October 2023 | BUSINESS FLEET AFRICA
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push headline consumer inflation back
into a range of between 5.5% and 5.9%
for the next few months (latest print
for Aug 23: 4,8%). With a forecasted
diesel price increase of around R1.50/
litre in early October, the cumulative
increases over the three months August
to October could total just more than
R5/litre. The direct and indirect impact
of these increases is sure to have a
negative impact on the fragile state of
the South African economy.
The Sea Freight component, one
of the sub-sectors hardest hit by the
Transnet strike in October 2022, is still in
a gradual recovery mode and increased
by 3.1% on a monthly basis but remained
in negative territory compared to levels
of a year ago (-2.0% year on year).
Comparing the number of containers
handled during August 2023 to the pre-
strike level of September 2022 revealed
that the total is still 11.1% lower.
Container handling, however, increased
by 1.9% during August, whereas other
cargo handling declined by 0.6% on a
monthly basis.
The ongoing underperformance of
South African ports has been highlight-
ed again in recent media reports. The
Freight Forwarders Association, in a
weekly report on the cargo industry,
bemoaned the “desperately low”
handling of containers by Transnet’s
ports and detailed a variety of prob-
lems currently bedevilling them. Some
of the problems the report identified
included dismal straddle carrier avail-
ability in Durban, only one helicopter
being operational and persistent cable
theft on rail lines, leading to them being
closed for hours.
“While the recent announcement by
Transnet National Port Authority of the
privatisation of the Pier 2 container ter-
minal at Durban has created strong pos-
itive sentiment in an industry crying out
for better port performance, it will take
some time before a turnaround could be
expected. The Pier 2 terminal handles
72% of the Port of Durban’s throughput
and 46% of South Africa’s port traffic,
thus, a notable improvement could be a
game changer for the industry and the
economy at large, however, sometime in
future only,” says Jordt.
The Rail Freight sub-sector also
subsided further in August, remaining
deeply in negative territory on an
annual basis and declining by a further
7.0% year on year during August 2023,
which represents the 17th consecutive
monthly decline. The urgency of freight
reform has been reinforced in the
Operation Vulindlela update recently,
while stakeholders are raising their
voices on an ongoing basis to reinforce
the urgency of reforms needed.
Air Freight has been under pressure
for most of 2023 and declined by a
further 1.7% on a monthly basis during
August, while the sector remains just be-
low its position of a year ago. According
to the International Air Transport
Association (IATA), lower demand for
STATSSA LAND TRANSPORT SURVEY
Graph 3 Road vs. rail freight payload in total country (‘000 tons)
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The recent announcement of Pier 2 container terminal’s
privatisation in Durban by Transnet National Port
Authority has generated optimism in the industry,
but it will take time for significant improvements.
Pier 2 handles a substantial portion of Durban’s and
South Africa’s port traffic, making any improvements
a potential game-changer for the economy.