The impact of insufficient port investment on congestion in the Port of Durban.
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Date
2022
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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.
Description
Masters Degree. University of KwaZulu-Natal, Durban.