ICTSI sees major potential in DCT Pier 2 and has a clear view of how to unlock this
Reports carried recently by newspapers in South Africa confirm International Container Terminal Service Inc’s (ICTSI) positive view of the future for Durban Pier 2, the facility where it was selected by Transnet to partner with it to optimise the container terminal’s operations and business potential.
Hans-Ole Madsen, Senior Vice-President, Europe, Middle East and Africa is reported as saying, the port has a strong foundation and good infrastructure despite challenges in energy, crime and logistics.
“People, rightfully so, are disappointed at some of the things that have happened to South African infrastructure, but the reality is….it is a good port, it is a good terminal,” Madsen is reported as saying in South Africa’s Business Times. Further, that: “The roads and connections need to be maintained and they need to be managed, the locomotives need to be moving, but the core infrastructure is there. You cannot let yourself be clouded by the power crisis and by the security crisis,” he said. “If those are resolved the potential that it can unlock is tremendous. That is why we would like to be here.”
Madsen further confirmed that in-depth soundings have been taken with “all the big banks” in South Africa and there is a strong appetite to support the venture. He also acknowledged the negative reaction of unions when ICTSI was announced as the strategic partner, with the unions citing particularly lack of consultation by Transnet. It is natural, he said for people to be concerned about change. “It is our job,” he stressed, “to very quickly develop a level of trust.” He emphasised a primary goal will be to improve the port’s reputation which has suffered at the hands of ongoing inefficiencies and, step-by-step, rectify the problems and in the process make the workforce proud of being part of a revitalised and positive organisation…”so everyone who works there can feel they are on the right track.”
The Business Times coverage also provided insight into what ICTSI’s first actions would be after financial closure of its contract – set to be achieved by the close of this financial year. Initial steps will focus on achieving quick wins and notably the repair and refurbishment of equipment underpinned by an improved spare parts acquisition process. “This, said Madsen, “will be done to make sure the handling capacity increases, which is required for improved service delivery.” A review process would follow with the objective of simplifying how things are done. “This is a process that is very much focused first on the clients, then you get to the internal processes later on. For us this is what we do, we have a lot of experience. …we want to make sure everyone who works at Durban Container Terminal will be proud of working there. We want to change the perception, by doing that people will be happier, and more committed,” he explained.
In terms of larger capital works, the 25-year deal struck with Transnet will see the deepening of the North Quay berth with the objective of providing for the higher capacity vessels being introduced into African trade.
A new legal entity will be established to manage DCT’s Pier 2. Transnet Port Terminals will have 51 per cent and ICTSI 49 per cent.
ICTSI’s involvement in the key DCT Pier 2 operation represents an important first step in the wider involvement of the private sector in South Africa’s logistics sector with rail freight also on the agenda in this respect and the possible concessioning of rail operations in conjunction with coal and iron ore export operations.
