SA Port Operations (Sapo), which made a positive contribution to Transnet's results, has shown what an attractive investment some of its business units might be for the private sector.

Despite capacity constraints, an increase in imports and exports helped Sapo to boost turnover to R2.3 billion in the year to March from R1.8 billion in the previous year.

Net operating profit was R300 million before an asset write-down provision of R419 million due to an accounting change. As a result, Sapo reported a loss of R86 million compared with a profit of R67 million the year before.

The government plans to ask the private sector to bid for the running of several port terminals, beginning with the Durban container terminal.

Sapo said good revenues in the container, bulk and car sectors and effective containment and management of operating costs boosted profitability.

Container throughput grew 9.8 percent to 1.4 million twenty foot equivalent units.

Pressure on the Durban container terminal stems largely from insufficient infrastructure and container handling facilities. These are being upgraded to meet growth in demand of between 6 percent and 7 percent a year. The upgrade includes 60 new straddle carriers costing R300 million.

The Cape Town container terminal has moved from a loss to a profit in four years. Volumes grew 23 percent in 2001 and 11 percent last year.

At the car terminals in Durban and East London, volumes increased only 2.8 percent due to a slowdown in demand for luxury vehicles.

But the Durban car terminal, which handled 116 000 vehicle imports and exports last year, is gearing up to meet future demand. A R100 million three-tier parking garage and an overhead bridge linking the terminal with the quayside are under construction.

The increased capacity of the terminal is expected to be fully used. Volumes are projected to reach 143 000 vehicles by 2003/04 and 175 000 in 2006/07.