Transnet expands free import storage days amid operational challenges

SOUTH AFRICA – Transnet, South Africa’s major freight transport and logistics company, has increased the number of free import storage days at its Durban Container Terminal (DCT) Pier 2.

This change, effective from August 1 and lasting until October 31, 2024, comes as a response to ongoing issues with equipment reliability.

The new policy introduces different storage allowances based on vessel discharge volumes. Vessels with fewer than 1,000 units will now have 3.25 free days.

Those handling between 1,000 and 2,000 units will benefit from 4.25 free days, while vessels exceeding 2,000 units will have 5.25 free days.

This interim measure does not apply to reefers and International Maritime Dangerous Goods (IMDG) containers, which retain their existing rules as per the latest tariff guidelines.

A Transnet spokesperson explained, “The increase in free import storage days is a temporary solution while we work on improving equipment availability and reliability. Our goal is to optimize truck booking slots and turnaround times.”

The move follows significant operational struggles, including issues with equipment and infrastructure.

Transnet has faced challenges from underinvestment, theft, vandalism, and external disruptions like floods and the Covid-19 pandemic.

To tackle these problems, Transnet recently secured a ZAR 18.85 billion (USD 1 billion) loan from the African Development Bank (AfDB).

The loan, approved on July 12, 2024, is part of a broader ZAR 152.8 billion (USD 8.1 billion) investment plan aimed at overhauling Transnet’s infrastructure and expanding key segments in the transport chain.

The funds are crucial for Transnet’s recovery plan, which seeks to restore operational performance and meet growing customer demands.

Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization, highlighted Transnet’s importance.

“Transnet is the custodian of South Africa’s critical transport and logistics infrastructure. Our partnership will address operational inefficiencies and support the country’s freight logistics system,” he said.

Michelle Phillips, Group Chief Executive of Transnet, expressed her appreciation for the support. “This loan will be vital in stabilizing and improving our rail network, which is essential for the South African economy,” she stated.

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