South Africa has shelved plans to invite the private sector to manage the country's busy Durban container terminal in favour of a strategy to improve efficiency and reduce business costs, a top official said on Thursday.
The government announced five years ago that it would invite private companies to manage the container terminal at Africa's busiest and congested port, but little progress was made.
"As far as Durban is concerned, we are operating Durban..." South African Port Operations (SAPO) Chief Executive Officer Tau Morwe told reporters. Inviting private companies to run it "is not on the table", he said.
The government has watered down all plans to sell off state-owned companies and has shifted focus towards improving efficiency through planned hefty capital expenditure.
State-owned transport utility Transnet, which owns SAPO, plans to spend more than 40 billion rand ($6.14 billion) over the next 5 years to upgrade its ports, rail and pipeline assets.
Morwe said the government may still consider bringing in a private partner, but management would remain a state responsibility.
"If we run it and do a poor job I think the government will look at someone else to do it," he said, adding SAPO had already achieved major gains in easing congestion.
"Congestion was so bad ... but working with the industry, with the shipping lines and the cargo loaders we have been able to see a dramatic increase in efficiency improvements in Durban."
Public Enterprises Minister Alec Erwin said in April Transnet would spend 2.9 billion rand to upgrade the Durban harbour, which has suffered serious delays due to a lack of maintenance and investment.
It would also spend about 1.4 billion rand to upgrade the Cape Town port - subject to environmental considerations - and will spend 2.6 billion rand to build a container terminal at the new Coega port.
Morwe said SAPO initially intended to build and operate a 500,000 TEU (20 foot equivalent unit), two-berth terminal at Coega, although this may now double in size to accommodate anticipated traffic.
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