongoing reforms. Minister of Public Enterprises Pr**in Gordhan said.
Transnet's Board of Directors announced today (1 March) that it has completed financial due diligence for ICTSI, which was named the preferred bidder for a new public-private partnership at the Port of Durban in July 2023. The Board approved the continuation of the contract award to ICTSI for a 25-year joint venture with Transnet Port Terminals to develop and upgrade Durban's major container terminal.