March 24, 2004

By Samantha Enslin

Durban - The concessioning of the Durban container terminal to private operators is still on track but the need to broaden the terms of reference for the government's advisers is delaying the process.

"Concessioning is still firmly on the government's agenda. We need to restructure ports to be more efficient, eliminate congestion and make sure ports contribute to economic growth and development," Lucky Montana, chief director in the ministry of public works, said yesterday.

The concessioning of the terminal has been on the cards for almost two years but tough negotiations with labour and the development of a framework for the concession have taken longer than expected.

The department of public enterprises was due to appoint transaction advisers for the concessioning by the end of this month.

But this has been delayed after the minister's subcommittee on the restructuring of state-owned enterprises wanted the terms of reference for the government advisers to be broadened. 

This was in order to include regulatory issues and the possible concessioning of other terminals at local ports.

The subcommittee considered the terms of reference too narrowly as they were confined to the Durban container terminal, Montana said.

The reworked terms of reference would be submitted to the director-general of public enterprises by the end of the month and then to the subcommittee.

However, labour said no agreement on concessioning had been reached and, therefore, the government should not be proceeding with the appointment of government advisers.

"As far as we are concerned there is no agreement on concessioning," said Jane Barrett, policy researcher for the SA Transport and Allied Workers' Union.