State-run Transnet said it denounced the latest edition of the World Bank and S&P Global Container Port Performance Index after meeting with the World Bank to discuss several ‘factual errors’ found in the recently released report.
This comes after Cape Town port was dubbed the world’s worst-performing and least competitive port, according to the report, with the Port of Ngqura in the Eastern Cape, the Port of Port Elizabeth and the Port of Durban all ranking in the bottom 20 on the list of 405 ports.
Also read: Cape Town port ranks rock bottom on 2023 global index
The freight transport and logistics company raised concerns about the accuracy of the index, questioning its sample data and the methodology employed, as well as arguing that it was not given a chance to verify or contest the data prior to publication.
‘The Bank incorrectly uses the duration of a vessel’s stay as a measure of container port cargo handling performance, relied on third party sample data and failed to give a measured terminal access to the data sample for verification prior to publication,’ said Transnet in a statement.
‘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. The Bank’s measurement of vessel stay in port does not take into consideration throughput and other factors that determine the duration of a stay.’
Transnet meets World Bank specialists
Following its meeting with the bank’s transport specialists, who advised that ‘the CPPI is not a comprehensive indicator of container terminal performance and only seeks to advise on the stay of a vessel in a port’, Transnet expressed in its statement that it ‘is of the opinion that the index is, therefore, not correctly titled’.
The index utilises available data from the third-party Automatic Identification System (AIS) and liner shipping data. Transnet also stated that it had only become aware of the report through the media.
‘An accurate performance index can be a positive and constructive impact on plans to improve port cargo handling performance,’ continues the statement. ‘On the other hand, an inaccurate index has damaging reputational impact on measured terminals.’
According to the statement, it was agreed upon in the meeting that the data would now be made available to allow Transnet an opportunity to interrogate it. There was also a general acceptance and commitment to making the report available to measured terminals for comment before publication.
Also read: WCG concerned over Cape Town port’s failure to meet recovery targets
Recovery plan
Acknowledging the severe backlogs it experienced in the last quarter of 2023 as a result of inclement weather and equipment challenges, Transnet said its executive team have been transparent with the industry, explaining the challenges in the ports.
Transnet also added that a Recovery Plan to address the root causes of these challenges as well as improve operational and financial performance has been implemented since October 2023.
‘As a result of various tactical initiatives pursued as part of the Recovery Plan specifically targeted at improving productivity and optimising the operations, it is clear that there has been a stabilisation in the business as well as real improvement in rail and port operations,’ argues the statement.
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