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“Ninety percent of everything”

2015-03-03

Speaking at the recent EDGE (Economic Development and Growth in eThekwini)
Port and Logistics Seminar, Professor Trevor Jones stressed that as the title of the book â€œNinety percent of everything” states “just about everything” passes through the world’s ports . The Port of Durban remains a critical pillar of eThekwini’s economy and is considered a gateway into South Africa’s interior (especially Gauteng) and to its neighbouring countries. Durban Port is the busiest South African port; around 60% of the country’s imports and exports go through the port annually. According to Professor Jones, the port is characterised by a diverse traffic base and has a good location. However, port constraints include low productivity levels, which lengthen the time vessels are alongside and at times waiting time for berths. A general perception of the port is that of a high cost port for users, notably so in respect of port authority charges particularly
for cargo owners. He concluded that there were, “considerable opportunities to do better within the existing port”. International ports expert, Jamie Simpson, stressed that efficiency and cost reductions should be a priority. In his view it was also essential that existing port assets should be maximised prior to embarking on the “Big Dig”. He added that there were a lot of improvements needed at the current port, and these should go ahead “as a matter of urgency”. Irvindra Naidoo of Transnet reported that currently, 2.6 million TEU per annum moved through port, resulting in ±8000 daily container related heavy vehicle movements around the Bayhead Area. Currently 60% -80% of all cargo landed in containers leaves eThekwini Municipality. These figures are expected to increase in the future, all of which raise a number of concerns, however improvements are being planned for road, rail and port infrastructure.

A current concern is the need to make provision for larger vessels to make use of the Port of Durban. An immediate solution is the berth expansion and deepening
of Pier 2, which is planned to commence in 2016. This development will improve the safety, efficiency, capacity of Pier 2 and accommodate larger vessels. A feasibility study targeting the expansion of Salisbury Island is nearing completion,
with potential developments there planned to commence in 2017. The proposed development of the old Durban International Airport (DIA) site into a deepwater
mega container port is still at the pre-feasibility stage of the project. However, the possibility for business to leverage off the port was stressed. Jamie Simpson said
that a solution would be to create public â€"private partnerships to improve planning and coâ€"ordination. Professor Jones raised the possibility of injecting “greater competitive elements within the existing port landscape”. Such participation
could stimulate competition around the fringes of existing terminal operations an example would be in the use of private floating cranes to improve efficiency. The elimination of licensing restrictions on cargo types is the most important factor in creating competition. In addition, allowing private participation and competition
when establishing new facilitie could drastically improve the current business model to the benefit of port users and other stakeholders. The Port and Logistics Seminar was held on 19 February 2015 at the Moses Mabhida Stadium. This was a joint session between EDGE, the Economies of Regions Learning Network, TIPS and Municipal Institute of Learning (MILE).

More information : http://www.durban.gov.za/City_Services/Economic_Development/PSIR/Pages/EDG E-Portand-Logistics-Seminar-19-February




“Ninety percent of everything”

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