Transnet sets up internal workshops on way ahead for PPPs

The prospect of public/
private partnerships (PPPs)
in Transnet developments
is getting closer, according
to Chris Matchett, Transnet
National Ports Authority
(TNPA) executive head
infrastructure.
There is nothing firmly
on the board right now, “but
there is a lot of numbering
now taking place,” he told
FTW.
It’s all part of a “growing
realisation” that funds in
government departments are
anything but inexhaustible,
and that financial ambitions
have to be restrained by
just what Transnet’s gearing
justifies.
Parastatal Transnet’s
balance sheet cannot
accommodate the
R230-billion, 30-year port
development plan as it
currently stands, according
to Matchett.
“This is why public-private
partnerships (PPPs) are
becoming a viable proposal.
Eighteen months ago PPPs
were not on the cards, but
the climate is changing
dramatically. We are setting
up internal workshops on
how to approach PPPs.
“My guess is that we will see
the start of projects going
out on that basis in the next
two years.”
Part of this lies in the
multi-billion aspiration for
TNPA to develop another
Durban port on the site of
the old airport.
“We’re quite bullish about
this,” Matchett said. “And
the way we’re looking at it
is that the operators of the
various facilities will be
private sector.”
TNPA intends this
allocation to be governed
by the conditions of the
National Ports Act.
“They would go out
into the market on an open
tender basis,” Matchett
added, “where Transnet
Port Terminals (TPT) might
also be involved, but where
the final decision will be
dependent on the bids made.”
He even sees the private
sector being involved in
the basics like quay wall
development.
“I can see us tracking
backward to get PPPs
together for infrastructure,”
Matchett said. “Here they
would have a very real
return in a specific time
from port tariffs, which
would make it an extremely
attractive proposition.
“At the same time we
would benefit from outside
funding, because something
like this could never be a
go-it-alone situation.”
It also has to be seen as
a concept that would help
to improve SA’s logistics
competitiveness not only
with our fellow developing
economies, but even with
those of more developed
nations.
This chase was
highlighted in a report
detailing research into
transport and logistics trends
in the decades ahead, which
was released to FTW by
Pricewaterhouse Coopers.
It suggested that trade
volumes would shift towards
emerging markets and least
developed countries would
take their first steps into the
global marketplace – and it
named Brazil, China, India,
Mexico, Russia, SA and
Turkey as among primary
players (See page 20).
Imperial Logistics
marketing director Abrie
de Swardt even took this
concept one step further.
He believes that SA has
the potential to outperform
much larger and more
established economies.
“As logistics and supply
chain processes enable or
disable a country’s expansion
and growth and thereby
its global competitiveness,
SA’s rating of 28th out of
155 countries on the global
Logistics Performance
Index (LPI) indicates an
increasingly competitive
sector, with the potential
to outperform much
larger, more established
economies,” De Swardt said.
Excluding high-income
countries such as Germany
and the USA, SA is among
the top 10 logistics overperformers
in the survey,
keeping company with the
likes of China and India, he
added.