Congestion delays, related costs and increasing cargo theft came under the spotlight at last week’s 2-day Ports & Shipping Efficiency conference in Midrand organised by the Institute for International Research. Leonard Neill filed these reports. POTENTIAL INVESTORS in South African ports will be reluctant to tender for concessionary rights when faced with some of the conditions in the present National Ports Authority Bill, said Tony Norton, chairman of the National Port User’s Forum. In terms of the bill the NPA has the right to terminate at any time the leases of those it is trying to attract to develop existing berths by way of concession, he says. Addressing the Ports & Shipping Efficiency conference, he said that the crucial point is that future concessions will be just as much subject to the NPA’s right to expropriate long term leasehold rights as existing long-term leases. “Furthermore, any further investment in the port areas that rely on leasehold property will also be compromised. “Also, many leaseholders are financed through third party financial institutions. There are many different structures available to financiers. They are able to finance on the basis of taking security by way of mortgage bond over the registered long leases, taking cession of the leases concerned or through listed property funds. “In the circumstances, it is not only the rights of the current operators of leasehold properties that are affected but also the rights of financiers of those leases.” The Forum has argued against this form of arbitrary power granted to the NPA, he said, but this objection was overruled before the Bill was passed. “In terms of the Bill, the NPA will remain part of Transnet which has a substantial monopoly on the transport infrastructure in South Africa. When it is excised from Transnet it will continue to retain a monopoly on all port resources and will be in a position to treat parties differently in respect of those resources and exercise other aspects of monopoly power. “It will also, very importantly, determine the port charges payable in South Africa. It is for those reasons that we believe that it is absolutely essential that the NPA be regulated, both as part of Transnet and in the future as a stand-alone entity.” One of the cranes on order for the Port of Durban . . . the 15 major lines calling at Sa ports have suffered an estimated annual collective loss of US$223m through delays.
