‘TNPA must balance increases with need to be globally competitive’

As South Africa’s port
productivity issues continue
to dominate the headlines,
the likes of Walvis Bay and
Maputo clearly understand the
opportunity this represents and
are driving to improve levels
of service, says Safmarine’s
Africa region executive
Jonathan Horn.
“The ability of economies to
grow depends on their having
world-class infrastructure that
offers importers and exporters
a very competitive supply
chain – because dollars and
cents matter,” says Horn. “In
any country it is fundamental
that you have productive
infrastructure – from ports
to landside – and this applies
as much to South Africa as
it does to any other African
country.
“We are competing against
other economies of the world
which means you have to
scrutinise every element of
your supply chain to ensure it
adds value.”
Commenting on Transnet’s
proposed 18% tariff increase,
Horn says that while such an
increase was clearly high in
the context of current CPI
levels, it’s not only about the
level but also about what that
increase will deliver.
“I’m sure TNPA
understands that at the end of
the day they play an important
role in the economic growth
of the country. We all have
a role to play to ensure that
things work for the good of the
country to make team South
Africa competitive.
“While port users
understand that TNPA must
get a return on investment
and in an inflationary
environment increases are
likely to be necessary from
time to time to achieve that,
these must be balanced
with the competitive global
world in which we operate –
which demands continuous
improvement in efficiencies
and cost-competitiveness.
Everyone must scrutinise
their own operating costs and
efficiencies to see where they
can continuously improve in
terms of their own productivity
and take costs out of the supply
chain.”