Boost for SA ports? Ramaphosa announces new stand-alone business under Transnet
South Africa has some of the most inefficient ports in the world.
Now President Cyril Ramaphosa has announced the establishment of the Transnet National Ports Authority.
The country's ports authority will become an independent subsidiary of the parastatal, with its own board.
The president described the move as major reform that "will increase the efficiency and competitiveness of our ports and enable greater investment in port infrastructure".
President @CyrilRamaphosa today announced that the National Ports Authority will be established as an independent subsidiary of Transnet with its own board. #SONA2021 #OperationVulindlela (1/2) pic.twitter.com/TrnisNaM4P— Presidency | South Africa 🇿🇦 (@PresidencyZA) June 22, 2021
Ramaphosa said an essential part of addressing the current challenges is to create "a clear separation" between the roles of the infrastructure owner, which is the Transnet National Ports Authority, and the terminal operator, which is Transnet Port Terminal.
Transport economist Hlulani Mokwena has mixed feelings about the ports announcement.
On the one hand, yes, we are moving in the right direction in terms of government policy which is really to enhance private sector participation.Hlulani Mokwena, Transport economist
There are some issues around the independence of an entity that will still be a subsidiary of Transnet, especially given that we are getting to that point where operations and infrastructure need to be separated and this is one step in that direction...Hlulani Mokwena, Transport economist
... but there some nuances that must still be untangled by the ports regulator when they look at it.Hlulani Mokwena, Transport economist
For more detail listen to the interview on The Money Show:
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