Opportunity evaluation - Durban Container Terminal Pier 2

Background

• The client was seeking a private partner to leverage expertise, global experience and industry linkages of an international terminal operator to improve Durban Container Terminal Pier 2 (DCT2) competitive positioning.

Client Objectives

• As part of their evaluation of the potential opportunity with the Durban Container Terminal

  Pier 2 (“DCT2”) project, the client engaged Drewry to map the current logistics chain for import/export containers to estimate the total time and cost incurred to move the cargo to/from consumption or production centres in Durban’s hinterland

• The project scope included the identification of major bottlenecks/constraints leading to delays and additional logistics cost and potential areas of efficiency improvement and opportunities to increase margins and market share.

Drewry Approach

• Drewry undertook an extensive programme stakeholder engagement to:
  • Map the current logistics chain for import/export containers;
  • Estimated the total time and cost incurred to move the cargo to/from consumption or production centres in Durban’s hinterland;
  • Identify the major bottlenecks/constraints leading to delays and additional logistics cost;
  • Get a strong understanding of the next best alternative for cargo owners / forwarders for using Durban and the incremental cost for making use of the next best alternative.
• This was synthesised into clear set of recommendations and action points, alongside the potential outcome for the client.

Results Achieved

• High level set of measures to address bottlenecks and impact on cost to BCO;

• Determine normalised total supply chain costs and the potential improvement in Durban routing

  Comparative analysis of alternate routing options and incremental cost for making use of the next best alternative;

• List of recommendations/action points, risk mitigation measures and mechanisms available for the SPV and potential outcome.