Fleet+of+waiting+vessels+tells+a+story,+B+Day




 * Business Day, Johannesburg, 02 February 2006**

=Fleet of waiting vessels tells another story=


 * Nicola Jenvey, KwaZulu-Natal Correspondent**

THE bottlenecks developing in the Durban container terminal tell another story about the Transnet strike that has gripped the country’s two busiest harbours this week.

Claims, counterclaims and confusion abound, and there is little clarity on how many people stayed away at their unions’ behest.

The four trade unions — the South African Transport and Allied Workers Union, United Transport and Allied Trade Union, the South African Railway and Harbours’ Union and the United Association of SA — claim total compliance, while Transnet says its contingency plans minimised the effect of the mass action.

By midday yesterday at least 10 ships were bobbing at the outer anchorage waiting for clearance to enter the Durban harbour. At the height of the port’s congestion strife a few years ago, up to 25 ships waited to enter the harbour.

The bulk of the ships waiting yesterday were destined for the container terminal, which single-handedly accounts for 70% of the country’s containerised traffic.

A report distributed by shipping agent and logistics company Tall Ships shows the terminal was inching towards a 48-hour delay by the end of last week.

The closed gates outside the container terminal were the most telling evidence that areas under South African Port Operations’ (Sapo’s) control were crippled during the three-day action.

Three gangs — the men who operate the gantry cranes and straddle carriers — were spread across three berths in stark contrast to the 12 to 14 gangs that usually work a shift.

The car terminal continued operations as the ferry crews are not affiliated to the striking unions, but the remaining Sapo multipurpose and breakbulk terminals saw little work other than the lifting and loading done by private stevedores.

State-owned Richards Bay dry bulk and breakbulk terminals were similarly affected, while the privately owned Richards Bay Coal Terminal kept loading coal from its a 3-million ton stockpile, even though deliveries on the Spoornet line were interrupted.

The strike was due to end yesterday with normal operations expected from this morning.

Container Liner Operators Forum chairman Dave Rennie said the strike slashed operations in the Durban container terminal 75%. The terminal remains under threat of a $100 congestion charge from the shipping lines, lifted last May on condition average berthing delays stayed below 16 hours.

Sapo says clients will not be liable for import storage costs against ships delayed by the strike, but that is cold comfort for businesses whose containers were already in storage when the strike broke out and who remain responsible for their storage fees.

Durban Chamber of Commerce and Industry CEO Bonke Dumisa estimates the cost of the strike to business will “run into millions of rand”, and that exporting and importing firms face penalties for “circumstances out of their control”.

Manufacturers fear the delays will affect their bottom line. As the strike drew to a close yesterday, neither side seemed to be talking the same language, despite lengthy negotiations after the strike began as well as in the weeks running up to the mass action.

The unions have warned the action will move to Eastern Cape from February 13, Western and Northern Cape the following day and the remainder of the country from February 20. A national strike on March 6 is on the cards if the dispute remains unresolved.

The unions accuse the parastatal of being “arrogant and recalcitrant” in dealing with the proposed restructuring and disposal of noncore assets within the country’s transport sector.

Transnet spokesman John Dludlu called the meetings with unions earlier this week “constructive”, with both parties agreeing to continue discussions in a bid to find “common ground”. The parastatal however, remains committed to its plan to hive off units unrelated to its infrastrucure-owning activities.

Public Enterprises Minister Alec Erwin has said government “fully supports” the proposed restructuring of Transnet into a lean and efficient freight-focused company.

“It is absolutely essential that we proceed and do so with the requisite speed,” he says.

However, by aiming their opening salvo at the arteries of the South African economy, the unions could not have been more direct with their message.

The ripple effect the delays will have both in terms of individual profit and the impression put across to the international community will linger long after the issues that precipitated the strike have been resolved.

And the costs will borne by consumers down the line.


 * From: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A147711**

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