Report of the Portfolio Committee on Public Enterprises on the Oversight Visit to Transnet Port of Durban, dated 23 March 2022 1. Introduction The Portfolio Committee on Public Enterprises (the Committee) undertook an oversight visit to the Transnet Port of Durban, Transnet Engineering and Transnet Pipelines from the 3 – 4 February 2022. The main purpose of the visit to the Port of Durban was to: assess progress that has been made in the expansion of the port, the impact of corporatisation of the port, challenges and efficiencies of the port. The Committee met with the executive management of Transnet led by the Group Chief Executive Officer, Ms Portia Derby. The Committee visited Transnet Engineering (TE) and Transnet Pipelines (TPL). The Committee also met with organised labour, representatives of the KwaZulu-Natal Department of Economic Development and Tourism and the City of Ethekwini. 1.1 Delegation The Committee delegation included the following members: Mr K Magaxa (Chairperson of the Committee, ANC), Ms J Tshabalala (ANC), Ms J Mkhwanazi (ANC), Mr N Dlamini (ANC), Ms C Phiri (ANC), Mr G Cachalia (DA), Ms R Komane (EFF) and Mr Buthelezi (IFP). The delegation was accompanied by the following parliamentary officials: Mr D Mocumi (Committee Secretary), Mr M Dodo (Committee Assistant) and Mr R Mnisi (Content Advisor). 2. Overview of the Port of Durban The Port of Durban is ranked 1st in Sub-Saharan Africa, 3rd in Africa 4th in Southern Hemisphere in terms of container through-put. It is the busiest port in Africa in terms of vessel calls (+4000pa). The Transnet National Ports Authority (TNPA) owns the land of the port and terminals. The Transnet Port Terminals operates the terminals; it operates the container handling, and bulk container terminals. The customers of Transnet include terminal operators; shipping lines; ship agents; cargo owners; and clearing and forwarding industry. The Port contributes 20% to Durban GDP, 11% to KZN GDP and 2% to South African GDP. In terms of employment, it directly employs 1183, Indirect 50,000 and Projects 37,200. 2.1 Operational challenges of the Port Challenge Intervention Berthing A capital investment Programme is Delays as underway to address challenges. ▪ result of high Interim Measure: Introduction of marine craft chartered marine fleet contract. breakdowns (Tugs, Pilot Boats, Launches) Old Ship Revitalization of Dry-Dock & Workshop Repair 24 to improve service level agreement Facilities and Infrastructure Maydon Wharf A MW (Maydon Wharf) decongesting Congestion Stream has been established as a subcommittee of the Decongestion Task Team. ▪ Maydon Road Deproclamation: TNPA in collaboration with eThekwini Municipality to transfer Maydon Wharf Road to Port of Durban Declining T/O Technical department has done levels of root cause analysis and they are Progress to date TNPA deployed resources to focus on capital investment plan. Business Case is going through corporate governance approval structures. Expediting Operation Phakisa Initiatives Progress tracked on daily operations platform and biweekly on Decongestion Task Team ▪ Port of Durban awaiting eThekwini Municipality Counsel approval on the Deproclamation process Deviations tracked on daily operations meetings 1 operational efficiencies at Container Terminals. Island View T/O SWH Automotive Terminal Stack Management 2.2 a) b) c) d) e) f) engaging OEM to deal with equipment challenges Re–installation of infrastructure at berths to improve tanker vessel pump rates whilst alongside (IV5), to allow simultaneous discharge of 3 vessels at different berths (IV4) and improve discharge rate to decrease vessel stay on the berth (IV2) Auto terminal partnering with shipping lines to initiate time and motion study to assist in mapping processes and improve productivity (STAT) ▪ Incorporation of GCOS stack planning module to improve stack management TNPA working with T/O who are reinstalling infrastructure In progress Update on Port decongestion initiatives Establishment of a multi-party work team: Integrated Decongestion Team formed with daily operations meetings held and implementation review done biweekly. Progress feedback integrated into District Development Model (DDM) Back of port operating hours & slot booking: Best operating procedure agreed to: 24 hours Truck pre–booking; 16 Terminal Container Handling facilities in the port, only 4 have adopted truck booking system (70% market share); TPT (Pier 1 (P1), Pier