In response to the escalating crisis at Durban Harbour in South Africa, a leading risk manager is arguing for better risk management across the logistics chain.
In an urgent call to action, Volker von Widdern, head of strategic risk at Riskonet Africa, has underscored the critical importance of innovative risk management in logistics, exemplified, he said, by the escalating crisis at Durban Harbour.
This situation is not just a logistical challenge but a stark reminder of the fragility and complexity of global supply chains, Von Widdern said.
The port, a cornerstone of South Africa’s economic infrastructure, handling about 60% of the country’s container traffic is facing unprecedented backlogs. Transnet’s latest reports indicate a staggering loss of at least R160m in revenue due to inefficiencies in container movement, casting a shadow over the financial stability of Transnet’s otherwise profitable port operations.
With nearly 71,000 containers trapped in limbo, as reported by the South African Association of Freight Forwarders, the urgency for innovative solutions has never been greater. Durban’s ranking among the bottom 10 of the 348 ports in the World Bank’s latest container port performance index is a clarion call for immediate action.
Transnet’s initiatives to alleviate this crisis include ambitious targets to increase container throughput at Piers 1 and 2 within the next few months and a revamped 12-hour shift system aimed at optimising workforce productivity.
“The current scenario at Durban Harbour is more than a logistics issue; it is a vivid illustration of the ripple effects that disruptions in logistics can have on the entire economic ecosystem,” said Von Widdern. “Each delayed container is not just a unit of cargo but a critical component of someone’s business, livelihood, or personal project. The delays are akin to missing pieces in a complex, interdependent puzzle affecting lives and businesses.”
Von Widdern emphasised the vital need for adaptive risk management strategies in logistics.
“The Durban Harbour crisis is a wake-up call. It highlights our profound reliance on logistics services and the necessity for swift, innovative solutions to ensure resilience in supply chains,” he said.
He has called for enhanced collaboration between key logistics players and South Africa’s ports, advocating for solutions like increased crane capacity, innovative container storage methods and performance benchmarks in line with global leaders.
“Effective risk management in logistics isn’t just about anticipating challenges; it’s about swiftly resolving them. The prolonged delay in the Durban harbour joint venture project is a testament to the need for immediate, impactful action.”