OVERVIEW OF THE SOUTH AFRICAN PORTS
4.2 The container sector
4.2.2 Overview of each container port terminal in South Africa
vessels and short-shipments of cargo due to incorrect stowage planning. For import cargo, the biggest contributor to longer dwell times is the customs blockages, cheap storage at terminal and customers not checking arrival notices in time. For trans- shipment cargo, dwell time is influenced by failure to meet vessels’ connection between the pre-carrier and the nominated on-carrier. The average dwell time set for all container flows, by the terminal operator, is about three days, which is the most efficient in sub-Saharan Africa4, where most terminals have twice as much dwell time. Export cargo dwell time is set for five days whereas import cargo is allowed a free dwell time of three days. Trans-shipments, on the other hand, are allowed a free dwell time of up to 10 days, which will allow for longer waiting periods to meet connections.
The truck turnaround time refers to the average time it takes a truck to enter the gate, get served and exit. The average truck turnaround time target is set at a maximum of 35 minutes from the time the truck passes through the terminal gate until it exits the port. This indicator is necessary for optimising yard operations and for allowing the truck’s operation to be within its predetermined times in order to reduce any potential congestion in the terminal yard.
container volumes, which amounted to 2.66 million TEUs handled in 2014. Pier 1 container terminal consists of three berths, with an alongside water depth of 12.5 metres, and it is equipped with a total of six super-post panamax gantry cranes backed by a fleet of Rubber Tyred Gantries cranes in the stacking area. Rail and road access is also seamless out of Pier 1. The terminal has a nominal capacity of 700 000 TEUs per annum. Pier 2 container terminal consists of seven berths, with an alongside water depth of 12.8 metres (planned to be increased to 16 metres), with a fleet of over 100 modern straddle carriers, 19 shore side gantry cranes in service as well the new three of a total of seven tandem lift ship-to-shore cranes with a capability of loading or offloading 85 containers in an hour.
4.2.2.2 Cape Town Container Terminal (CTCT)
CTCT is the second largest container facility in South Africa consisting of a quay length of 1 137 metres, total ground slots of 5 250 and 3 751 reefer points. The terminal has a total of seven berths, a water depth alongside of 15.5 metres, employs eight ship-to-shore gantry cranes, 10 straddle carriers, 28 RTGs and has a capacity to handle a total of 900 000 TEUs. CTCT serves mainly the fruit export market and has been also providing trans-shipment services from the West African and South American regions.
4.2.2.3 Port Elizabeth Container Terminal
The Port Elizabeth container terminal serves the immediate hinterland of the Eastern Cape including all automotive manufacturing and assembly companies as well as agricultural products targeted for exports. The terminal consists of three berths totalling 635 metres, with 11 metres of water alongside, and is equipped with five shore side gantry cranes backed by 4 800 ground slots and 212 reefer points. The terminal has direct road and rail access and handled a total of 389 638 TEUs in 2014 (TNPA Port Profile, 2014).
4.2.2.4 Ngqura Container Terminal (NCT)
NCT is a premium trans-shipment hub capable of handling very large container ships (VLCS) and has a total capacity of handling 1.2 million containers per annum (Port Regulator, 2014/15). The terminal consists of four berths totalling 1.3km, a water depth alongside of 16.5m and is equipped with 10 mega-max ship-to-shore side gantry cranes, 40 RTGs and two straddle carriers backed by 60 hectares of stacking space and 1 680 reefer points. The terminal has direct road and rail access and has handled a total of 800 000 TEUs to date (TNPA, 2013).
Among the key strategic objectives of the ports authority and the terminal operator, growth in volumes and market share as well as increased efficiency and port productivity are regarded as priorities. The concern is to optimise the use of assets in order to achieve the targeted return on investments, optimise customer service levels and minimise vessel turnaround time. In achieving these objectives, the port terminal operator has in place a service level agreement known as the Container Terminal Operations Contract (CTOC) with key customers, including container shipping lines on their specific trades, which outlines the expected performance levels – known as norms – linked to the volumes to be handled. These norms bind the parties to the contract to deliver specific targets based on the KPIs on the part of the terminal operator, and specific deliverables and responsibilities on the part of the shipping line.
It is important to mention that the CTOC is seen as critical to the success of the port performance and it is enforced by offering incentives to customers if they fully comply with the agreement and carry out port activities during the issued window period and clear cargo timeously from the port within agreed limits. Non-compliance with the CTOC agreement will result in the shipping line losing its window and will then be forced to queue on a first-come-first-served basis, causing delays and a ripple effect on the sailing schedules in other ports.
It is evident from these profiles of container terminals in South Africa that each terminal is different and the performance and productivity levels vary as a result of the different internal and external characteristics including layout, infrastructure, geology, cargo types and labour. Performance targets are set in line with the available infrastructure and the nature of trades and the different size of traffic passing through
terminals. In testing the set targets against the current port productivity levels, this research dissertation will analyse the average real time performance and productivity at all three container terminals and identify the performance gaps and related limitations in line with the presented baseline targets discussed in this chapter.