TNPA corporatisation progress inches forward

Transnet provides progress statement

SOUTH AFRICA: According to a statement issued yesterday by Transnet, work is underway to complete the Memorandum of Incorporation and the Registration of Transnet National Ports Authority (TNPA), but no real timelines were provided for the completion of the corporatisation of the authority which is mandated by the National Ports Act.

Part of the process includes the disposal of non-core assets and, although the Transnet Board of Directors has approved the disposal plan, Transnet is currently still finalising the full list of assets with the aim of completing this within the current financial year.

The process will culminate in the establishment of the National Ports Authority as a wholly owned subsidiary of Transnet and aims to enhance TNPA’s regulatory oversight on terminal operators across its port network.

The corporatisation will establish TNPA as a financially autonomous entity capable of generating its own revenue, attracting investments to improve the efficiency and positioning of the country’s ports to enhance competitive maritime trade and create appropriate partnerships.

It will also, through its independence, enhance terminal licence oversight and align with international standards and regulations governing port authorities and ensure compliance with South African maritime and port regulations.

“These initiatives are a demonstration of Transnet’s commitment to the structural reforms in response to the changes in policy and regulations. In some cases, these changes entail entry of third parties in the rail and port networks, which is a necessary step to stimulate competition and address long-standing challenges such as underinvestment,” said Transnet Group Chief Executive, Michelle Phillips.