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Maintenance and Operation of Ports in South Africa 2016

  • February 2016
  • 35 pages
  • Who Owns Whom
Report ID: 3752059

Summary

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Maintenance and Operation of Ports: This report focuses on the maintenance of ports and harbours in South Africa, a sector that is dominated by two divisions of State-Owned Corporation (SOC) Transnet. As between 95 % and 98% of South Africa’s international trade is carried by sea, and with national demand for all cargo travelling through the ports system reaching approximately 255 million tons in 2015, the sector is of vital importance to the country.


Operational Challenges: Over the years there has been a lack of investment into port infrastructure which has resulted in “serious operational deficiencies.” Benchmarking studies have also found that efficiency levels and the standard of services provided by the local ports authority are expensive and fall below international standards.


Investment into Infrastructure: Investment into the country’s transport sectors forms an important part of Government’s National Development Plan (NDP) which aims to promote economic growth and boost job creation. During 2014/15 Transnet through its Market Demand Strategy (MDS) invested R5.78bn in port infrastructure and over the next ten years Transnet National Ports Authority (TNPA) through Operation Phakisa expects investment of R56bn. With such large investments, stakeholders believe South African ports will be able to provide repair, maintenance and support services to the African Oil & Gas industry and will become a transhipment hub for sub-Saharan Africa, acting as a gateway into the rest of Africa.


Report Coverage:
The Maintenance and Operation of Ports describes the South African ports sector, outlines current and future infrastructure projects and discusses factors influencing the success of this sub-sector of the transport industry. The report profiles Transnet and its two divisions, TNPA and Transnet Port Terminals (TPT) which reported turnover of R9.718bn and R9.712bn respectively during 2015 and between them employed 11,250 people.

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