Abysmal ranking of Transnet ports underscores long haul to fix key logistics operations and infrastructure

South Africa’s ports, operated by state-owned transport group Transnet, are in the spotlight once again for all the wrong reasons. They have been ranked at the very bottom in terms of global operational efficiency and competitiveness. 

This is yet another indication that the recovery of Transnet’s logistics operations is set to be a long haul after being hobbled by years of negligence, lack of maintenance and corruption. 

Using data from 2023, the World Bank and S&P Global Market Intelligence tracked the performance of 405 ports in the US, Canada, Central and South America, the Middle East, Asia, Australia, New Zealand, the Pacific Islands, Europe, the Caribbean and Africa.

These ports were ranked in terms of efficiency through the Global Container Port Performance Index. The measure of efficiency looked at capacity or space utilisation at port terminals, costs paid by customers to move their goods through ports, and container loading and waiting times.

Ports in South Africa have been found seriously wanting as they ranked at the very bottom of the index. 

The ports in Cape Town and Ngqura (in the Eastern Cape) were the worst performing and least competitive in 2023, ranking 405th and 404th, respectively. In other words, these two ports were ranked last and second-last out of the 405 that were assessed. 

The Port of Durban, South Africa’s largest and busiest (handling 60% of the country’s container volumes), was ranked 399th.  

Durban’s port is important for the economy as it lies on international shipping routes between the East and West. The port is also linked by rail and road infrastructure to Gauteng and extends to other major trade corridors.

The highest-ranked South African port on the index was that of Port Elizabeth (now Gqeberha), which was ranked 391st. However, the port remains near the bottom of the list.

In 2022, at least 348 ports were ranked on the index. At the time, Cape Town still did poorly in the 344th position, with Gqeberha ranked 291st and Durban 341st.

A well-functioning port system is a crucial cog in any country’s economy. 

Transnet’s ports are responsible for moving steel, agricultural and automotive goods, among others, that are produced in South Africa and exported around the world. 

When Transnet is dysfunctional, businesses in South Africa operate inefficiently and the country's exports suffer in the process. 

Well-run ports are also important for Transnet to attract global customers that would land their goods in the country. After all, more than 80% of global merchandise trade (by volume) is transported via sea routes. 

However, Transnet’s financial and operational problems have meant that it has neglected investments in its ports to improve them, resulting in global logistics companies choosing more efficient ports in other parts of Africa to offload their cargo.  

Read more in Daily Maverick: Transnet’s critical operation and financial situation extends from bad to worse

The Somali ports of Berbera and Mogadishu were ranked 103rd and 176th, respectively. 

The Port of Conakry in Guinea came in at 208th.

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