IVS makes history with first service level agreement

THE FIRST of the long awaited service level agreements (SLAs) between the South African Port Operations (SAPO) and shipping lines has begun with the signing of a contract between the Richards Bay multi purpose terminal and Island View Shipping (IVS). Managing director of IVS Tim McClure told FTW that the contract was the result of many months of intense negotiation and that that IVS was busy negotiating a similar contract with the dry bulk terminal at Richards Bay. "We're happy to have led the way and believe this is the right way forward for all of us if we want efficient service in the ports. In the two months since we To page 20 From page 1 signed we have had to reward SAPO and they have had to recompense us, so it's about even at the moment." He said he hoped the rewards that SAPO would receive would go towards further improving service levels in the ports. Since IVS led the way a number of contracts have been signed with other shipping lines, says Justice Luthuli, business unit manager of the Richards Bay multi purpose terminal. "If the terminal works the vessels well and the ship is able to sail early then South African Port Operations will be rewarded, but if not then it is for us to recompense the lines for an agreed rate," he said.