South Africa port force majeure partly lifted as strike ends

South Africa’s state-owned port and rail operator partially ended a force majeure at its harbors after reaching an agreement with workers who went on strike over wages two weeks ago.

Transnet SOC Ltd. said in a statement the measure adopted for automotive, bulk and multi-purpose terminals is “being uplifted with immediate effect” after a dispute with two labor unions was resolved. The strike, started by the United National Transport Union on Oct. 6 and joined by the South African Transport and Allied Workers Union four days later, has affected exports of iron ore, coal, chrome and some agriculture products. 

Thungela Resources Ltd., the nation’s biggest shipper of thermal coal, said it’s closely monitoring how quickly rail services return to pre-strike levels.

“The rail network remains unbalanced with train sets at different parts of the network, and accordingly it will take a few more days for the system to be rebalanced,” Thungela spokeswoman Tarryn Genis said in an email.

Because of backlogs at its container terminals and the impact this has on operations, the force majeure for these facilities remains and may be lifted by Oct. 31, the ports operator said.

Transnet is “implementing recovery plans to stabilize operational performance and efficiencies across its terminals, following the industrial action by employees which ended earlier this week,” it said in the statement.

The Minerals Council South Africa, an industry lobby for bigger mining companies, estimates the strike cost its members about 815 million rand (about $44 million) a day. Fruit producers have also expressed concern that their harvests will rot at the docks.