National Ports Authority Bill: briefing by Transnet

Meeting report

PUBLIC ENTERPRISES PORTFOLIO COMMITTEE
26 February 2003
NATIONAL PORTS AUTHORITY BILL: BRIEFING BY TRANSNET

Chairperson: Mr BD Martins (ANC)

Documents handed out:
Presentation by National Ports Authority (NPA)

SUMMARY
The Committee was briefed by Transnet on the following issues. The purpose and functions of the NPA, the NPA strategic direction, infrastructure planning for Ports and the proposed NPA Bill. The NPA Bill seeks to transfer ports, land and other rights and obligations and corporatise NPA into an independent public enterprise under the Transnet conglomerate.

MINUTES
Mr Gama: Chief Executive Officer, National Ports Authority, outlined the key functions of the NPA which, inter alia, include maintaining and improving port infrastructure as well as regulating navigation, entry of vessels and off-shore cargo handling facilities.

He pointed out that that various development projects were taking placing on the key commercial ports and that would expand the container handling facilities throughout the South African Ports. He announced that the Ngqura project in Port Elizabeth was developing at a heightened pace and it was envisaged in the long term that about 32 berths next to the IDZ (Industrial Development Zone) would be created.

Commenting on the provisions of the proposed NPA Bill, Mr Gama said that the NPA supported the objectives of the Bill as it would promote efficiency and performance in the management and operation of Ports. The NPA Bill seeks to transfer ports, land and other rights and obligations and corporatise NPA into an independent public enterprise under the Transnet conglomerate.

Discussion
The Chairperson asked if the transformation of the NPA into an independent public enterprise would not impact negatively to Transnet.

Mr Gama (CEO) pointed that the incorporation of the NPA into an independent public enterprise would not impact badly on Transnet as the transfer of the NPA as a going concern would be carried out through a legislative framework.

Ms Hloni asked if the Port users, who have functions and activities that were not related to port business, were going to be affected by the restructuring plan.

A Member (ANC) asked for clarity with regards to the life long contracts used by some of the Port users in the key commercial ports.

Mr Gama's response was that it was very difficult for them to remove port users who had functions and activities not related to the port business, as they would have to pay some form compensation to such port users. However the NPA was setting up strategies to address that problem.

The Chairperson pointed out that there was a need for the NPA to furnish the Members of the Committee with clear information with regard to the companies that refused to conform to the new transformation laws.

Mr Kompela asked if the NPA was comfortable with the idea of an interim regulator envisaged under the NPA Bill.

Mr Gama pointed out that there had been wide consultation through various consultative forums with all the stakeholders on port systems and means of rooting out the problem of life long contracts by port users who did not have port related activities.

With regards to the interim regulator, Mr Gama said that NPA was happy with the arrangement of a de facto regulator within the scope of the NPA Bill.

The meeting was adjourned.