Transnet rails at World Bank report

• World Bank agrees to improve the way it evaluates performance

SA’s state-owned freight transport and logistics company, 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 poorestperforming ports. 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.

Freight transport and logistics company 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.

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.

It engaged the bank and discussed these “factual errors” during a meeting on Monday.

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 (AIS) 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 can could be damaging, particularly for ports that already face operational difficulties.

“The report is based on available data from AIS and liner shipping data,” Phillips said. “It is key to afford measured terminals an opportunity to assess the sample data for verification.”

She said Transnet had acknowledged the World Bank’s willingness to improve the process. During the meeting, the bank confirmed it was agreed that data would be made available to Transnet for verification in future and that measured terminals would have a chance to comment on the report before its final publication.

“We should be given a right of reply before any report relating to our performance is finalised or published. Transnet only became aware of this report through the media.”

Transnet also detailed efforts to improve port operations, saying its recovery initiatives included the acquisition of cargo handling equipment.

“A 24-hour maintenance regime is also in place to secure the availability and reliability of existing equipment.”

Meanwhile, Oceana Group’s CEO, Neville Brink, has expressed disappointment in the purported performance of SA ports. He noted persistent delays and inefficiencies, which have significantly affected the fishing industry, among others.

Despite some recent improvements, SA ports lag behind their Namibian counterparts, which is disappointing, Brink said.

Cape Town, in particular, is reported to have struggled with increased average arrival times and significant delays, with vessels waiting the longest at anchorage.

“It has not been great but in the last six months [performance] has increased slightly. There is a willingness and attempt to try and get better.”