Ports
GENERAL
The Council considers the ports as a fundermental component to promote and facilitate international trade, specifically South Africa's strategy to become a net exporting company.
In terms of the overall costs of the logistics channel, service levels in South African ports are non-negotiable. These service levels obviously have to be balanced against the cost, but given the impact that poor port service levels may have on the other cost components such as demurrage on delays of ships, longer lead times, cost of capital etc., service levels must be guaranteed.
POLICY STATEMENTS
BUSINESS VS REGULATORY MATTERS
The South African Shipper's Council wants to see a clear distinction between business matters in the ports and regulatory matters. In this regard, the Council is of the opinion that ports are to be run on basic commercial principles and should be allowed to earn a return on investment in order to facilitate development and further investment. In terms of such a commercial approach, it is however of crucial importance that port services have to be charged in terms of services rendered and not on an ad valorem basis. It is perceived that a value-based service charge fundamentally inhibits, even discriminates against adding value. This, in the Council's view, is directly contradictory to the intention to create jobs and stimulate industrial growth in the South African economy.
PORT AUTHORITY
It is the view of the Council that the ports should follow the international trend to establish a port authority which should function separately from operational entities. Operations in the port should either be fully privatised or could be run through joint ventures with government, provinces and even local authorities. Such Port authorities should have shareholders from relevant parties and should be managed by a board of directors with representation from industry.
The port authority is to play the role of:
Landlord
Provisor of major infrastructure, such as quays, marine access etc.
Provisor of marine services
Provisor of industry-based terminals with specific focus on the infrastructure and not the operation of such terminals
Provisor of common user terminals
PORT OPERATIONS
It is the Councils' opinion that private operators -
Would be in an ideal situation to provide industry-based terminals eg for steel, granite, ferro alloys, coals, etc;.
Should not own macro infrastructure in the port, and be appointed by the producers of the relevant products;
Should not be linked to any specific berth, since it is the view that too few berths exist to make this feasible, and
Should be prevented from creating monopolies. Regarding operations from port authority common user general cargo terminals such as the container terminals, the port authority should be encouraged to create joint ventures with private industry.
SELF-SUSTAINMENT
Ports should be self-sustaining and autonomous and are not to cross-subsidise other aspects of the overall Transnet structure. Income should be applied to the development and maintenance of the ports. Specific concern is recorded here regarding port income being directed towards the Transnet Pension fund deficit. It is the Councils' view that Government should deal with the pension fund deficit as a problem in a different dimension. Income from the ports may be sufficient to finance a number of the initiatives in South African ports that are currently being debated.
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