[EN-SEA] Talks On To Re-Open South Africa's Strike-Bound Transport

STRIKE-BOUND port and rail operations in South Africa remained paralysed as ships waited for berths and big unions locked horns with the state-run ports and logistics giant Transnet over wage increases, reported London's International Freighting Weekly.
Transnet personnel chief Pradeep Maharaj said the container sector was the worst hit. "However, we are continuing to meet our critical requirements in terms of exports through the ports and movement of bulk commodities," he told Reuters.

Transnet re-opened talks with two unions, the larger more militant South African Transport and Allied Workers Union (SATAWU) and the slightly more conciliatory United Transport and Allied Trade Union (UTATU), which joined the SATAWU strike after its membership rejected the 11 per wage hike accepted by its own negotiators.

Safmarine, Maersk's South African unit, said Durban terminals remained shut and at Cape Town and Port Elizabeth had one gang of dockers still working, reported London's Containerisation International.

The shipping company has set up alternate plans for short-sea cargo runs and also scheduled vessels to skip port calls or wait for berths depending on their loads.

SATAWU rejected the 11 per cent wage increase Transnet offered from the start and stayed with its demand for a 15 per cent increase, and was later joined in the strike when UTATU membership insisted on the larger wage demand, thus widening the strike.

Said Transnet: "Acceding to demands for 15 per cent - three times the inflation rate - would not only fuel inflation, it will drive up operating costs and force Transnet to raise the prices or cut jobs."

Containerisation International said backlog of cargo and the number of ships waiting was getting worse. "The delays caused by the strike are serious and are impacting the entire supply chain," said Safmarine spokesman Fred Jacobs.

Mr Jacobs said there are no transshipment ports serving the region and Safmarine has been unable to ship containers by rail.

The strike took its toll on the country's exports, reported Reuters, threatening deliveries of metals, fruit and wine to Europe and Asia.

Said Citrus Growers Association CEO Justin Chadwick: "We have enough store capacity to take fruit until the weekend, but if it goes past the weekend, we start running into capacity problems."

Mr Chadwick said the country's ZAR4.5 billion (US$600 million) citrus sector, the second largest after Spain, was storing oranges and grapefruit destined for Europe and Middle East in fridges, but space was limited.

Source : HKSG, 15.05.10.