MoU addresses ‘uncompetitive practices’ in port system

Transnet National Ports Authority (TNPA) has signed a memorandum of understanding (MoU) with the Competition Commission to probe the possibility of any uncompetitive practices within the South African ports system. TNPA chief executive Shulami Qalinge said the signing of the MoU was aligned with the authority's role to act as an overseer of the ports system in terms of the National Ports Act. She made the announcement at a recent meeting at the Ports Regulator of South Africa's offices in Durban. "As the NPA we have a responsibility to ensure that we assist our stakeholders to trade globally. We acknowledge that efficiencies are not always in line with global standards and that port efficiency and competitiveness are two critical elements that we must consistently improve on," Qualinge said. "We have finalised the MoU with the Competition Commission to address the issue of uncompetitive behaviour in the ports system.” Qualinge said that the authority had an oversight role to play to ensure that terminal operators and port users complied with existing agreements going forward. "So it is in that spirit that we had to enter into such an agreement with the Competition Commission because at times when we try and address the noncompliance  issue we will be challenged by port users and some would run to the competition commission," Qualinge said. "We had to have an understanding that we have accountability and responsibility as the ports authority to play that oversight role which is what the Ports Regulator expects us to do. There is an allegation that we are favouring some of the operators but now we need to ensure that we are fair and just to everybody that we do business with in our ports," Qualinge said. National Ports Consultative Committee representative Selma Schwartz-Clausen said the singing of the MoU was a welcome move for the industry. South African Association of Ship Operators and Agents (Saasoa) chairman Malte Kersten said the signing of the MoU showed that the Competition Commission would now also be keeping an eye on the competitiveness of the port system. The Competition Commission had not responded to questions regarding the scope of the MoU at the time of going to print this week.