Concessioning of Ngqura on the table again

The possibility of South Africa getting its first privately operated container terminal has again been raised after cabinet in November approved a decision to direct the Transnet National Ports Authority (TNPA) to license Transnet Port Terminals (TPT) to operate the Port of Ngqura for an interim period of three years. According to a statement issued by the Eastern Cape Department of Economic Development and Environmental Affairs, the decision is “subject to Transnet National Ports Authority beginning a competitive process for the licensing of the Port of Ngqura in accordance with the National Ports Act”. The Act allows TNPA to enter into an agreement with “any person” in order to “design, construct, rehabilitate, develop, finance, maintain or operate a port terminal or port facility”. Opening the door for alternative operators is the proviso that the process of appointing operators “may only be entered into by the Authority in accordance with a procedure that is fair, equitable, transparent, competitive and costeffective”. Ngqura was originally conceived as South Africa’s first privately operated container terminal, with government splitting the functions of the regulator and operator in order to facilitate competition. And, although the port has been operated by TPT since the first vessel docked in October 2009, it appears that there has not yet been an official launch party. “The decision means that the way is now clear for the official launch of the Ngqura Port that is expected to take place before the end of this year. “The Port of Ngqura has been designated as the country’s premier transhipment hub,” adds the statement by the Department. Cabinet’s decision comes just weeks after Transnet chief executive officer Brian Molefe made a strong case for TPT to remain the “government monopoly” operator of all ports in South Africa.