Controversy over leasehold
contracts in new port bill
Terry Hutson
DURBAN PORT manager Nozipho Sithole has dismissed reports that the National Ports Authority Bill contains a ‘mafia’ clause allowing the NPA to unilaterally cancel leasehold contracts involving Maydon Wharf 110 businesses.
Sithole told FTW at the weekend that only by properly reorganising Maydon Wharf operations could the NPA deal with ageing infrastructure, upgrade quay walls and improve efficiency by streamlining the area.”
She said every endeavour was being made to reach an amicable solution with the affected parties. “It is not our intention to adopt ‘mafia’ tactics. As a credible corporate citizen we are sensitive to market issues and we have to bear in mind that should we adopt these unsavoury tactics, we would definitely lose credibility and be unable to attract foreign investment.”
During an airing of the draft NPA Bill before a parliamentary transport committee meeting last week, opposition party spokesman, Jan Slabbert of the IFP, said it contravened common law rights because of its ‘mafia’ clause.
The controversy arises over leases that date back to the early 20th century that have long ceased to be market-related. Some of the rentals are said to be lifelong at levels of R10 a year. The draft Bill would permit the NPA to renegotiate these and even declare some to be invalid if necessary.
The NPA says it intends creating clusters of modern terminals in the Maydon Wharf area in line with industry.
“The Port of Durban is fairly closed in, with lack of adequate space for expansion. In this particular area we are not receiving a proper return on the land. Port land is scarce and is required for port related business, which is imports and exports. Non-port related business such as manufacturing is non-existent at ports globally,” says Sithole.
