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Shutdown of Richards Bay terminal to exacerbate Transnet port issues - economist

19 October 2021 8:52 AM
Tags:
Transnet
Richards Bay
Richards Bay terminal

Breakfast host Refilwe Moloto chats to Minerals Council SA chief economist Henk Langenhoven about a fire that forced Richard's Bay port to shut down.
  • Minerals Council SA chief economist Henk Langenhoven says the closure of the Richards Bay port could worsen Transnet's inefficiencies
  • Transnet declared force majeure at its Richards Bay terminal after a fire last week

Image: © Leon Swart/123rf.com

Transnet's closure of its Richards Bay terminal will only add to existing delays at the port facility, says Minerals Council South Africa chief economist Henk Langenhoven.

The state-owned port operator declared a force majeure at its Richards Bay Bulk Terminal following a fire that broke out at the port last week Wednesday.

Langenhoven says Transnet has already been experiencing significant port inefficiencies due to delayed infrastructure maintenance.

With the existing slowdown of exports overall, he says "this is not good for solving the problem".

RELATED: No clear plan on how Transnet will fix port inefficiencies - SA citrus exporters

The Transnet terminal is where the fire broke out, and that impacts on chrome, and magnetite, and also coal imports for the steel sector.

Henk Langenhoven, Chief Economist - Minerals Council South Africa

The impact of course depends on how long this takes to recover [from the fire].

Henk Langenhoven, Chief Economist - Minerals Council South Africa

There's been a general slow down in rail and harbour throughput, a lot of it has to do with operational issues but we also get the idea that the slow pace of maintenance on rail infrastructure, rolling stock etc. has to a large degree caught up with Transnet and it's not something that you can fix quickly.

Henk Langenhoven, Chief Economist - Minerals Council South Africa



19 October 2021 8:52 AM
Tags:
Transnet
Richards Bay
Richards Bay terminal

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