SA ports authority to help run Tema Port

THE National Ports Authority (NPA) is poised to sign its first long-term concession agreement in Africa this week, having clinched a deal to help run the terminal at the port of Tema in Ghana.

The multimillion rand agreement is the first step in the authority's strategy of expanding into Africa and beyond, with talks being held with authorities in Angola, Nigeria and Kenya. Entities in India, the Caribbean, Lebanon and Cape Verde have also expressed interest.

The authority's international expansion comes as government seeks to bring the private sector in to help run port terminals in SA, with a tender to run Durban container terminal due to be issued in the coming months.

NPA CEO Siyabonga Gama said a separate division had been established within the organisation, called Portcon, to drive the international expansion plan.

"The aim is that Portcon should contribute about 30% of NPA revenue by 2010," he said.

Gama said the move to garner external revenue was related to a tariff restructuring exercise rather than to the state's concession plans. The NPA expects to lose as much as R900m in revenue a year as a result of a new structure being implemented for wharfage charges, part of the organisation's tariff reform process. SA's wharfage charges have long been high by world standards, although other services, such as harbour dues and container movements, have generally been below world averages. The adjustments to the tariff structure aim to introduce a more fair and competitive system, in line with international practice. It will see wharfage fees being reduced while some cargo-handling fees are increased.

In terms of the Ghanaian contract, Gama said the board of Transnet, the authority's parent company, had approved the deal about two weeks ago. "We are just awaiting approval under the (Public Finance Management Act) and expect to sign the contract before the end of this month."

The contract will give Portcon the right to run the clearing and delivery terminal at the port of Tema for 25 years, in conjunction with local partners. Portcon has set up an entity with a local partner to help deliver on the concession contract.

Gama said the NPA was also holding talks with Kenyan authorities about potentially running terminals at the port of Mombasa, among the largest on the eastern seaboard of Africa. He said the biggest challenge facing port authorities in Africa was customs clearance hurdles. It took between 15 and 45 days to clear cargo in Nigeria, for example. By way of comparison, shipping lines threatened to slap a surcharge on cargo going through Durban harbour last year for delays ranging between 16 hours and 72 hours.

Meanwhile, Public Enterprises Minister Jeff Radebe said last week that government's plans for getting the private sector to run terminals were moving ahead swiftly.