Cabinet to investigate an equity partner for TNPA
Discussions continue on how to separate TNPA from Transnet
SOUTH AFRICA: In a press briefing following the latest Cabinet meeting, Minister in The Presidency Khumbudzo Ntshavheni revealed that the potential feasibility of securing a minority equity partner for the Transnet National Ports Authority (TNPA) would be investigated.
The Minister was addressing the ongoing process to separate TNPA from the Transnet Group as mandated by the National Ports Act. According to her comments, Cabinet has provided the approval for an investigation into whether one of the State-owned development finance institutions could feasibly become an equity partner in the corporatised Authority.
No further details were provided as to the timelines associated with the study or when the separation would be completed. She did, however, contend that several principles would govern the process. Fair compensation for Transnet is seen as one of these and relies on an independently assessed valuation of TNPA. In addition, in pursuit of long-term sustainability, the separate demands an equitable allocation of liabilities to both the Group and the Authority.
The Minister concluded that the process would also be guided by the need to protect employees as well as preserve the strategic state ownership and control of national ports infrastructure; and improve investment capability and infrastructure development.
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