Negotiations between South African transport union and the state-run logistics giant Transnet have broken down and threatened to widen the strike that has paralysed the nation's railways and ports for more than a week.

The unions said 60 per cent of Transnet's port, rail and fuel operations were disrupted, with no imported goods being offloaded at ships, Reuters reported.

In a joint statement, South African Transport and Allied Workers Union (SATAWU) and United Transport and Allied Transport Union (UTATU), declared: "Management walked away from any negotiated settlement after stating an unwillingness to budge on any item of money substance.

The unions have been demanding a cross-the-board 15 per cent wage increase while Transnet is only prepared to offer 11 per cent. Over the weekend, the union dropped its demand to 13 per cent, but management held firm at 11 per cent.

Reuters reported that the strike has hit metal, fruit and wine exports to Europe and Asia after nearly two-thirds of Transnet's 54,000-strong workforce joined the strike.

Analysts and the central bank are critical of the union's demands, saying the Transnet pay rise is above the inflation rate and the union demand is 5.1 per cent above that, and would slow the country's economic recovery. The lowest paid worker at Transnet earns US$470 a month, a union official said.

"Our members will remain steadfast in the withholding of their labour until a settlement is reached," the unions said.

Source: shipping online