The South African government will “soon” be inviting proposals for private-sector participation in certain port operations, starting with the Durban Container Terminal, according to Minister of Public Enterprises Jeff Radebe.
Speaking at the opening of the second African Intermodal conference in Cape Town on Thursday evening, Radebe reaffirmed the government’s commitment to the concessioning of certain of the port operations, which had first been scheduled to go ahead in 2003.
However, unexpected delays were encountered due to strong opposition from organised labour at the ports, and the government undertook lengthy discussions to come to an agreement with unions over the issue.
“There has been some speculation recently about government’s commitment to a total concession of all port operations and the slow withering away of South African Port Operations [Sapo, the national ports operator] compared to our preferred position of seeking solutions that take cognisance of the complex yet different set-up that operates in our ports,” Radebe told the conference.
“Thus, government will soon invite proposals for private-sector participation in certain of our port operations, starting with the Durban Container Terminal. In reaching our decisions, we have taken into account African experiences, and engaged organised labour thoroughly to ensure that the policies affecting ports in our National Transport Policy White Paper are implemented swiftly.”
The minister also said that the government’s aim was to improve productivity and efficiency throughout the country’s ports system to ensure improved capacity to handle future demands.
While declining to pinpoint the causes for the severe congestion that affected most of South Africa’s ports in 2002, he did note: “The fact remains that inefficiencies remain in our system that need to be eliminated, as these add on to the indirect and direct costs to consumers, to our neighbours and to importers and exporters alike.”
In late 2001, the government split the former state-owned ports group Portnet into two independent bodies: the National Ports Authority, responsible for landlord activities, and Sapo, in charge of port operations.
While Sapo manages all of the country’s container terminals, private operators already manage 23% of miscellaneous merchandise terminals and 65% of bulk terminals under lease contracts. — I-Net Bridge