RB container terminal action lands TNPA in the dock

Alleged anti-competitive behaviour by Transnet National Ports Authority (TNPA) over the establishment of a container terminal at the Port of Richards Bay is under the spotlight at an appeal hearing before the SA Ports Regulator. And it has been revealed that the world’s biggest liner operator, Maersk Line, supported the case made by complainants, Siyakhupuka Investment Holdings. The complaint is based on the grounds that, on January 25, 2008, the complainant submitted to TNPA a proposal for a container terminal to be situated at the Port of Richards Bay. According to the regulator’s records, Siyakhupuka alleged that its proposal was rejected. But it found out later that its proposal was handed to Transnet Port Terminals (TPT) – which had started a container terminal operation at the site proposed by the complainant. It further alleged that TNPA was abusing its power in ports in that a consultative and transparent process was never followed for TPT to occupy and operate a container terminal in that area. Since then, Siyakhupuka MD Jan Scheepers said, Transnet has made numerous objections against containerised services “without reason or adherence to the National Ports Act”. “Despite his strong case….,” wrote Mia Moorcroft in the Zululand Observer, “Transnet has maintained Richards Bay operations must focus on its four main activities – exporting coal, breakbulk, dry bulk and liquid bulk.” This, Moorcroft added, despite years of appeals to Transnet from industry and municipal leaders for a fully functional container terminal in Richards Bay. She also further quoted Scheepers saying that the terminal would have a massively positive impact on the regional and national economy. “It would solve the development blockage in Zululand,” he added, “secure funding and partnership for development; provide an emergency alternative for container exports and imports through Durban; open new export markets for Zululand and create thousands of jobs. “The establishment of global container shipping connections will be the single biggest event since the construction of the port.” And this would be fulfilled by Maersk, which backed Siyakhupuka’s intention of establishing the container terminal at Richards Bay. Having identified the need for these facilities in 2005, Siyakhupuka entered into a series of discussions with the Danish shipping giant. “More than two years of negotiations resulted in an agreement relating to Richards Bay,” said the submission document submitted to the regulator by Siyakhupuka. “Maersk Line would include the Port of Richards Bay into their international container hub system, provided that an efficient container terminal at Richards Bay would service their vessels operating within their hub system,” it added. “As a consequence Maersk Line nominated the sister company in the group, APM Terminals, as a partner in the funding to develop and operate a terminal suitable to fit into the Maersk Line hub system.” Meantime, the TNPA has refused to make any comment on the hearing. A statement from the authority said: “This matter is presently sub-judice and it is against the law for TNPA to engage publicly around it.” A spokesman for the Ports Regulator told FTW that the next hearing would be on May 6-8, “for further evidence to be presented”. The matter has also been referred to the Competition Commission and is currently under review, according to the regulator’s records.