By privatising Durban current disadvantages raised by high cost inputs, tariff charges and transport costs could be reduced.
IF THE South African government designed a concession system limiting the private operator to handling mainly transhipment cargo, then its offer would probably join the ranks of unbankable propositions.
That's the view of Captain Tony Holland, P&O Ports manager for Africa, who believes that concessionaires must be able to compete on an equal basis with other operators for all the port traffic.
Privatisation would probably encourage competition between ports in southern Africa and international ports. He says that by privatising Durban current disadvantages raised by high cost inputs, tariff charges and transport costs could be reduced.
Apply world class operational standards to Durban with the consequential reduction in ship waiting time, and the transport component of that disadvantage would be significantly lower.
Even a 20% improvement in berth efficiency by privatisation would offer berth windows to mainline vessels which would allow the private operator to aggressively market not only for Australian and European trade, but for the Asian and East Coast South American trade, he said.
Holland said that the average container ship queueing in Durban during 1997 waited approximately one day, and this situation is expected to deteriorate.
