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SA to reorganise ports structure to improve efficiency

One of a series of reforms aimed at bolstering economic growth, President Cyril Ramaphosa said.
Image: Elmond Jiyane, GCIS

South Africa will reorganise the management structure of the nation’s ports to make them more efficient, one of a series of reforms aimed at bolstering economic growth, President Cyril Ramaphosa said.

The overhaul will see the establishment of an independent national ports authority as a stand-alone subsidiary of Transnet SOC Ltd., the state-owned ports, freight rail and pipelines operator. The institution will own the infrastructure, while the harbours will be operated by Transnet Port Terminals.

“The functional and legal separation of these roles, which are currently operating divisions of the same company, will enable each to be fulfilled more independently and with greater efficiency,” Ramaphosa told reporters after visiting the Cape Town port on Tuesday. “It will mean that revenues generated by the ports can be invested in port infrastructure, both for the replacement of old equipment and for upgrading and expansion.”

Importers and exporters have long complained about lengthy waits to process their goods. The issue is being addressed, with Transnet planning to invest R100 billion ($7 billion) to upgrade its infrastructure, Ramaphosa said.

While ports, along with rail infrastructure, are considered strategic assets and will remain government-owned, private investors will be encouraged to partner with the state to improve terminal operations and build new infrastructure — which has already happened in several bulk cargo terminals, according to the president.

Transnet is finalising which assets and liabilities the two port units will hold and will complete the reorganization as soon as possible, said Portia Derby, its chief executive officer.

The overhaul of South Africa’s logistic’s infrastructure could take 10 to 15 years, according to Public Enterprises Minister Pravin Gordhan. While the ports could handle increased traffic, the nation’s railways are “a massive problem,” he said.

“Firstly, the theft of copper cables means that often electric locomotives have to be changed for diesel ones,” Gordhan said by phone from Pretoria, the capital. “Then there is also the theft of railway track and that takes a long time to replace. Lastly, the financial mismanagement of the recent past meant that money was diverted to big capital projects, such a buying the wrong locomotives, instead of doing maintenance.”

© 2021 Bloomberg

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Break it up, shake it up, shift people around, give them different job descriptions, alternative reporting structures, and in the end, all these incompetent deployed cadres still report to Luthuli House, the home of incompetence and looting.

C’mon, Mr President, who is, your Cadre’s who have zero experience or knowledge of Shipping, Logistic’s, Productivity, Efficiencies, Cost Effectiveness, etc, etc!? And what are you going to tell the Union’s, because the Workforce and them do not want a thing to change, I mean, why would they want to start actually working for their Wages!??

Try start learning from mistakes, the last clown you had as head honcho came from a Bank, and fleeced Transnet as if all he had learnt at that Bank was how to be a Bank robber!!

PRIVATISE and just collect Taxes, be cheaper and more beneficial to the Taxpayer and country this way!!

One cannot reorganize cancer. It must be removed. Reorganize it and you still have cancer. Get rid of the incompetent people, REMOVE them!

Just another job creation scheme for more cadres. No more space at the trough so create another trough. all these idiots know is feeding at the trough.
Animal Farm – George Orwell was a prophet.

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