Parliamentary Presentation Cape Town

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Parliamentary PresentationCape Town

• 28th March 2001

Siyabonga Gama Port Authority Division
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Agenda

• Introduction
• Divisionalisation Background
• PAD Strategic Objectives
• Challenges
• Benefits

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South Africas Economic Potential
NP
GP
NW
MP
OFS
Richards Bay
KZN
NC
Durban
EC
East London
Saldanha Bay
COEGA
WC
Port Elizabeth
Mossel Bay
Cape Town
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What is Divisionalisation?
PORTNET
PAD
POD
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Structure and Principles
TRANSNET

• Phased, Top Down Implementation
• Transformation Skills a Key Competence for Senior
  Managers
• Opportunity to Accelerate Equity Objectives
• Satisfied Clients

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Strategic Charter
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Rationale for Divisionalisation

• White paper on transport policy
• Port global trends
• IMCC decision to implement
• Provides management focus
• Segmentation of roles and functions
• Operations
• Cargo Handling
• Authority
• Landlord Marine
• Infrastructure development

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Divisionalisation Phases
Divisionalisation Concept Framework
Development Communication
Project Planning Mobilization
High Level Divisionalisation Design
Implementation Role
Allocation
Further Design
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Progress to Date

• Tariff Reform Restructuring of Pricing Policy
• Viability Modeling
• Assets Allocation
• Process/systems enhancement and Re-
  engineering
• Service Level Agreements
• Contracts review and allocation
• Human Resources allocation

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Vision
To be a transformed, self-sufficient Port
Authority that facilitates and enables
competitiveness in a world class ports system
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Mission
To facilitate economic growth in South Africa by
providing and sustaining port systems that are
amongst the best in the world.
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PAD Strategic Objectives

• Establish business planning performance
  management.
• Enable a fair and facilitative regulatory
  environment.
• Ensure SA ports and infrastructure are in a
  proper state to enable effective operations.

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PAD Strategic Objectives

• To become a strategic role player, as a
  facilitator of trade, in governments economic
  strategies.
• To confirm, validate, align and institute
  governance relationships with POD private
  terminals.
• Develop managerial operational competency in
  line with equity objectives.

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Corporate Governance
PAD
Private Terminals
POD
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Challenges

• Creating a transformational organisation
• Pricing Strategy and ROI
• Leveling the playing fields
• Enabling port operators
• Global and National strategic alignment
• Public Enterprise role
• Performance culture
• heartbeat of the new organisation

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Challenges

• Standardised leases across all ports
• Standard operating/concession agreements
  /operating licenses
• Broadening the pond
• IT conduit to better service
• African Renaissance (Portcon)
• Providing the right capacity at the right time
• Creative financing of projects

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Tariff Adjustment 1 April 2001

• No structural changes on 1 April 2001
• Port Authority
• Reduce Import wharfage from 1,78 to 1,70
• Reduce Export wharfage from 0,89 to 0,85
• Adjusted Maximum and Minimum cargo value for
  calculating wharfage (Minimum from R 204 to R 214
  and Maximum from R9 000 to R9 423)
• Marine adjusted by 10 and Shiprepair by 9

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Tariff Adjustment (continued)

• No adjustment to coastal and transhipment
  wharfage
• Port Operations
• Adjustments linked to Inflation
• Minimum of 6

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Durban SBM

• Moved from an ad valorem based wharfage to a unit
  based wharfage
• Wharfage per ton (1000 litres) based on a sliding
  scale in line with wharfage reduction principle
• Protracted negotiations between PAD and SAPREF
  resulted in a new agreement with effect from 1
  October 2000

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Ports Policy - Objectives

• To establish a national ports authority
• To establish an appropriate ports regulatory
  framework
• To substantially increase the private sector
  participation in port operations and services
• To establish the Minister of Transport as the
  competent minister in respect of commercial ports
  policy and legislation

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Content Expectations

• The South African Ports System
• Scope includes future commercial ports and
  off-shore cargo handling facilities
• National Port Authority of South Africa
• Functions and corporate characteristics
• Composition of its Board of Directors
• Port Regulator
• Communication and consultation
• Local port consultative committees
• National development strategy for ports
• Advocates port and city co-operation through
  planning structures

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Thank you.