US embassy cable - 04PRETORIA4199

UNCLAS SECTION 01 OF 03 PRETORIA 004199 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR AF/S/TCRAIG AND KGAITHER 
 
E.O. 12958: N/A 
TAGS: ETRD, EWWT, EAID, ECON, PINR, PTER, SF 
SUBJECT: DURBAN PORT - IMPROVEMENTS, CONCESSION, SECURITY 
 
 
(U) Sensitive but unclassified.  Please protect accordingly. 
Not for Internet distribution. 
 
1. (SBU) SUMMARY.  Infrastructure and process improvements 
as well as new equipment are increasing efficiency at Durban 
Port according to Mervyn Chetty, Executive Manager of 
Corporate Strategy and Continuous Improvement at South 
African Port Operations (SAPO).  New cranes are expected to 
double capacity and new scanners are on their way.  The 
Container Terminal is expected to be concessioned by the end 
of the year with SAPO as part of a joint partnership 
operating and managing the Terminal.  Although, Security at 
the Container Terminal appears adequate, security lapses at 
Maydon Wharf are still evident.  END SUMMARY 
 
2. (U) A multi-billion rand project titled "Development 
2005" is addressing the current capacity constraints at the 
Port of Durban.  SAPO Executive Manager of Corporate 
Strategy and Continuous Improvement Mervyn Chetty told 
Econoff that the project addresses his top three priorities 
to improve the port's people, processes and equipment. 
 
----------------- 
PEOPLE IMROVEMENT 
----------------- 
 
3. (SBU) Chetty acknowledged Durban's dismal delays in 
recent history.  However, he said that much of this could be 
attributed to the fact that the people on the ground lacked 
the proper tools for the job.  For instance, Chetty points 
out that in 2002, just 10 percent of all container traffic 
was unloaded and stacked at a rate of more than 16 
containers per hour.  Two years later, after increasing its 
straddle carrier fleet to move and stack containers, 84 
percent of container traffic is now being moved at a rate of 
more than 16 containers per hour. 
 
4.  (U) Chetty also pointed out that while global container 
traffic is increasing by 6 percent each year, Durban is 
experiencing 8 percent growth.  To handle the container 
growth, shipping lines are using larger ships. 
Unfortunately, Chetty says that Durban has an insufficient 
number of qualified open-license pilots to steer larger 
ships into port.  This creates delays despite improvements 
in capacity within the port.  Chetty is working closely with 
the National Ports Authority (NPA), which is responsible for 
training harbor pilots. 
 
------------------- 
PROCESS IMPROVEMENT 
------------------- 
 
5.  (U) Chetty also said that improvements could be 
immediately realized with slight modifications in processes. 
For example, the zig-zag configuration of the Durban 
Container Terminal's (DCT) quay wall accommodates only one 
crane for adjacent berth numbers 202 and 203.  This prevents 
ships docked concurrently at the two berths from unloading 
simultaneously.  While one ship is unloaded, the other ship 
waits, inefficiently occupying limited berth space.  In 
addition, the stacking configuration at these berths only 
allowed a maximum of 10,000 containers.  After some 
analysis, Chetty staggered the arrival and departure times 
of ships assigned to 202 and 203 so that while one ship was 
docking and securing moorings, the other was being unloaded. 
This allows the DCT to turn ships around much more quickly. 
In addition, Chetty's modifications of the stacking 
configuration for containers - taking them higher and 
storing them further down the quay wall- increased the 
storage capacity to 15,000 containers. 
 
6.  (SBU) Chetty is also working with U.S. Customs and 
Border Protection inspectors assigned to Durban as part of 
the Container Security Initiative (CSI) to improve the 
process of scanning containers at Durban's lone scanner. 
Members of the CSI Team at Durban Port told Econoff that the 
disjointed process for identifying and delivering a 
container from the Terminal to the scanner is causing delays 
resulting in many containers being short-shipped (missing 
their assigned ship).  They said that when CSI identifies a 
container, DCT employees retrieve it from the stack and 
deliver it to the Terminal gate.  The shipping agent must 
then send a truck from one side of the harbor to the 
Terminal to transport the container 100 meters to the 
scanner.  After being scanned, the truck returns the 
container back to the Terminal.  DCT employees must then 
retrieve it from the gate and return it to the stack.  In 
addition to the transportation inefficiencies, the process 
of moving the container to and from the secure terminal 
requires additional documentation, which can add to the 
delays.  The CSI team has suggested to Chetty that DCT 
workers convey the container from its stack directly to the 
scanner and back to the stack. 
 
--------------------- 
EQUIPMENT IMPROVEMENT 
--------------------- 
 
7.  (U) Durban has recently added three ship-to-shore gantry 
cranes, increasing its total to 16 and bringing the port 
more in line with international best practices that call for 
one crane per 100 meters of quay wall.  Chetty said these 
new cranes will allow the port to accommodate an expected 
increase in container traffic from the current 1.2 million 
TEU (twenty foot equivalent units) per year to 2.4 million 
TEU per year. 
 
