It is reported today that Transnet Port Terminals, an operating division of Transnet SOC Ltd (“Transnet”), has formally declared the occurrence of an event of force majeure to all its customers.

This follows protracted discussions between unions and Transnet over recent days, and measures taken by Transnet to mitigate disruption, including the implementation of an operations stabilization levy on 4 October 2022.  The formal declaration came after two of the recognised unions, SATAWU and UNTU, declared a strike action, which is anticipated to commence today.

In its formal notice, Transnet Port Terminals have indicated that:

“… we anticipate that portions of our operations will be scaled down. However, and to the extent possible, we will attend to invoke contingency plans and source external stand-in / temporary resources to ensure that the operations continue across the various terminals. Should the strike extend beyond the anticipated period of one week, Transnet will assess the impact of the strike on its operations and the Force Majeure event declaration, and further communication in this regard will be forthcoming from Transnet Port Terminals.”

Given the aforegoing, service providers affected would do well to revisit their existing contracts so that, and to extent permitted, consideration can be given to similarly invoking force majeure with their customers.

As this is a developing story it remains to be seen the extent to which there are disruptions in our ports, including the disruption of cargo operations. We shall monitor the situation and provide updates as they become known.