Transnet National Ports Authority (TNPA) has outlined its Island View Precinct Strategy which will require its existing tenants to bid for tenders along with other businesses in an open public process in order to secure premises in the precinct.
TNPA senior managers briefed the media in Durban yesterday after addressing tenants and representatives of the petrochemical industry in a closed consultation session this morning.
Nico Walters, TNPA general manager: strategy, said the plan was in line with the National Ports Act, which required the authority to provide adequate, affordable and efficient port services and facilities, to ensure transformation of port operations with greater participation by historically disadvantaged people, and to ensure security of supply of strategic liquid bulk commodities.
Walters said the strategy would impact 14 current lease holders who were renting on a month-to-month basis, as well as an additional tenant whose lease for three sites expired in 2020.
“We have historically, tenants who have enjoyed a very long tenure of in excess of 50 years, which has contributed to the slow transformation within the precinct,” Walters said. “The outcome we seek to achieve with the strategy is radical economic transformation and job creation, to have investment in the ageing infrastructure and capacity allocation to new entrants within the liquid bulk industry to ensure equal access.”
He said TNPA required a minimum of Level 4 BBBEE with 51% black ownership from bidding terminal operating companies.
“The second important principle is that we want to separate cargo owners and terminal operators and that principal talks to the fact that we want to have cargo ownership limited to 49% of the terminal operating company.”
Walter said another key principle was to attract new entrants to the precinct. “If there are any current terminal companies that hold a majority share in any of the facilities, in future, if they become a member of a joint venture they will not be able to hold more than 49% of that joint venture.
“All the leases will go through an open process and TNPA will consider the tenure in future in line with the condition assessments of the existing facilities and the terminal operators investment plans but we will cap that at a maximum of 25 years,” said Walters.
He said TNPA would be seeking to appoint service providers this month (April) to inspect and assess the condition of the current leased premises to determine what refurbishments or replacements of tanks and other storage facilities were needed before embarking on the public tendering process to advertise all affected leases in October 2018. The open process will allow for the shortlisting of bidders who would be eligible to submit final bids.
Acting Durban Port manager, Nokuzola Mkowane, said the strategy was a “historic milestone” and a first in the history of the TNPA .
“It is about balancing the transformation aspect but also making sure we don't jeopardise the security of supply and ensuring there is sufficient investment in infrastructure and it is about radical economic transformation and job reservation and creation is a most important aspect,” Mkowane said.
