Tenders expected to go out next year
THE GOVERnMENT is following the right path towards the privatisation of Portnet, according to Tony Holland, regional manager (Africa) for P&O Ports.
This follows the recent splitting of the management structure into two - one for the authority (the landlords) and the other for operations. Also the appointment of separate CEOs for each - with operations chief, Tau Morwe, tasked with seeing his various divisions privatised where, and as soon as, possible.
Talking about the privatisation procedure of Portnet, Holland said: I think Radebe (Minister of Public Enterprises) is trying to do this the right way - preparing the business units for privatisation and, at the same time, avoiding clashes with the unions.
First step, he added, is for the management to get its various business units into shape financially prior to their sale. This getting the businesses right, Holland said, means they will get all the more money in the end - and buyers won't need to sink so much into sorting them out.
The procedure and the time-scale Holland sees in three steps.
First, he expects Portnet to bring in consultants to drive that getting things right procedure. This along the lines of the P&O Ports management currently contracted to Portnet in Durban to sort out productivity at the container terminal.
After this, said Holland, they will put together the tender documents - I expect in mid-2001.
Then companies like ourselves, and other international operations, will be here in droves.
Holland also expects a full privatisation at the ports. I think they'll endeavour to get out of operations altogether, he said.
Asked whether this would not naturally encourage inter-port competition - something Portnet has stated it intends to avoid - Holland had a simple answer. Look at other countries which have privatised their ports, he said, and visualise what has happened in these other places re inter-port competition.
We came here in 1998 with the intention of preparing for privatisation. It's on the way.
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