The Port of Durban, the focus of several aspirant concessionaires … the NFLS confirms that privatisation per se is now rejected and that state ownership will continue in much its present form. ALAN PEAT THE NEW national freight logistics strategy (NFLS) - launched by minister of transport Jeff Radebe over two weeks ago – has been described as “more theoretical than practical” and “governmental gobbledy-gook” by two observers in the freight industry. FTW has not yet had any form of interpretation from the industry bodies – many of them still analysing the impact of the 62-page document, and one at least reliant on FTW for a copy of this rather complex document. It certainly starts off in a true vein, describing the freight system in SA and its links with the sub-region as “a collection of networks that are both excellent and poor – depending on the infrastructure and its operations, and the specific modal challenge in that area.” It continues on a warning note, stating that the growth of freight traffic has surpassed most of the 20-year growth forecasts made by Moving SA, at least 14 years before they were expected. This, it added, has placed massive pressure on infrastructure and operations to deliver acceptable services, while the system is being transformed to respond to the growth and level of demand. But, while it said that the NFLS was a response to “the freight system’s inability to fulfil the demand for cargo movement at prices, levels and quality of service, and at acceptable levels of reliability”, it does not come up with clear answers. Key challenges Rather, it added: “The problem statement defines the key – though not all – the challenges within the system.” This, the strategy document said, was that “the freight system in SA is fraught with inefficiencies at system and firm levels. “There are infrastructure shortfalls and mismatches, the institutional structure of the freight sector is inappropriate, and there is a lack of integrated planning. “Information gaps and asymmetries abound; the skills base is deficient; and the regulatory frameworks are incapable of resolving problems in the industry.” This failure was attributed to “an inappropriate institutional and regulatory structure that does not punish inefficiency and reward efficiency”. In a system which is currently judged on system-level performance, the NFLS “signals a shift towards demand-driven” delivery of freight logistics services, it said. An area of concern amongst members of the freight industry was the statement that government required “a more interventionist approach to regulating” the freight system. This triggered fears that the industry might move from its current deregulated environment to the previous regulated state – but no clarity on this statement is included in the NFLS. Another area under question is the government’s attitude to privatisation of the state-owned transport infrastructure – with “concessioning” having been the watchword for the future of the parastatal operations until just a few months ago. Privatisation rejected But the NFLS seems to confirm that privatisation per se, is now rejected – and that state ownership will continue in much its present form. “The vision articulates the need to own infrastructure in three ways,” said the document. “State infrastructure utilities that have a strategic and economic development mandate; state-owned enterprises that are commercialised public infrastructure owners with socio-economic obligations rather than a pure profit agenda; and private sector infrastructure owners.” However, it still hints at more private sector involvement, although not defining just how far this would go. “These infrastructure owners need to be sufficiently separated from operators,” said the document, “to allow the introduction of competition in the public-owned and operated infrastructure. “This must be accompanied by the creation of space for private sector involvement in ownership, funding and operation of infrastructure.” FTW is currently waiting for a full analysis of the NFLS from the private sector bodies in the freight industry.
