Enhanced service a key strategic aim
ALTHOUGH slow container turnaround times and productivity issues at SA ports remain key negotiating points for liner operators, an ambitious programme is under way to bring the ports up to international standards.
South African Port Operations (SAPO) has reaffirmed its commitment to upgrading ports to meet global standards, allowing its customer base to benefit from the growth and profitability of their businesses.
Sapo was formed following the splitting of the Portnet parastatal into two separate business units within Transnet the port operations division and the port authority division.
Sapo will focus on cargo handling and operations at all SA ports, including Richards Bay, Durban, East London, Cape Town and Saldanha, while the port authority division will handle landlord, infrastructure and management functions.
Sapo management felt the organisation needed to be close to an operational base. Durban was chosen for Sapo's new head office because it is home to the largest and busiest port on the African continent.
The new business unit is headed by CE Tau Morwe. It is embarking on a R180m turnaround strategy that aims to consolidate the business and reduce costs.
'Our key objectives over the next three years are re-engineering our business processes, developing internal skills and raising customer levels,' he says.
The division is undergoing a three-year consolidation process, and phase one has just been completed, says Morwe.
Phase two of the restructuring includes spending R1bn a year on port development.
This includes container expansion and breakbulk handling, equipment modernisation, the introduction of an advanced information technology and management computer system and new construction and extensions to increase terminal storage and handling capacity.
Morwe says that by next year all of their port-based cargohandling businesses will be independent, self sustainable and able to realise business growth targets.
'We will be well positioned to meet external challenges, which include a 6%-plus year-on-year increase in containerised traffic through Durban.'
In terms of container handling, Durban is already close to full capacity, handling approximately 65% of the country's seaborne container traffic.
Morwe says that the Durban port's complex environment necessitated a comprehensive planning process to ensure that future large-scale development would be sustainable.
An overall development project is to be implemented in Durban over a four-year period.
The first component aims to inprove container handling capacity at the existing Durban container terminal by upgrading infrastructure and acquiring additional equipment.
This includes three new quayside cranes and the complete upgrading of the existing 60strong fleet of straddle carriers.
This will increase the capacity of the terminal from 1,3-million 20-ft equivalent units (TEUs) a year to 1,6-million TEUs.
Publisher: Business Day
Source: Business Day
Full steam ahead for ports upgrade
Posted On Wednesday, 20 March 2002 14:01 Published by eProperty News
Enhanced service a key strategic aim
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