Perishable exporters revive port privatisation calls

South Africa’s ports need competition – it is the only way a more cost-effective, efficient service will be delivered to exporters. They are considered to be the most expensive in the world, with productivity not always up to par, and perishable exporters are at the mercy of this monopolistic system. Voicing their concerns at the third Cool Logistics Africa conference recently held in Cape Town exporters said South Africa’s one-horse race was a concern. “In Europe if you are not happy with the service at one terminal you go to another or you move your cargo to another port altogether. In South Africa we have no choice but to use Transnet’s service,” said one exporter. “There is no competition and so there is nothing driving productivity. There is no benchmarking – in Europe you lose your job if you go below 30 crane moves per hour.” And perishable exporters are particularly vulnerable. “Fruit and vegetables don’t hold while stack dates are just cancelled for no reason. Unless we look at introducing some form of competition and benchmarking of some sort South Africa – and African ports for that matter – will hold their exporters back,” said another. Citing the efficiency gains in the Nigerian port system following the privatisation of terminals, perishable exporters said local port authorities had much to gain by introducing competition. “Our port operators are only looking at the returns they are making and not taking the bigger issue of a competitive South Africa into consideration.” According to Wim Dillen, a business development manager at the Port of Antwerp in Belgium, competition has been the driver in the success of the port. “We have 11 breakbulk operators spread out over 14 terminals inside the same port. We like to think the port has its dominant position in Europe because of the highly competitive environment that it has created.” He said customers at the port had choice. “In other words you go to a terminal to get the best price and best service with decent margins. If they do not deliver they lose the business and they know it.” Dillen said there was no doubt that competition had strengthened the Port of Antwerp. INSERT At the Port of Antwerp you go to a terminal to get the best price and best service with decent margins. If they do not deliver, they lose the business and they know it. – Wim Dillen CAPTION The Port of Antwerp in Belgium.