Steady improvements in port logistics bode well for the agriculture sector

Port logistics are making the news again, but this time for the right reasons.

- POLICY PERSPECTIVE by Theo Boshoff

Those who follow this space may recall that the World Bank compiles a Container Port Performance Index (CPPI) that ranks the worlds’ ports from best to worst.

A few years ago, South Africa's ports were ranked amongst the worst in the world. The latest CPPI recognises the Port of Cape Town as the most improved port, which is obviously positive, but it still ranks South Africa amongst the lowest in the world.

Statements such as these usually catch headlines, but they actually do not tell the whole story.

The methodology used by the CPPI has not escaped criticism. The South African Association of Freight Forwarders and some shipping lines have recently come forth to highlight a few key points.

TIME SPENT IN THE PORT

The CPPI places a lot of emphasis on the time that a ship spends in a port. This metric is biased against larger ports that receive more ships calling.

As a shipping line recently pointed out, a small port that only receives one ship per week has a big advantage in the scoring as they can direct all of their efforts towards that ship.