South Africa's logistics company Transnet on Thursday said it has agreed a 10-year partnership deal with German equipment maker Liebherr for the supply of cranes as it seeks to upgrade and modernize its port operations.
The two parties have also agreed on a 20-year asset management program, which will see Liebherr provide equipment maintenance, repairs and spares, Transnet said in a statement.
The state-owned Transnet, which operates South Africa's ports and freight rail network, has been struggling to provide adequate services due to under-investment. Its port operations have been hobbled by equipment shortages, often leading to lengthy backlogs that have impacted retailers and exporters.
"This strategic collaboration empowers us to significantly boost operational efficiency, streamline port logistics, and reduce long-term operational costs," Transnet Port Terminals Chief Executive Officer Jabu Mdaki said.
Transnet said it had already placed substantial orders for Liebherr equipment, including four ship-to-shore (STS) cranes for the Durban port. It has also ordered 48 rubber-tired gantry (RTG) cranes for the Durban and Cape Town terminals.
(Reuters - Reporting by Nelson Banya)