TNPA to revise conditions for new passenger terminal bids

Commentators have suggested
that something may be amiss
about the terms and conditions
laid down by Transnet National
Ports Authority (TNPA) in
the tender process for the
Port of Durban passenger
terminal. This after only one
bid was submitted despite 23
companies displaying interest.
Calls have gone out for the
whole tender process to be
investigated.
“Although the TNPA’s CE,
Richard Vallihu, said this
possibly demonstrated ‘limited
appetite in the market’, that’s
absolutely ridiculous,” an FTW
source said. “The market is
crying out for business, which
suggests there’s something
wrong with the conditions
laid down by the TNPA in its
contract.”
Durban port manager,
Moshe Motlohi told FTW
he did not disagree, but he
pointed out that plans were
afoot to adjust these. “TNPA
is reviewing the current
economic environment and
operational needs of the port,”
he said, “and the scope of this
project will be scaled down
accordingly.
“We are optimistic that the
next process – in which the bid
will be open for a period of six
months – will allow potential
bidders to prepare the bid
documents comprehensively,”
he added.
Motlohi said he was
confident that the third bid
would attract prospective
bidders.
In this second round, 25
RFP documents were sold,
and 23 companies were
represented at last year’s
briefing session. But only
one bid was received, and
it was rejected by TNPA as
being ‘administratively and
substantively non-responsive’.
“It just doesn’t stand to
reason that 22 of the 23
interested parties would
walk away from it after the
cost of purchasing the RFPs
and the cost of research in
preparation for the bid,” said
the FTW source.
He then raised the point that
the tender was for bids from
companies in the private sector
that were prepared to “design,
develop, construct, maintain
and operate” the new terminal.
“It raises the possibility that
conditions in the contract
may mean that this company
may have to take all the risks,
but without any long-term
security.”
One part of another
statement from TNPA, he
added, may just confirm his
assumption. In this, TNPA
said it would embark on a third
open-bid process within six
months “and would also review
the scope of the project”.
And Motlohi did indeed
confirm this.
“It is possible,” he said, “that
a successful bidder could be
appointed by the end of 2016.
The duration of the project
would be dependent on the
revised scope and plans put
forward by bidders.”