8.  (SBU) In addition, Chetty said that the South African 
Revenue Service (SARS), which oversees Customs issues, has 
purchased seven new security scanners.  Three of these will 
be allocated to the Durban Port and the other four will be 
placed at border crossing posts.  Currently, Durban has just 
one scanner, which is located outside the Container 
Terminal.  This creates huge bottlenecks as the South 
African Police Service (SAPS), the NPA, and the U.S. CSI 
team send containers to be scanned for illegal contraband. 
By late morning, the single lane Bayhead Road is backed up 
by over a mile, creating gridlock at the Terminal.  The 
addition of extra scanners will allow a dedicated scanner to 
be located inside of the DCT.  Chetty could not provide 
Econoff with a definitive delivery date. 
 
------------------- 
OTHER PORT PROJECTS 
------------------- 
 
9.  (SBU) Durban has just completed a major expansion of the 
quay wall at the port's Point area on the city side of the 
harbor.  The new expansion will accommodate three more 
berths which will be used for multi-purpose cargo, 
relocating from Pier 1 (adjacent to the Durban Container 
Terminal)   This addition will allow the DCT to expand into 
Pier 1 and increase its capacity by facilitating more 
container space at the Terminal.  Chetty said the berths 
should be operational by early 2007 after the new area has 
settled and the surface been paved.  Chetty said that the 
NPA is also considering annexing Salisbury Island (adjacent 
to Pier 1) into the DCT expansion.  In addition, the 
Passenger Terminal will be relocated to the new Point quay 
wall where tourists will have access to the oceanfront and 
the new uShaka Marine World theme park.  Port authorities 
also speculate that the Port may expand into the space 
currently occupied by Durban International Airport if the 
airport is moved north to the Dube Trade Port. 
 
10.  (U) The widening of the Durban harbor entrance is also 
scheduled to begin early next year.  The project will widen 
the channel into Durban Bay from about 130 meters to 220 
meters by relocating the breakwater (North Pier).  At the 
same time, the entrance channel and subsequent channels 
within the Port will be deepened from about 12.8 meters to 
as much as 18 meters to allow access for larger container 
ships capable of carrying 6,500 TEUs. 
 
11.  (U) Chetty also recognized that congestion is a problem 
on Maydon Wharf Road and Bayhead Road into the Durban 
Container Terminal.  He said that the city is scheduled to 
begin construction on an interchange from Bayhead Road to 
the freeway, allowing port authorities to close public 
access to the Maydon Wharf Road.  In addition, plans are in 
the works to widen Bayhead Road into the Terminal and to 
create parking along the side of the road. 
 
------------------------------------ 
DURBAN CONTAINER TERMINAL CONCESSION 
------------------------------------ 
 
12.  (SBU) The SAG would like to have its tender for a 
concession of the Durban Container Terminal in place by the 
end of 2004.  Chetty believes that SAPO's improved 
performance over the past 18 months is proof that it can 
effectively operate the port.  What SAPO lacks, according to 
Chetty, is management experience.  A senior Public 
Enterprise official confirmed to Econoff that the concession 
of the DCT will be a joint partnership with SAPO.  (NOTE: US 
company CSX is expected to be a major contender for the 
terminal concession. END NOTE) 
 
-------- 
SECURITY 
-------- 
 
13.  (SBU) The NPA has recently installed a high fence 
around much of the port.  A second checkpoint at the Point 
has improved access control to those berths.  However, Rob 
Gardner, an agent from ISS-Voight Shipping and former- 
President of the Shipping Lines Association, told Econoff 
that in his opinion, fencing is an inadequate security 
measure.  He said that closed-circuit television (CCTV), 
human security, and restricted access protocols are needed 
to create a more secure port. 
 
14.  (SBU) Private vehicles can easily access the Maydon 
Wharf area.  Econoff observed shipping lines unloading 
containers on the street along Maydon Wharf, which could be 
accessed by unauthorized persons.  Although the NPA has 
required shipping lines to hire security to prevent access 
to ships and cargo, Econoff observed instances where the 
security was lax, inattentive, and sometimes not present. 
Gardner explained that the NPA does not have much leverage 
in enforcing the security plans.  If shipping lines fail to 
provide adequate security then the NPA is responsible to do 
so.  Gardner said he did not think the NPA has the capacity 
to provide security.  In addition, it is difficult for Port 
authorities to restrict access to the area because private 
companies are located there. 
 
15.  (SBU) Durban's Container Terminal has much tighter 
security than the rest of the port.  Bongi Nzuza, Protection 
Services Manager at the Terminal, told Econoff that in his 
four years at the Terminal is has removed dishonest 
employees and placed cameras at the entrance to photograph 
drivers and containers entering and exiting the Terminal. 
Nzuza said he has also increased training for his security 
staff and that, as of mid-July 2004, only credentialed 
individuals may enter the Terminal.  Nzuza is also looking 
into implementing CCTV cameras throughout the Terminal.  He 
said that there have been no thefts of containers in the 
last five years, something that was previously commonplace. 
Nzuza also noted an increased police presence since the 
Container Security Initiative was implemented in December 
2003. 
 
FRAZER