PRIVATISATION PIVOT: Port in peril — former Transnet workers recalled to cover for Durban Gateway Terminal

Things are heating up in eThekwini – we’re not talking about the seemingly early summer in Durban – with Transnet’s latest attempt to revitalise the harbour. As we’ve already explored, the Port of Durban happens to be the busiest container port on the continent.

And Durban Gateway Terminal (DGT), or the artist formerly known as Pier 2, is a key part of the harbour given that it “handles almost half of South Africa’s containerised freight volumes”, Minister of Transport Barbara Creecy’s team estimated. 

But in August, switching to a new IT system rocked the boat(s) at DGT. Transnet and International Container Terminal Services Inc (ICTSI) – the Philippines-based company with whom it has teamed up to manage DGT – have since scrambled to assure angry shipping companies they can fix it.

On the ground, the picture is considerably less rosy than Creecy’s press conference would have you believe. 

Running the numbers  

As Daily Maverick reported last month, IT changes in mid-August brought cargo to a standstill at DGT, and the delays continue. 

The Southern African Association of Freight Forwarders (Saaff), which represents logistics companies and other stakeholders, issued an update on cargo flows through DGT, dated from 14 July to 1 October, saying DGT “is operating at below pre-crisis levels and failing to catch up to the current delays of 18-21 days”.

Granted, things have picked up since the peak of the Navis crisis: “DGT recorded a modest improvement in waterside throughput during the latest reporting week, increasing by 6%, while internal terminal conditions remained comparatively stable,” explained Jacob van Rensburg, head of research, analytics and industry intelligence at Saaff. 

“However, stabilisation and improvement from a depressed base should not be confused with full recovery. Vessel delays remain severe, averaging approximately 251 hours at anchorage and 127 hours alongside… Approximately 10,000 containers are also expected to be discharged via Pier 1/Point, which should relieve pressure at DGT, but will redistribute rather than eliminate pressure across the Durban container system.”

Van Rensburg said that “gate performance fell to 2,111 moves in the latest 24 hours. The persistent vessel queue therefore remains the clearest evidence that sustained system recovery has not yet been achieved.”

Saaff also cautioned that current investment in equipment and processes was insufficient. It expects DGT to present a 24 to 48-month equipment roll-out plan towards the end of the month. 

DGT Chief Executive Javier Lancha confirmed to Daily Maverick that “DGT is progressing plans to replace its current truck appointment system with a modernised digital solution, Navigate”. 

“The platform is intended to provide better planning, visibility and flow management for transport operators, while addressing a number of limitations in the current appointment system,” Lancha said. “Further details on the implementation and rollout of Navigate will be communicated to stakeholders as the programme progresses.”

“DGT acknowledges the challenges experienced by some port users, the operational situation has stabilised and continues to improve, with Navis N4 stable and supporting stronger operational control. DGT will ensure that affected stakeholders are included in regular engagements and provided with relevant operational data to demonstrate the steady progress being made in restoring fluidity, improving service levels and strengthening operational reliability.”

Complaints from the logistics sector were loud enough to draw South Africa’s transport chief Creecy to Durban’s shores.

During the transport minister’s visit on 2 October, Transnet reported that “the minister welcomed plans to increase engagement with customers and industry stakeholders”.

“Beginning next week, DGT, ICTSI and Transnet will hold structured engagements with customers to improve communication, provide operational updates and address concerns relating to truck bookings, cargo movements and terminal performance,” Transnet said.

To which Creecy commented: “The true measure of success will be when customers themselves report tangible improvements in service levels and predictability.”

“The performance of this terminal has a direct impact on the health and competitiveness of our economy, as well as on importers, exporters, manufacturers and agricultural producers.”

High and dry

The minister told media during the port visit press conference that the current situation is “not what we want”.

“We do not want to pretend that there isn’t frustration… I think the undertaking that we’ve had from management here today is that they want to service the industry, they want to hear those complaints and they want to fix them. We’re going to have a good shot at it over the next two weeks.”

