PRESIDENT Cyril Ramaphosa has announced the establishment of the Transnet National Ports Authority as an independent subsidiary of state-owned freight logistics group, Transnet, on Tuesday.
This will mean the establishment of an independent National Ports Authority as a wholly owned subsidiary of Transnet, with its own board appointed by the minister of public enterprises.
The president was speaking in Cape Town on Tuesday following a tour of the port.
He added that the launch of the TNPA was part of government’s efforts to accelerate the implementation of structural economic reforms, crucial to enabling a strong economic recovery and to placing the country’s economy on a faster and more sustainable growth trajectory.
Ramaphosa said having an independent NPA as a wholly-owned subsidiary of Transnet, with its own board, will mean that revenue generated by South African ports can be invested in port infrastructure and upgrading facilities.
“There are therefore massive benefits to be realised from reliable, efficient and competitive ports,” Ramaphosa said.
“The weak performance of our ports is the result of structural challenges in our logistics system and operational inefficiency,” Ramaphosa said after visiting the Cape Town port, the second-largest container port by volume after Durban and a vital export hub for fresh fruit and wine.
He said the move will allow the ports authority to make its own investment decisions.
“At the same time, Transnet will remain the sole shareholder of the subsidiary to prevent any negative impact on the group’s balance sheet, and to ensure that the ports authority remains an important part of the Transnet group,” said Ramaphosa.
An interim board will soon be appointed by Public Enterprises Minister Pravin Gordhan.
“This is a significant development because this reform has been delayed for more than fifteen years since the National Ports Act was promulgated,” said Ramaphosa.
“It has taken that long and today, we are reforming this whole process so that we can gain great efficiencies.”
- Inside Politics
