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Transnet disputes damning container port report

Publish date: 17 June 2024
Issue Number: 1081
Diary: IBA Legalbrief Africa
Category: Maritime

Transnet, has raised concerns about the accuracy of the World Bank’s 2023 container port performance index, which ranked Durban and Cape Town among the world’s poorest-performing ports. A Business Day report says it also questioned the methodology the World Bank used to arrive at its findings and decried its failure to consult during the performance assessment, calling for an inclusive assessment to ensure the accuracy of the results. Transnet said it raised its dissatisfaction that the index relied on the duration of a vessel’s port stay as a primary performance metric, without considering the factors that influenced the duration of that stay. ‘Upon entering a port, a vessel is serviced by many role players before the actual loading and offloading of cargo, and these services contribute to the length of its stay,’ Transnet group CEO Michelle Phillips said. ‘The bank’s measurement of a vessel’s stay in port does not take into consideration throughput and other factors that determine the duration of a stay.’ Another point of contention was the World Bank’s purported use of automatic identification system and third-party liner shipping data without prior verification by the terminals. Transnet said that without allowing terminals to review and verify the data, the report could misrepresent performance, potentially damaging a port’s reputation. Transnet stated that it had been vocal about the need for an accurate and comprehensive performance index, which could be constructive if it accurately reflected the complexities of port operations. However, inaccuracies could be damaging, particularly for ports that already face operational difficulties.

Full Business Day report

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