Cabinet says local DFI could take equity in stand-alone TNPA
Cabinet has mandated Transnet National Ports Authority (TNPA) to investigate the feasibility of one of the country’s development finance institutions (DFIs) becoming a minority equity partner, after endorsing its full separation from the Transnet group.
Minister in The Presidency Khumbudzo Ntshavheni indicated that the option of including a DFI as a shareholder was discussed by Cabinet at its latest meeting, which included an update on the implementation of reforms aimed at improving the competitiveness of South Africa's freight and logistics system.
Cabinet, she said, supported the separation of TNPA so that it could operate as a stand-alone company owned directly by the State.
Cabinet also decided that TNPA’s separation should be implemented using the following principles:
- Fair compensation for Transnet based on an independently assessed valuation of TNPA;
- Ensuring long-term financial sustainability and an equitable allocation of liabilities to both the Transnet group and TNPA;
- The protection of employees and customers;
- The preservation of strategic State ownership and control of national ports infrastructure; and
- Improving investment capability and infrastructure development.
The vertical separation and corporatisation of TNPA, which develops and maintains the infrastructure at the country’s commercial ports while providing key marine services, has been delayed for a number of years.
Nevertheless, it has also been flagged as important for levelling the playing field for private and public terminal operators and for ensuring that its revenues are reinvested in the ports rather than used to cross-subsidise other Transnet entities.
No timeframe for the separation was provided in the Cabinet statement, nor was the identity of a possible DFI shareholder. However, the Development Bank of Southern Africa has a public infrastructure mandate.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
SafeQuip is a leading distributor and manufacturer of fire safety solutions, offering a comprehensive range of products designed to meet all...
VISIT SHOWROOM
Complete range of security sealing solutions including security seals bags and labels.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
