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<\/a><\/p>\nThe Transnet move is the latest sign that South Africa\u2019s unprofitable state-owned entities are becoming more open to private investment and participation — with the blessing of the government.<\/p>\n
Eskom Holdings SOC Ltd, the state power giant, has welcomed increased generation by independent producers, while a majority stake in bankrupt South African Airways was offloaded to outside entities in June.<\/p>\n
All three firms were beset by mismanagement and corruption under the presidency of Jacob Zuma that ended in 2018, and have been scrutinized as part of an ongoing inquiry into state graft over that nine-year period.<\/p>\n
The plan is \u201cless about politics and more about where Transnet finds itself today,\u201d Derby said. The ruling African National Congress has \u201calways been a believer that the private and public sector play together.\u201d<\/p>\n
Eroding competitiveness<\/strong><\/p>\n South Africa\u2019s government has indicated the need for change at its ports, outlining the required reforms in a draft National Infrastructure Plan 2050 published last week. A lack of efficiency and high cost of logistics \u201cis eroding the competitiveness\u201d of the economy, according to the document.<\/p>\n \u201cMany of these problems have been attributed to the monopolistic nature of port operations.\u201d<\/p>\n Derby didn\u2019t comment on potential buyers of stakes. One international ports firm with an Africa presence is DP World, which operates facilities in Senegal, Angola and Mozambique. The Dubai-based company last month agreed to acquire South African transportation firm Imperial Logistics Ltd for $890 million.<\/p>\n The Ngqura Container Terminal was designed as a state-of-the-art trans-shipment hub to handle traffic from Asia, South America and West Africa. After more than a decade the facility still hasn\u2019t reached its full potential, said Velile Dube, CEO of Transnet Port Terminals.<\/p>\n \u201cWe believe there\u2019s a huge potential for taking that facility and integrating it into the global network of terminals,\u201d he said. \u201cTo do that you need to position it together with a partner.\u201d<\/p>\n
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