NPA makes Tema its first stop in Africa expansion drive

THE NATIONAL Ports Authority (NPA) is poised to sign an agreement to help run the terminal at the port of Tema in Ghana. It is also holding preliminary talks with Mombasa authorities for a similar undertaking in the East African port. “We have established a separate division called Portcon which will drive our international expansion plan,” says NPA chief executive Siyabonga Gama. “The Tema agreement will be the first step in our strategy to expand into Africa and possibly even beyond the African continent. The aim is that Portcon will contribute about 30% of NPA revenue by 2010.” The Tema contract has been accepted by the board of Transnet which is awaiting approval under the Public Finance Management Act prior to the formal signing of the contract. This will give Portcon the right to run the Tema clearing and delivery terminal for 25 years in conjunction with a local partner. Gama has stressed that the move to garner external revenue is not related to the state’s concession plans. Instead it is connected to a tariff restructuring exercise. NPA anticipates a revenue loss of R900m annually as a result of its new structure for wharfage charges, which have long been high by world standards. Other services, such as harbour dues and container movements, have generally been below world standards, says Gama, and the adjustment to the tariff structure is aimed at introducing a more competitive system. Wharfage fees will be reduced while some cargo handling fees will increase. Apart from talks with Kenyan authorities, Portcon is also involved in talks with port officials in Angola and Nigeria, the Caribbean, India, Lebanon and Cape Verde Islands. All have expressed interest in the South African proposals, he said. “The biggest challenge facing port authorities in Africa is customs clearance hurdles. It can take anything between 15 and 45 days to clear cargo in Nigeria for example, which is interesting when compared to the threat from shipping lines last year who wanted to impose surcharges in Durban harbour for delays between 16 and 72 hours.” Public Enterprises Minister Jeff Radebe announced in parliament last week that government’s plans for cocessioning terminals in this country were moving ahead at a swift pace. The tender for the running of Durban’s container terminal is expected to be issued within the next two months.