President Cyril Ramaphosa on 22 June 2021 announced the establishment of the National Ports Authority as an independent, wholly-owned subsidiary of Transnet in terms of the National Ports Act 12 of 2005. In attendance were the Minister of Public Enterprises Pravin Gordhan and Minister of Transport Fikile Mbalula.
This announcement represents a significant reform of the transport sector that will enable the modernisation and transformation of South Africa’s ports system.
The establishment of a new subsidiary will fulfil the intentions of the Act to create an independent ports authority. It will separate the roles of the Transnet National Ports Authority, as the owner of ports infrastructure, and Transnet Port Terminals, as the terminal operator, which are currently operating divisions of Transnet.
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This reform will enable the reinvestment of port revenues in port infrastructure and will ensure that terminal operators are treated fairly and equally, enabling greater private sector participation in terminal operations.
The state will remain the sole owner of all port infrastructures through the National Ports Authority, as South Africa’s ports are strategic national assets that belong to the South African people.
This measure is being implemented as part of government’s broader strategy to enhance the performance of the ports and invest in the expansion and upgrading of port infrastructure, and will enable this strategy.