South African President Cyril Ramaphosa announced on Tuesday the establishment of the Transnet National Ports Authority, an independent subsidiary of the state-owned transport giant Transnet
JOHANNESBURG (Pakistan Point News / Sputnik - 22nd June, 2021) South African President Cyril Ramaphosa announced on Tuesday the establishment of the Transnet National Ports Authority, an independent subsidiary of the state-owned transport giant Transnet.
Transnet was founded in 1990 after the restructuring of several business units, including the country's seaport operator, principal operator of fuel pipelines, railway operator and freight services. The majority of the company's stock is owned by the Department of Public Enterprises under the South African government.
"This will mean the establishment of an independent National Ports Authority as a wholly-owned subsidiary of Transnet, with its own board appointed by the minister of public enterprises," Ramaphosa said, noting that one of the main challenges in managing the country's ports is to separate the infrastructure owner from the terminal operator.
Under the reform, the Transnet National Ports Authority will be in charge of the ports' infrastructure, while Transnet Port Terminals will continue acting as the terminal operator.
According to the South African leader, the measure will allow the modernization of network industries, increasing their efficiency, reducing costs and making the exports more competitive.
The minister of public enterprises is expected to appoint an interim board by June 30 to oversee the establishment of the new subsidiary.
