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Bay businesses creak under strain of logistics crisis

Port Elizabeth port

Transnet


Large importers and exporters in Nelson Mandela Bay are feeling the unprecedented strain caused by the country's logistics crisis.

The Bay Business Chamber says its recent survey indicated that 88% of the respondents were not using rail to move their goods due to its unreliability and unavailability.

The survey further showed that over 75% of respondents had to transport their cargo to other ports due to shipping lines skipping the two ports in Nelson Mandela Bay.

The Chamber says this cost these companies an estimated R66 million to transport their cargo to and from the country's other ports.

Van Huysteen says the Chamber has noted that, for several months, before the current crisis and backlog at the Durban port, a number of the major shipping lines were already skipping the Nelson Mandela Bay ports.

"This was because the shipping lines, having already lost too many days at the Durban and Cape Town ports, could not waste any further days at the Port Elizabeth and Ngqura ports."

As part of mitigation efforts, to retain export business, some businesses in the Bay are currently transporting their goods via road to Walvis Bay and Maputo ports among others.

Van Huysteen says it is now vital that everyone with absolute urgency develop and implement practical solutions to mitigate the risks posed by both the logistics and electricity crisis.

"As organised business, we are committed to continuing to engage and collaborate with Transnet to find solutions to address both the short-term emergency issues, as we all the longer-term issues."