Private sector welcomes opportunities in ports, IDZs

Government has signalled a willingness to allow private sector investors, developers and operators into the ports and industrial development zones. In his budget speech to parliament, finance minister Pravin Gordhan said “private sector capacity can also be mobilised through construction and operating concessions, for example in the management of industrial development zones, freight logistics and port operations”. The 2012 Estimate for National Expenditure adds that one of the goals is to develop a “framework for private sector investment in rail by the end of 2012/13, to assist with the provision of necessary infrastructure where such investments are unaffordable on the Transnet balance sheet”. This would include the introduction of multiple private operators on the branch line network within the first quarter of 2012/13, and “facilitate the introduction of competition for the management of container terminals through the licensing of an operator for the Ngqura container terminal by 2014”. This thinking is based on successes in other sectors: “Access to telecommunications services is financed by private operators, and our airlines industry has several private sector players. It is one of two references to “logistics” by Gordhan in his speech. “Over the MTEF (medium term expenditure framework) period ahead, approved and budgeted infrastructure plans amount to R845 billion, of which just under R300 billion is in the energy sector and R262 billion in transport and logistics projects,” he said. The main transport focus was on the movement of passengers. “Transport” was mentioned nine times in the speech of around 8 900 words. According to the 2012 Budget Review, R25.5bn will be spent on provincial roads maintenance between 2012 and 2015 – including provision for disasters. The Department of Transport has also been allocated an additional R1,2bn in 2012 for the repair of flood-damaged road infrastructure. The Estimate for National Expenditure places more emphasis on logistics, stating that the government plans to “ensure the global competitiveness of the South African freight logistics industry by implementing national corridor performance tools and indicators to quantify the operational efficiency of freight corridors in 2012/13”.