The study examines, with the intention of establishing the strategic significance of the concession granting of the Durban Container Terminal at the Port of Durban. The international trade requirements of the host country are assessed under the Port Reform Toolkit. The year 1994 was very important in the history of South Africa with the right start of the transformation process.
The port reform process is part of the larger South African government's Transport Strategy 2020 (Internet 11). This study on port reform through concession will be presented to the managing director of the Port Authority. As it appears from the bill on ports, the Danish Ports Authority will be the final holder of the concession.
The aim is to provide assistance in achieving the port reform process in a responsible manner. The question therefore arises, "Will the Durban Container Terminal Concession provide a solution to improve service delivery to stakeholders at the Port of Durban?".
Objectives of the study
Research methodology
SAPO
The latest figures for the financial year ending in 2004 showed that SAPO was one of the most important profit centers. SAPO is very lucky because it knows the terminal and transport logistics in mobile containers very well (Internet 1). Of the cargo handled, 75% of the cargo moves by road, 40% within the Durban area and 30% to destinations outside Durban.
At the time of Union (1910), the ports and railways of South Africa were placed under the control of the national government, fearing that the maritime provinces would use their ports to exploit the inland provinces. The then SAR&H administration was specifically mandated by legislation to promote the development of the interior of the country and ensure that each of the existing ports received a fair share of imports and exports. Special rates were also introduced to encourage the use of the ports of East London and the Port.
There is a shortage of locomotives supplied by Spoornet, causing train delays in the marshalling yards. To the extent that construction costs for basic infrastructure (e.g. expansion and deepening of access channels) are to be incurred, which is the responsibility of the port board, the possibilities for this depend on whether Portnet's obligation to remedy Transnet's debt problem is resolved. The restructuring of the fees based on costs is therefore essential if private investment and improved operational efficiency are sought (Internet 16).
NEPAD agrees to resist protectionist pressures and has underlined its commitment to working with other developing countries to ensure the successful conclusion of the Doha Development Agenda by 1 January 2005. It is clear that NEPAD members intend to respect WTO guidelines. In support of this ideology, a privatization strategy would make sense as a means of achieving WTO goals.
There is a need for greater efficiency and better services In developing countries there has been a growth in infrastructure as a result of these partnerships from US$16.6 billion in 1990 to over US$95 billion by 1998. Over the 1990-98 period Africa accounted for about US$14 billion of the total investment of US$496 billion made in PPP projects in developing countries, compared to US$237 billion for Latin America and the Caribbean. The concession of the terminal has been on the cards for nearly two years, but tough negotiations with labor and the development of a framework for the concessionaire have taken longer than expected.
COSATU
A private company runs the road on behalf of the government, but the government still owns the road. COSATU still doubts whether there is a single government policy and wants the government to provide a better explanation of the problem. The way we trade has changed from what we as South Africans are used to, and so a review of the latest trends and trade requirements affecting stakeholders is necessary.
International Trade and associated requirements form the basis for the concession rationale and the concession agreement between the state and the private tenderer. This can benefit the country in the way it does international trade as trade is more efficient through the implementation of newer technologies. One of the advantages of such a forum is to address issues of empty promises in the event that a large trading bloc such as the European Union (EU) or the North American Free Trade Agreement (NAFTA) engages small developing countries by making many promises of foreign direct investment (FOI) with little forthcoming.
Many of the standards that are developing worldwide need to be considered by smaller countries such as South Africa so that they can remain competitive by offering the most efficient service. Development of strategy by national government in accordance with the forces will provide for the development of port business as a whole, with associated positive influences in the economy of the country. The National Commercial Port Policy clearly states that the National Port Authority will be responsible for the management of the national commercial port system.
In terms of port policy, the NPA is responsible for landownership, control and other functions within South Africa's ports (Internet 12). It coordinates port marketing and promotional activities: and maintains the sustainability of the ports and their environment. The future passage by Parliament of the NPA Ports Bill will continue to present new management challenges for the NPA, including responsibilities never exercised by the NPA.
The initiation of the port reform process through the concession of the Durban Container Terminal will put additional pressure on NPA, who will be expected to manage and execute this process, after which the remaining terminals will be allocated in a similar manner ( Marketing Manager NPA .Mr Sipho Nzuza: 2004). The port has experienced extreme security demands since September 11 and trading partners are pushing for compliance. The government instead of global best practices adopted strict environmental compliance requirements and these best practices were also adopted as a strategy of the port.
SWOT ANALYSIS
PORTCON
One of the most important measurement tools is the development and implementation of a terminal performance evaluation model. There are still incompatibilities within Transnet and risk to port development. To ensure the success of the container terminal at Ngqura Port (which will initially be concessioned through a BOT (Build Operate and Transfer) agreement), it will be important to ensure a seamless supply chain, where investment from lines of transport will be considered necessary.
Assimilation of the information once evaluated as a strategy will pose problems that need to be addressed in the concession controversy. The port's challenges are clear and the key is the authorities' intention to become a world-class port. The vision of the National Ports Authority of South Africa (NPA) is to be a clearly competitive port, comparable to other similar terminals in the world.
NPA will also be responsible for drafting the concession agreement which includes the performance clauses. The decision on the designation of the preferred bidder will be subject to the qualifications of the tender. NPA will need to choose a good partner that shares the vision of the NPA and the South African government in relation to the management of ports.
34;Dominant" is chosen because of the monopoly that NPA and SAPO currently have in port management. The South African government commissioned the development of the Coega Industrial Development Zone to promote economic growth in the Eastern Cape province. Such an arrangement will traditional hinterland distribution network as well as distribution in the hinterlands.
This analysis shows the extent to which the proposed strategy of concessioning the Durban Container Terminal matches favorable performance parameters (Johnson and Scholes, 1997). No information is available on the financial modeling of the strategy as it is confidential for the purposes of the investigation. Given the advanced state of the process, it is considered safe to assume economic viability.
Feasibility
Most of the parastatals in South Africa have the same evolution with similar experiences that are heavily influenced by the country's political situation in the business cycle. When evaluating the concession strategy in terms of suitability, acceptability and feasibility, everyone gets a thumbs up. In conclusion, these same concession variables are prioritized based on the outcome of the variable when considered against the concessions in South Africa.
When choosing the strategies to achieve port reform, the choice of the strategy will be enforced by the government. NPA and SAPO will be stakeholders in the concession process and provide significant input in the development of the concession agreement. Investment in tourism and other means that South Africa offers to the rest of the world.
By establishing what each of the stakeholders' perspectives are, a picture of the way forward begins to form. Governments representing the UK are the World Bank's primary funders and therefore wield enormous influence. The national government is the only stakeholder responsible for the interests of the public sector in this regard (Internet 17).
South Africa, like many developing countries, also offers retrenchment packages and multiple post-retrenchment skills and empowerment. All stakeholder efforts can be presented for informational purposes and the strategy once commanded should work. 34; Will the concession of the Durban Container Terminal provide a solution for improving service delivery to stakeholders at the Port of Durban?”.
Therefore, the feasibility of the reform process may be seriously flawed if active steps are taken further. In first world countries, the regulatory requirements are not very different from those of the market. They essentially start by assuming the efficiency of markets and skills in the private sector.
