TPT recovery on track but can be better, CE says

State-owned Transnet Port Terminals (TPT) CE Jabu Mdaki has expressed satisfaction with the company's progress in meeting its Phase 1 recovery plan targets, while also acknowledging the need for further improvement to align with global benchmarks and contribute more effectively to the recovery of South Africa’s economy.

Speaking at the South African Heavy Haul Association conference, in Johannesburg, on August 28, Mdaki reflected on the company's achievements during the initial phase of the recovery plan.

In terms of container handling, TPT achieved about 98% of its target, while iron-ore handling reached 91%. The manganese sector performed particularly well, surpassing its target, while automotive handling reached 94.8%.

The company exceeded its coal handling target by achieving 110% and magnetite handling was at about 93%.

However, Mdaki was adamant that TPT still had much room to improve.

“These numbers are great, now we can do better. And we need to do better,” he said.

Mdaki highlighted the company's performance in key performance indicators, noting that volumes alone could not be a sole determining factor in measuring a successful turnaround.

“The auto sector is one sector that we've been able to turn around and really embed the efficiencies in,” he said.

He pointed out that TPT's terminal operations in Durban, Port Elizabeth (PE) and East London had shown good performance in the automotive sector, with Durban handling both imports and exports, while PE and East London primarily served as export hubs.

In the bulk handling sector, TPT achieved about 96% of its iron-ore target, with the Saldanha Multi-Purpose Terminal showing significant improvement despite being a manual operation.

However, Mdaki acknowledged challenges at the PE bulk terminal, describing it as an old facility that needs debottlenecking and replacement to achieve an 85% target. However, the company achieved 101% of its magnetite target in Richards Bay, while chrome handling improved marginally to 92%.

Mdaki emphasised that the container sector remained an ongoing challenge for TPT, particularly in Durban.

“Where our core challenge is, is in the container sector. Even if you can show progress in these other areas, unfortunately, as TPT, you'll always be defined by what happens in the container sector, and, more specifically, what happens in Durban,” he stated.

He noted that Pier One achieved 79% of container throughput target, Pier Two 76%, Ngqura Container Terminal 79% and Cape Town Container Terminal 60%.

Looking ahead to Phase 2 of the turnaround plan, which is the focus of the current financial year, Mdaki outlined the targets.

By the end of the financial year, TPT aims to achieve a throughput of 4.4-million twenty-foot equivalent units, 56-million tonnes of iron-ore, 17.4-million tonnes of manganese, 151 000 automotive units, 4.4-million tonnes of chrome and 5.5-million tonnes of magnetite.