The ports industry is in a state of radical change and uncertainty, which requires flexible and adaptable port planning and design. This is according to Phyllis Difeto, Transnet National Ports Authority’s (TNPA) Chief Operations Officer, who delivered the welcome address at the African Ports Evolution 2015 conference at the Durban ICC.
“The impact of the global economic downturn
is a daily reminder to ports of the need to change ‘business as usual’,” she
said. “Innovative techniques are required to adapt to the pressures of
integrating the global supply chain, the need for greater port expansion and
the immediate requirement to preserve natural resources,” she stated.
Difeto outlined the South African port
authority’s strategic direction and key projects from 2015 to 2022. Transnet’s Market
Demand Strategy – which aims to enable the effective, efficient and economic
functioning of an integrated port system to promote economic growth – is in its
third year of implementation. Transnet had invested R92,8bn to date, of which
port investments had amounted to R5,78bn. TNPA’s investment in the South
African port system over the next 10 years would be R56bn, of which R320m will
be spent in the 2015/16 financial year.
The South African government’s focus on
the Oceans Economy under its Operation Phakisa initiative will be a major
driver to invest in the port system. A total of around R2bn will be spent over
the next five years to refurbish existing repair facilities, while they will
invest an estimated R13 to 15bn to create new repair facilities at the South
African ports.. “We are addressing current challenges in the Port of Durban
where depth restrictions demand an urgent programme of dredging and berth deepening.
In Richards Bay we will create additional container handling capacity through
the short-term installation of mobile cranes and a medium-term expansion for
the port to handle up to 100 000 TEUs of containerised cargo” added Difeto.
Major
projects
TNPA’s anticipated major port
infrastructure projects between 2015/16 and 2021/22 would include:
“TNPA is on a journey to create a port system with the infrastructure and capacity to promote economic growth and contribute to job creation,” said Difeto. “We have made solid progress. We have digitised seven of our eight ports through our Integrated Port Management System (IPMS), with the eight due to go live later this month. We are monitoring port efficiencies and have implemented performance operating standards for all operations – at the terminal, marine, haulier/road and rail interfaces. We are in the process of establishing Joint Operations Centres (JOC) across the port system.
“Within the parameters of our economic regulatory environment we are striving to improve the sustainability of the port system. We are exploring ways to reintegrate our ports with their cities and communities. Transformation of the port system is another priority and all new port projects, contracts and leases are subject to strict transformation criteria. We are developing our suppliers and trying to ensure that the ports provide opportunities to local suppliers and the previously disadvantaged,” she added.
TNPA’s port framework plans are reviewed annually and adjusted to suit the economic, policy, trade and technology environment. The port plans allowed TNPA to manage land use and optimise its investments. TNPA is landlord of eight commercial ports around the South African coastline. Transnet’s integrated system of regional ports and rail corridors aimed to complement rather than compete with each other, she concluded.
Original article appeared in Export & Import South
Africa’s January 2016 issue. Visit www.exportsa.co.za