Leonard Neill GOVERNMENT WILL begin the pre-qualification process for the concessioning of the Durban Container Terminal at the end of this month. That’s the word from director of parastatal restructuring at the Department of Public Enterprises, Richard Goode, who says the biggest issue at present is whether to split the concession between two private sector operators or confine it to one. The process is expected to be finalised by the end of the year and will now take centre stage with the Telkom listing complete. Models for the concessioning of the terminal have been submitted by consultants CPCS Transcom, the Canadian company appointed by the department. The pre-qualification period will enable government to ensure that bidders have the necessary capabilities, says Goode. “Key criteria will be investment plans and the ability to meet efficiency targets, expand local knowledge and facilitate black economic empowerment.” It is hoped that the appointment of the eventual operator will be made before the year’s end, but the process will only move as quickly as high-level decisions are made, he says. The decision on whether or not there should be one or two operators appointed in Durban is an awkward one, particularly as the harbour has unique physical characteristics. “Unlike many harbours where there is ample space for expansion, Durban has its constraints. It has limitations on the number of berths that can be allotted for the container terminal, yet it handles 65% of South Africa’s container traffic. “This amounts to a present throughput of 1.2million TEUs annually. If we divided the concession into two parts, it would mean each operator handling 650 000 TEUs in a year, and that’s a profitable business to be in. But whether or not the situation will allow for two To page 20 From page1 operators to be working side by side is a matter for discussion. “If there are to be two, then there will have to be independent entrances to each sector, and two systems introduced for the road network. “Above all else there is the consideration that competition is brought in when two are appointed. It will bring in investment and the need for operators to work efficiently and effectively. The level of interest from international players in the Durban terminal is apparent from the number of merchant banks and port consultant firms, acting on behalf of international terminal operators, that have approached the department for information, he says. Another issue that will need to be addressed is the appointment of a port regulator to monitor competition at the country’s ports and to watch closely developments in the Durban Container Terminal.
