Major upgrades for South Africa’s biggest transport company

South Africa’s largest transport company, Transnet, has committed more than R500-million to significantly improve its container shipping efficiencies at its ports in Cape Town, Durban, and Ngqura.

The Transnet National Ports Authority (TNPA) invested heavily in upgraded vessel mooring assets, adding eight hydraulic shore tension mooring units.

This investment is part of TNPA’s ongoing port infrastructure development programme, which aims to improve the safety of vessels and cargo handling operations in adverse weather.

Four of the eight units have been deployed at the Port of Cape Town’s container berths, bringing its number up to 14.

The ports of Ngqura and Durban each received two units, which are nearing the end of the
commissioning stage.

The latest delivery brings the total number of units that the South African port authority has taken delivery of to 32 of its 52 acquired units.

To date, this investment has reached R534 million and aims to significantly reduce delays in vessel movements at South Africa’s ports.

“These critical marine mooring assets come at acrucial time to respond to climate change, which results in strong winds of 35 to 50 knots and high sea swells exceeding 3.5 meters in our ports,” said TNPA Acting Chief Executive Mohammed Abdool.

These upgrades support Transnet’s goal of aligning its freight logistics business with key commodities to boost the local economy.

Transnet reported that South Africa’s container shipping sector is showing steady growth and is driven largely by agricultural exports.

Between April and December last year, TNPA recorded a container volume throughput of 3.4 million twenty-foot equivalent units (TEUs), which it said is 2.3% above budget for the period.

The port authority is anticipating continued growth in container volume throughput in hopes of reaching 4.5 million TEUs against an annual budget of 4.4 million TEUs in the 2025/26 financial year.

“TNPA’s investment in reliable port assets is vital to meeting the growing demand for container movements and increasing the value of service for customers,” added Abdool.

“This initiative aims to improve the ease of doing business for shipping lines and terminal operators, ultimately improving the turnaround time for cargo handling.”

More investment on the cards for Transnet

Earlier this year, Transnet entered into agreements with Belgian port entities in a bid to modernise South Africa’s port infrastructure.

According to Transnet Group Chief Executive, Michelle Phillips, the company attended the World Economic Forum (WEF) hoping to find new strategic partners.

She explained that Transnet is on a journey to improve skills at its ports, as well as the productivity and efficiency of its systems and networks, and that it is important for the world to know the journey is taking form.

“Unfortunately, with the challenges we have experienced, it has taken us back, but we need to catch up with the rest of the world, embrace innovation, and get our people on stream and aligned,” Phillips said.

She said that Transnet engaged with its international counterparts, as well as international investors, at the WEF to acquire the needed innovation and skills to aid in its recovery journey.

Further private sector investments into South Africa’s rail infrastructure include private rail operator Traxtion investing billions in locomotives and wagons.

The private operator announced a R3.4 billion investment in South Africa’s logistics sector, including R1.8 billion for locomotives and R1.6 billion for wagons, with the potential for spending to rise to R5.8 billion over time.

Regarding port upgrades, Phillips explained the partnership with Belgian port companies comes at a critical time as Transnet accelerates the modernisation of its ports.

“We will leverage global best practices to strengthen our ports’ strategic position as
gateways for regional and international trade,” she said.