Transnet needs private partners to reduce costs

Transnet can only realise its ambition of being a low-cost port and logistics company that creates an environment in which South African exporters can be competitive globally if it brings in the private sector as partners. Speaking at a recent Transport Forum in Durban, Transnet group executive for new business growth and diversification, Herbert

Msagala, said this would include the concessioning of certain in-port operations to the private sector. “Transnet should not be the only terminal operator,” he said. Brenda Magqwaka, general manager in the office of the chief executive of Transnet Port Terminals (TPT), stressed the importance of collaboration between the private sector and the state utility.

She said Transnet wanted to move away from being an “asset heavy” company to a lean logistics service provider. “For us to be able to provide an integrated logistics service we have to integrate with industry to provide speed and efficiency.” A first step is the signing of a R100 million partnership agreement between Transnet and agribusiness Afgri to upgrade grain-handling

facilities at the ports of Durban and East London. Afgri and TPT will share the planning and scheduling of landside and quayside operations, health and safety, as well as legal matters, while facilities management, human resources and public interaction, among other services, will be handled by Afgri. Transnet, however, will retain ownership of the upgraded facilities.