TNPA puts PPPs back on the agenda

The phrase “public-private partnerships (PPAs)” is back in vogue again, according to Chris Matchett, Transnet National Ports Authority (TNPA) executive head infrastructure. This after the concept became a bit of an expletive at government level, slammed by union body Cosatu some years back. “Eighteen months ago PPPs were not on the cards,” he said, “but the climate is changing dramatically.” It’s an exercise in simple logic, he explained. The authority has compiled a port development framework plan for each of its commercial ports, and these plans include a 30-year cargo forecast and indicate that SA will have to invest more than R230-billion in its port infrastructure during that time. “Transnet just can’t afford that,” Matchett told FTW. Also, PPPs can transfer part of the risk of a venture to the private sector participant, and not let the development risk reside solely with the TNPA. The areas on which PPPs could focus would probably start with container terminal development and operations, he added, but not excluding private investments in other, more basic infrastructure. “My guess is that we will see the start of projects going out on that basis in the next two years, or even sooner,” Matchett said. TNPA is busy setting up internal workshops on how to approach PPPs. Questioned on when contact would be made with the private sector, Matchett termed it: “Still early days. “And I don’t have the mandate (for negotiation). I’m pushing it from purely the planning point of view.” But the private sector is keenly interested in the idea. The Grindrod group – one of those original port operation players – is still in favour of the concept, according to Dave Rennie, MD of Grindrod Freight Services, and a group director. “It sounds like expansion plans,” he said, “and that means investment is needed, and is something which would create jobs. “I think it should be encouraged,” he added, suggesting that he would discuss this further with senior Transnet management. Ian Hall, MD of DP World Cargo Services, was equally enthusiastic. “DP World as a group will be very interested in that coming back on the table,” he told FTW. Indeed, it was the original reason for the company being in SA. It came out here at the turn of the century as P&O Ports – with the sole intention being involvement in the “privatisation” of port terminals. Indeed, after the takeover by DP World, the only reason it changed its product portfolio to valueenhancing additional cargo services beyond its core port stevedoring business, was because terminal privatisation seemed to have disappeared over the horizon. “The DP World objective is to invest in Africa,” Hall said. “SA is therefore an important part of its investment plan – and it will explore any possibility of a public/ private partnership in this country’s ports.”