NPA grants FPT long-term terminal leases

Stage is set for empowerment stakeholder Ray Smuts CAPESPAN SUBSIDIARY Fresh Produce Terminals has further secured its quayside cooling status by concluding a long-term lease agreement with National Ports Authority, paving the way for foreign investment and black empowerment participation. A clearly delighted Ronnie Kingwill, m.d. of FPT, said last week: "Perseverance with the NPA clearly won at the end of the day in that we were able to conclude a commercial lease agreement for the Cape Town, Port Elizabeth and Durban terminals in line with their new approach and new tariff structures. "Effective from January 2003 we will be fully operational with FPT as the lessee, and in that context we will be the fully independent terminal operator, no longer an agent for Capespan." (Previous leases were ceded from Outspan to Capespan and then to FPT). NPA has based consideration of the lease on the capital investment at quayside, in excess of R200 million over the past ten years with more to come. Other provisos are that ownership of all immovable FPT property revert to NPA on conclusion of the agreement and that black empowerment within the organisaton be promoted and encouraged. Now that the agreement is in place Capespan can proceed with protracted negotiations to bring in, as a 50% stakeholder in FPT, The Mersey Docks and Harbour Company. The next round of talks takes place in London next month but it is unclear whether the amount of R100 million originally mooted will change or not. Along with the new partnership comes black empowerment participation. A potential stakeholder has been identified who will acquire 10% in FPT through an intermediate company giving it a 20% share in that company. "It is certainly our wish and that of our customers that the new stakeholders are on board by January 2003."