‘Measure up or lose your licence’

Port terminal operators will have to shape up or ship out. This was the message from Tau Morwe, chief executive officer of Transnet National Ports Authority (TNPA) at the first Transport Forum for 2012 earlier this month. Speaking at the Port of Richards Bay in KwaZulu- Natal, Morwe said the focus for 2012 was on improving efficiency and this was to be achieved by holding terminal operators responsible for operational effectiveness and productivity. “It is a process on which we embarked late last year and are continuing at present where we are taking a systems view of a port by setting targets for all terminals that have to be met by the operators.” Morwe said TNPA would take on a more comprehensive oversight role in the future in which terminal performance, safety, health, environmental compliance as well as controlling of port services and facilities would be more closely monitored. This will be done through agreements and licences. “In the past we really only exploited existing assets, with TNPA looking at itself as an administrator, a tax collector of sorts,” he said. “The emphasis was not on improving the system and there was underinvestment and a lack of infrastructure and fleet maintenance. There was also inadequate return on aged assets, limited economic regulation, lack of oversight and monitoring of terminal operations.” He said at present this was being addressed by stabilising operations, creating the capacity to monitor port efficiency. “That is why we are including performance monitoring and targets in agreements and licences. In terms of Section 65 of the National Ports Act, licences will be performance-managed through the setting of targets,” he told FTW. “We hope to finish the process of licensing by the end of the first quarter of the current financial year.” He said those not meeting targets could face a range of penalties – from a warning to the loss of a terminal operating licence. “We believe this process will increase efficiency drastically as people will know that for them to hold the licence they will be expected to perform.” He said the targets were based on the terminal type and operators were measured across the board. “In other words all container operators will be held accountable to the same standards.”