November 25, 2003

By Samantha Enslin

Durban - The government would call for bids from the private sector to operate the Durban container terminal before next year's elections, Jeff Radebe, the minister of public enterprises, said at the weekend.

Radebe was speaking at the launch of the KwaZulu-Natal (KZN) Black Business Portfolio and the KZN uMyezane Awards, which recognise progress in empowerment in the province.

Speculation has mounted that the government might delay calling for bids for the concession to run the container terminal until after the elections, so as not to alienate trade unions, which have argued against concessioning.

Labour says it has a broad agreement with the government on the private sector playing a role in the ports but that no agreement has been reached on concessioning the terminal.

Radebe, however, said the government had an agreement with labour to go ahead with port restructuring. The aim of the programme was to improve efficiency, increase competition and access private sector funds for the development of infrastructure.

Radebe said:

"The government's restructuring programme has enabled us to contribute to the sound status of South Africa's public finances."

"In the past five years a total of R24 billion has accrued to the national revenue fund as a result of our transactions.

"This is set to increase to well above R15 billion in the next couple of years, as we finalise transactions in telecommunications, forestry and the disposal of some non core assets within Transnet."  

Eskom's restructuring promised "major capital inflow" from foreign investment but the government was proceeding carefully to tighten up and refine the regulatory framework.

"We are taking a more careful look at regulation in the energy sector due to ... failures in the sector around the world," said Radebe.

Radebe said government policy was to pursue options such as concessioning and management contracts, public-private partnerships, equity stake sales and the outright disposal of assets along with driving state-owned enterprises to maximise efficiencies and effectiveness.

As part of the recently announced, multibillion-rand expanded public works programmes, state-owned enterprises are also expected to play a more direct role in job creation.

This could include expanded electrification or ports restructuring, which could result in the creation of well over 2 800 jobs.

The winners of the uMyezane awards were Afrox for corporate social investment; painting and decorating business Smith & Winfield for worker empowerment programmes; Enaleni Pharmaceuticals for job creation; and Mondi for business growth.

Interface Group won in the black-owned and managed business category. Lydia Mzoneli won the black businesswoman award.

Don Mkhwananzi, the chairman of the Durban Investment Promotion Agency, won the Black Business Portfolio Award.