Another strategy revision for Island View Precinct
New strategy for Island View Precinct will revisit transformation of liquid bulk sector
SOUTH AFRICA: Transnet National Ports Authority’s (TNPA) original strategy for the Island View Precinct (IVP) in the Port of Durban which was released in 2018, concluded that the goal of transformation in the port space could be achieved by appointing new black-owned operators within the precinct.
Six years later, TNPA has appointed Zutari as the Transaction Advisor to validate the Island View Precinct Strategy and implementation plan with the stated aim of transforming the liquid bulk sector in South Africa while ensuring security of supply.
TNPA began engaging with stakeholders on the planned strategy in 2018, when the precinct was occupied by 15 tenants, most of whom were on a month-to-month lease arrangement.
This strategy included a 24 month implementation plan that began in April 2018 and was meant to culminate in the finalisation and occupancy of new terminal operators by March 2020. It is, therefore, difficult to consider that the advisors will be able to “validate” the proposed implementation.
The dominance of oil majors in the facility is seen as a major deterrent to transformation and the original IVP strategy proposed that the current operators should form joint ventures to allow new entrants into the space.
In addition, the original strategy wanted to address the fact that historically, the IVP footprint had been occupied by cargo owners that are also terminal operators. The 2018 strategy called for the separation of cargo owners and terminal operators and for the common user principle access to berths.
According a statement issued by TNPA this week, which has largely been printed verbatim in the media without much critical input or reflection on the long delay in implementation, Zutari will undertake a comprehensive revision to ensure the new strategy “remains relevant in today’s evolving landscape.”
The statement describes Zutari’s appointment as a “significant milestone” in moving towards achieving goals of transformation, but fails to acknowledge how a new strategy will be substantively different from the one produced previously, or why the ambitions of the 2018 strategy were not achieved.
Assuring a commitment to safeguard supply chain integrity, especially in this major petrochemical hub, Mpumi Dweba-Kwetana, Acting TNPA Managing Executive for the Eastern Region, is quoted as saying that the strategy aims to “accelerate transformation, ensure a reliable supply of liquid bulk commodities, and increase throughput efficiency”.
TNPA has also committed to ensuring security of supply, improved terminal operational efficiencies, operational continuity, risk management and job preservation with the precinct supporting nearly 2,000 direct and indirect jobs as of 2022.
PHOTO: Aerial photograph of the Island View Precinct (Source: Island View Precinct Strategy, 2018)
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