Part of the plan is to reintroduce the helplines which were set up temporarily in August to handle Navis-related issues.

In Creecy’s words: “We’re never going to get to four million TEUs in this port if we keep on running it the way we’ve always run it.”

The current capacity for the port of Durban as a whole, not just DGT, is around 2.9 million TEUs, according to Transnet. The goal is to grow this number to 11.4 million, of which roughly 4.4 million is intended to pass through DGT. 

The partnership with ICTSI, and the subsequent shift to a new operating system, have been framed as necessary for improvement. 

But speaking to workers on the ground, it seems more like the Navis debacle was the straw that broke the camel’s back.

From the perspective of port staff, operations have been unsatisfactory for customers, like shipping companies, because workers are trying to function in a dysfunctional system. 

They have come forward with reports of understaffing, compromised safety conditions and unpaid wages, which does not sit well with the R72-billion investment into container shipping which Transnet cited in its KZN Ports Master Plan. 

Several fixed-term contract employees who had been working at Pier 2 before ICTSI took over and it was renamed DGT, said they said they lost their jobs last November, when they were told that the new partnership would require “downsizing”. 

When asked about this, Transnet Port Terminals responded:

“No Transnet Port Terminals (TPT) employees were made redundant when ICTSI assumed management of Durban Container Terminal Pier 2 (DCT Pier 2), now known as the Durban Gateway Terminal (DGT).”

The way Transnet squares the circle is that the fixed-term contract (FTC) employees were hired on a temporary basis, and therefore aren’t included in TPT’s official workforce – yet some of those workers say they had already been working with Transnet for multiple years at that point. 

One source told Daily Maverick that “an entire section of the port was closed down and those workers who were at that department were then transferred to our positions”.

“In May, we were called to write assessments for these positions again and to our surprise only the staff from Transnet Pier 1 were put in our places at the now DGT, formerly Pier 2 port. During this time, it’s reefer (refrigerated container) season and volumes are really high… the people who were inside the terminal said they were extremely strained because of being understaffed. The department that was closed led to containers being lost within the terminal, increasing the turnaround time for clients and shippers which has contributed significantly to the traffic flow on Bayhead Road.”

The workers’ narrative provides a much clearer picture of what has been going on at DGT, explaining why the situation has become dire enough for individual transport companies to create their own advice pages to help companies handle the chaos, despite Transnet maintaining a positive attitude about the changes in progress. 

“We are told that volumes are dropping in the terminal, which is the opposite of the reports they put out about how well the terminal is performing and growing outputs,” a source said.

I want you back 

When things were getting dicey in September, after the transition to Navis, around three dozen workers who were allegedly displaced by ICTSI’s streamlining plan were brought back to deal with the deluge.

Saaff’s data tracks the signals of a slowdown at the port back to mid-July:

First, the number of vessels at anchorage began to rise, and by late July, gate moves were falling steadily.

Then in early August, containers on hand started to fall, then the Navis switch took effect and things really backed up.

Saaff reported the “first uptick in waterside movements” on 17 September – after the FTC staff were brought back. 

Creecy was keen to point out that, from January to June, DGT exceeded performance targets by 21%. However, the fact that temporary workers say they were called back does raise questions about DGT’s newly privatised management decisions.

It was revealed to Daily Maverick that these workers have signed three-month contracts, ending on 30 November, but have had no communication about possible extensions as yet. Word on the ground is that workers at other parts of Durban harbour, which are not managed by the new partnership with ICTSI, had signed one-year contracts. 

“Being in the terminal now, I can confidently say that the operations at Rail Department and Waterside are understaffed… But the FTC workers are told that there is no work for them beyond this contract that we have signed and the DGT [ICSTSI] is now in charge and are not looking to employ, yet the company is set to continue with infrastructural and equipment development and upgrading,” one supervisor explained. 

If all this is true, there could be worrying implications of the changes at DGT. Another technician, who spoke under condition of anonymity, explained that “in areas where workers were paired up, they now worked alone, which completely goes against the standard safety procedures of all ports, nationally... Workers are scared to speak up against this.”

