Question NW1817 to the Minister of Public Enterprises

Reply:

(1)(a) There is no plan to sell assets to private companies.

(1)(b) There is no plan to privatise ports under the control of Transnet. The position in this regard is to crowd in private capital to co-invest in the ports equipment, technologies, skills and operations with the aim of improving efficiencies of the country’s port systems which is critical for the country’s economic competitiveness ability to grow the export market and support the growth of local businesses.

Transnet’ balance sheet alone is not sufficient to support the investment resources required to upgrade the ports to worldclass standards. The private sector participation model leaves the ownership of the port and resultant improvements in the balance sheet of Transnet, enables the participation of the private sector in supply chain efficiencies as port users but still leaves the ownership of the entity with the State while simultaneously reducing the financial reliance on the national fiscus.

2. No. The invitation of the President was not informed by any plan to privatise the Port of Durban or any other port under Transnet. The visit by the President was to evaluate progress made from his visit to the Port of Durban in October 2019. During that visit, many local businesses and port users raised specific concerns about the performance of the Port of Durban. Shipping companies in particular, expressed concern about the low productivity levels in the port which included amongst others, truck congestion and waiting times, ship berthing delays and poor reliability of critical port equipment. The visit in April 2021 was aimed at affording the President a firsthand check on the progress against the commitments that were made in the 2019 visit; and for Transnet to apprise him about further plans to reposition the port. This was to reinforce the commitment that the President had made to local business regarding the improvement of the efficiencies at South African Ports.