Farmer's Weekly (South Africa)
Cautious optimism over corporatisation of SA ports
If government is unable to put a top management team in place, the corporatisation of the Transnet National Ports Authority (TNPA) will not change anything, according to Dr John Purchase, CEO of Agbiz.
President Cyril Ramaphosa announced in late June that the TNPA would be converted into an independent, wholly owned subsidiary of Transnet in terms of the National Ports Act No. 12 of 2005.
Although the TNPA would remain 100% state-owned, it would have its own board and be able to generate an income that would be ploughed back into the company.
Purchase said this in itself was positive. “Currently, all earnings go back into the larger Transnet [income] pool.”
However, the devil was in the details, which were still vague. It was unclear, for example, whom Ramaphosa would appoint to lead the TNPA.
“It’s important that a good board, good chairperson and a good management team are put in place. Otherwise, they won’t be able to execute the objectives of the TNPA.
“Currently, agriculture is under immense pressure [to export commodities], and we’re looking into alternative export ports such as Maputo in Mozambique,” Purchase said.
Almost all agricultural produce had seen a 10% rise in volumes this past season, which had put immense pressure on harbours.
“This is an issue that we’re struggling with daily, and it’s agriculture’s biggest crisis at the moment.
“Agriculture might be one of the smaller sectors, but there’s no denying the strategic importance of the sector to the South African economy.”
Agriculture’s logistical challenges were also unique because of the use of reefer containers for cold produce.
“The entire way that harbours need to be managed to accommodate agriculture is different from other commodity sectors such as mining,” Purchase said.
A statement released by the Presidency said that this reform would allow for the reinvestment of port revenues in port infrastructure, and would ensure that terminal operators were treated fairly and equally, enabling greater private-sector participation in terminal operations.
Werner van Rooyen, operational manager of the Fresh Produce Exporters’ Forum, said this move had brought some positivity to an environment that had been negative for a long time.
“It all depends on how it’s implemented. On the positive side, we believe it might bring the possibility of a publicprivate partnership to the table.”
Van Rooyen added that the right things had been said, but it was important that they were followed up by the right actions. – Susan Marais