State-owned ports ‘an unpopular model’

Stated-owned ports are an unpopular model in the world today with over 80% of all ports worldwide partly or fully privatised, says Stuart Symington, CEO of the Fresh Produce Exporters’ Forum. “Under the current conditions, it should be the responsibility of the state to make good any losses suffered by the users of the port – especially where mismanagement is concerned,” he told FTW. “But it is a government’s right to decide whether or not it wishes to maintain a monopoly over a national facility like the ports.” Symington however believes that almost everyone in the fresh produce export industry would be in favour of privatising ports. “It would bring about greater efficiencies, including the reduction of costs like that of the highly unpopular cargo dues tax. We are one of the last countries in the world to impose such a tax on port users.” The FPEF has lodged an objection with the Ports Regulator, Riad Khan, over the proposed 11.9% cargo dues hike from April 1, 2011. Also in the melting pot – and likely to progress early next year – is a complaint laid by Fruit South Africa (the umbrella body representing the FPEF and the grower associations in the fruit industry), with the Competition Commission over the congestion surcharge imposed by all shipping lines during the Transnet strike earlier this year.