The impact of insufficient port investment on congestion in the Port of Durban.

Abstract

Port research is continuously evolving. One of the most relevant topics related to the performance of ports is port congestion. With Durban being the trade hub for ports in Southern Africa, the congestion experienced at the Durban Port poses a serious challenge to the effective integration of international trade with sub-Saharan economies. One of the problems evident from underinvestment made to the port, is congestion. Problems that stem from congestion consist of prolonged berth occupancy and utilization, as well as long ship turnaround time and anchorage waiting time. This study attempts to analyze port congestion in relation to investment activities. The Market Demand Strategy (MDS) will aid in identifying the investments made to the port of Durban. The MDS shows the amount of investment required in South African Ports, and it was expected to aid in expanding rail, ports, and pipeline infrastructure ahead of demand. This study further shows that, of all the amounts earmarked for investment in ports, a considerably lower actual CAPEX was invested, which causes the problem of port congestion to remain largely unresolved. Using data obtained from the Ports Regulator of South Africa and Transnet, the study employed content analysis and documentary analysis. A qualitative research approach, underpinned by two research tools, being document and content analysis to collect the secondary data, the study analysed investment expenditure from 2012/2013-2019/2020 in relation to port congestion. Literature has also revealed that there is a decrease in the actual investment made into the ports in South Africa which is cause for concern for port users. The study offers insight into port congestion, its causes, its impact and what can be done to combat it. The study makes recommendations on the rollout of investment for the betterment of the Port of Durban, whether it should be expanded, whether better systems should be put in place or can even establish whether current investment allocation is optimal.