Industry gamers have welcomed Transnet’s announcement of shortlisted corporations for its programme to improve Durban Container Terminal Pier 2 (DCT2) and the Ngqura Container Terminal (NCT) in Gqeberha, previously known as Port Elizabeth.
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Transnet indicated in a Sens assertion that it intends to create a 25-year particular function automobile (SPV) between Transnet Port Terminals (TPT) and the successful bidders. It says the deal is not going to require the disposal or sale of any terminal belongings and that the terminals shall be totally reverted to TPT after the 25-year interval.
It goals to enhance the industrial efficiency at DCT2 by bringing in a accomplice with worldwide terminal operations expertise.
“Transnet is repositioning Durban as a gateway hub port, and plans for significant growth in container capacity over the coming years,” it provides.
The most popular bidder for the NCT shall be anticipated to deliver in extra transshipment volumes and enhance terminal efficiency after years of making a loss.
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“Partnering with global port terminal operators and shipping lines offers the opportunity to attract much-needed investment [and] instil best-practice management and enhanced technological capability to rapidly improve the performance and volume throughput at the Ports of Durban and Ngqura.”
Shortlist
Transnet introduced the shortlisted bidders as follows:
DCT2
- APM Terminals AMI Management DMCEST
- China Harbour Engineering Company Ltd and Guangzhou Port Co. Ltd
- Cosco Shipping Ports Limited
- DP World Limited
- Global Ports Services Pty. Ltd
- Grindrod Freight Services Pty. Ltd and Hamburger Hafen Und Logistik Aktiengesellschaft
- International Container Terminal Services Inc
- Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd
- Star Classic Investments Limited and Abu Dhabi Ports
- Terminal Investment Limited and Remgro Limited
NCT
- APM Terminals AMI Management DMCEST
- Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd
- Star Classic Investments Limited and Abu Dhabi Ports
- Terminal Investment Limited and Remgro Limited
Welcome progress
Nigel Ward, president of the Durban Chamber of Commerce and Industry, says the transfer will enhance and help South Africa’s competitiveness over time and give companies a chance to entry markets.
Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen says it paves the way in which for revolutionary private-public partnerships geared at enhancing port efficiencies whereas bringing important investments and abilities into the nation.
She says the curiosity of operators with worldwide experience and help networks is encouraging.
“This will help with the implementation of global best practices which in turn should significantly improve port efficiencies in the medium- to long-term.”
Ward says that whereas the Durban chamber has not but been capable of acquire a broad understanding of the businesses’ capabilities, it’s assured that Transnet carried out the required assessments and due diligence.
“We imagine that Transnet wants to interact in participative, facilitative, and accountable governance all through the method. Furthermore, a co-operative and significant relationship between Transnet and the chosen [partners] must be developed.
“We would like to caution key stakeholders against corruption and illicit activities. If checks and balances are not implemented and exercised, projects of this nature can translate to huge costs,” he provides.
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Ward says a plan of motion and punitive penalties are key to preventing corruption.
Invest Durban CEO Russell Curtis notes that the key challenges are in the timelines and governance.
“We therefore look forward to speedy and wise implementation, underpinned by a fully transparent, auditable selection process. Our country and her patriots deserve nothing less,” says Curtis.
Transnet says the bidders shall be invited to proceed to the request for proposals (RFP) course of and could have till December 2022 to submit their proposals for adjudication.
The most popular bidders for every terminal are anticipated to be appointed by February 2023.
Nondumiso Lehutso is a Moneyweb intern.