Pass the responsibility parcel 

The FTC workers who were brought back say they have not received their salaries for September, with no explanations provided and emails sent to management bouncing back unanswered. 

They tried taking their concerns to a former terminal manager, but were told that “things have changed completely”.

“We are currently managed by the Philippines-based ICTSI leadership team,” Transnet wrote to one of the workers, in an email seen by Daily Maverick. 

When we contacted Transnet about this issue, it informed us that queries related to this part of the port should be directed to its new management – DGT ICTSI. 

DGT ICTSI promptly responded by saying:

“Transnet pays employees who are seasonal employees and temporary employed for a short period. Transnet recruits the employees and seconds them to DGT. These are not DGT employees. The issue of payments of salaries lies with Transnet, who then invoices DGT.”

Transnet Port Terminals, for its part, commented that “prior to DGT commencing operations on 1 January 2026, TPT [Transnet Port Terminals] had a permanent employee complement of approximately 2,100 employees”.

These employees remain Transnet employees throughout the duration of the 25-year concession agreement, but during peak operational periods, this workforce is supplemented by fixed-term contract employees appointed in line with operational requirements.

“In terms of the Personnel Services Agreement between TPT and DGT, Transnet sourced 30 fixed-term contract employees in August 2026 on three-month contracts commencing in September and ending in November 2026. TPT can confirm that salary payments for the 30 fixed-term contract employees were delayed. The delay was the result of administrative shortcomings and outstanding supporting documentation, including verified banking details and certified identity documents required to process payments. The necessary corrections and submissions have since been made, and the payroll process is nearing completion.”

Transnet says that a special payment run has been scheduled for 23 October 2026 to ensure all affected employees receive payment.

“The 30 fixed-term contract employees remain on duty and will continue working until the conclusion of their contracts in November 2026, which coincides with the end of the citrus export season at the Durban Gateway Terminal.”

Once the temporary workers are forced to leave in November, even though citrus season will be over, they predict “the terminal will buckle”. 

“Workers will definitely be strained physically and mentally because the work we do there needs precision. There will be more work than there are workers,” a staffer told Daily Maverick. 

They found out about Creecy’s visit only through social media, and were not given an opportunity to share their concerns.

“We really thought that collaboration with ICTC or whatever they’re called would come with stability, but it seems to be more disruptive for us, honestly.  Communication between TPT/DGT and the work force is close to non-existent and whatever communication we do have is ambiguous as hell. It’s so frustrating.”

Gateway to nowhere  

According to workers on the ground, the minister’s visit has done nothing for them, and their anger is palpable. 

“We were trained for these jobs that we do by the Transnet School of Excellence, yet were not good enough to be hired permanently. Imagine reading that there’s been a budget of billions being invested in the company, but they cannot hire 40 people who have been with them for close to a decade.”

According to Transnet, DGT ICTSI has “outlined planned investments of R737-million in the near term and R1.2-billion over the next two years to modernise infrastructure, improve equipment reliability and support future growth”. 

The workers, however, have a different experience:

“When we do get opportunity to apply for permanent posts, those posts are frozen. Last year, once our contract ended, we couldn’t have access to the internal [site] where permanent positions were advertised. We lost out on those positions.”

They added that their trade representatives, United National Transport Union and South African Transport and Allied Workers Union, are “not winning any battles when it comes to the FTC matter”. 

The fact that these workers have been hired on a temporary basis seems to have opened a loophole for both DGT ICTSI and Transnet to skirt responsibility.

For ICTSI, which is not a public institution, its duty is to the shareholders watching its New York-listed stock. 

But to that, Creecy herself has said: “The performance of the Durban Gateway Terminal is a public matter. And the terminal is publicly accountable for its performance, its investment programme and its turnaround.”

It should then also be publicly accountable for the treatment and safety of its workers – permanent, temporary or otherwise. DM