Performance agreements key to improving productivity

Performance measurement is key if Transnet National Ports Authority (TNPA) wants to transform South Africa’s ports in line with the organisation’s Market Demand Strategy (MDS), said Sipho Nzuza, port manager at the Port of Cape Town. “For the first time we have included performance agreements in the licence and leasing agreements with the terminal operators in an effort to benchmark efficiency and service levels,” he told FTW recently. “And so far it is going well at the Port of Cape Town. We have taken all of our terminal operators through the process and explained what our expectation is and that they will be monitored throughout the duration of the agreement. The performance agreements have been signed with each operator up front. They know what is expected of them and the consequences should they not deliver.” Tasked with growing volumes and turning over a profitable balance sheet, Nzuza believes that performance agreements with operators are a step in the right direction. “We need to have benchmarks in place that determine what operational efficiencies we expect. We will monitor our terminal operators over the next few months to see if they are achieving those set targets, and if not, it is essential that we determine why not. It is the only way we can address concerns over efficiency and service delivery over the long term.” He said what made the new system so valuable was that terminal operators, including Transnet’s own operator, Transnet Port Terminals (TPT), were very aware of the consequences of not fulfilling their side of the agreement and that sanctions would be applied should they not meet the set targets. “Our mandate as port managers is to transform our ports to ensure delivery on the MDS that will see the organisation spend R300 billion in expanding its rail, port and pipeline infrastructure,” said Nzuza. “Each port has its own strengths and dominates in a specific cargo area. While we have to deliver on that, it also means that we have to transform the entire port system in the country if we want to grow the economy and become a globally competitive country.” He said this included improving financial sustainability and growing volumes within the port system “The strategies that will turn around our business are being crafted at present while we are also making sure we have the right people in the right positions to bring about that change. At the same time it also means taking care of our customers and instilling that very culture within our organisation,” he explained. “It is all about building economic infrastructure that will facilitate the movement of goods efficiently at an affordable rate. Service delivery to our customers is extremely important.” He said for that very reason a performance dashboard would be erected in the reception area of the port to ensure that everyone entering the building was aware of what was being done at ground level in terms of volumes and service. “We need to talk about what we are doing, about Transnet and sharing that information with our customers and stakeholders is crucial as we work towards improving our performance all round.” INSERT ‘Performance dashboard will be erected in the reception area of the port to ensure that everyone is aware of what is being done at ground level.’ CAPTION Benchmarks will determine what operational efficiencies are expected.