TNPA set to performance-manage terminal operators

Efficiency within South Africa’s port system is crucial if the country wants to address costs in the longterm, says Nico Walters, general manager strategy for Transnet National Ports Authority (TNPA). In 2012 TNPA issued new operating licences to all terminal operators within the eight ports of South Africa in terms of the Ports Act. “This Act stipulates that every operator within the port system had to be issued with a licence and this was the first process that we addressed and have now completed,” said Walters. “Over and above the issuing of these licences TNPA embarked on a process of issuing all terminal operators with performance targets that will come into effect when the next financial year starts in April.” He said these performance and efficiency targets were discussed and negotiated with each individual terminal operator based on where they were situated and what commodities they were handling. “Every terminal operator within the South African ports system will now have a target to meet at the end of the next financial year.” Walters said this was all aimed at creating a more efficient port system in the long run. He said terminal operators would be held to the set targets and would be monitored throughout the next financial year. “When we see an operator is not meeting the target set we will step in, establish the reasons and put in place measures to turn the situation around.” Walters said for the first time this process would allow South Africa to establish some kind of norm against which to measure operations and determine whether efficiency was improving. CAPTION Nico Walters ... ‘Every terminal operator will now have a target to meet.’