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Transnet Bailout as South African Port Backlogs Batter Economy

South Africa's Finance Minister Enoch Godongwana has released, with immediate effect, a guarantee facility of U.S.$2 billion (R47 billion) for ailing transport parastatal Transnet, in support of its recovery plan, including meeting its immediate debt obligations, the National Treasury has said.

This follows delays in container offloading at ports in Durban, Richards Bay and Cape Town that highlighted the crisis at Transnet, the state-owned enterprise that oversees rail, ports and pipelines in the country. Delays at Cape Town harbour were reportedly been cleared by December 1, 2023, writes Esther Rose for AllAfrica.

President Cyril Ramaphosa and Public Enterprises Minister Pravin Gordhan visited the Richards Bay port on November 23, 2023 where the president received a briefing from Transnet leadership on the current challenges at the port and the interventions under way to reduce congestion and improve efficiency, a government statement said.

The backlog for offloading and loading containers on and off ships, is expected to be cleared next year, impacting on stock delivered to retailers locally and overseas. The South African Freight Forwarders Association estimates that the congestion at the ports is costing the economy around U.S.$6 million (R124 million) per day.

Scrolla reports that Transnet authorities are putting the blame on the weather for disrupting the handling by cranes of ships docking in the chaotic ports of Durban and Richards Bay. Bonginkosi Mabaso from Transnet told the SABC's uKhozi FM that the equipment they use at their ports is affected by the weather. He said at the moment work was disrupted because of the floods that wreaked havoc in some parts of KwaZulu-Natal.

InFocus

Rodger Bosch/MediaClubSA

Container ships in Cape Town harbour (file photo).

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