Date: 16/09/2003
Source: Ministry of Transport
Title: Omar: National Ports Authority Bill, NA
SPEECH BY THE MINISTER OF TRANSPORT, DR DULLAH OMAR, INTRODUCING THE NATIONAL PORTS AUTHORITY BILL AT ITS 2nd READING IN THE NATIONAL ASSEMBLY, 16 September 2003
Madame Speaker;
Honourable Members,
I am delighted to table to the Assembly, the National Ports Authority Bill today. I wish to first of all take this opportunity to commend the Chairperson, Comrade Jeremy Cronin, and members of the Portfolio Committee on Transport for their thorough work and discipline displayed during this challenging period. I understand that there is consensus amongst the various parties on the object and structure of this Bill. I thank all parties for their support. Let me take the opportunity as well to thank the various stakeholders and interest groups who made submissions and engaged with government on the content of the Bill. These engagements are greatly valued because without them, the quality of the Bill we are presenting to the House will not have been what it is today.
Madam Speaker, this Bill has its origin in the White Paper on National Commercial Ports Policy adopted by Cabinet in March 2002. Commercial ports play a crucial role in South Africa's transport, logistics and its socio-economic development. It is interesting to note that 90 per cent of world trade is sea borne, and approximately 98 per cent of South Africa's exports are conveyed by sea. These figures illustrate the point that the life of our economy depends largely on ports.
Ports play a vital role in all countries; but many people do not realise just how vital this role is for the health of the economy. A country's port is at the same time a barometer of its integration into the global marketplace and a critical support system for its international trade.
The aim of the White Paper on Commercial Ports Policy therefore was to ensure affordable, internationally competitive, efficient and safe port services based on the application of commercial rules in a transparent and competitive environment applied consistently across the transport system.
The White Paper identified that an efficient port required not only adequate infrastructure, superstructure and equipment, but also good communications, information, technology systems, and a dedicated and skilled management team with a motivated and trained workforce.
The White Paper proposed that in order to ensure that our ports continued to contribute to our international competitiveness, the separation of the port authority and port operations components will give additional impetus to on-going efforts to upgrade facilities and equipment. The White Paper proposed the creation of a sector regulator for ports.
The ports reform process therefore is aimed at improving the performance of the ports system, raise productivity, promote black economic empowerment and mobilise private sector investment in the South African port system.
When Cabinet adopted the White Paper on National Commercial Ports Policy, this Parliament was set a critical assignment.
It is the assignment of providing a framework of law that can make the policy pronouncements into reality for our country. This Bill before the House is that framework of law.
The Bill before this House heralds a new dawn for port regulation, management and operations in South Africa. It will place us in a position to move speedily with implementation of the ports reform process. The objects of the Bill in a nutshell are to promote transparency, improve efficiency and performance in the management and operation of ports by establishing appropriate institutional arrangements to support the governance of ports and create an environment to facilitate the development of technology, information systems and managerial expertise through private sector involvement and participation; and generally promote the development of an integrated regional production and distribution system in support of government's policies.
The premise of the Bill is port efficiency, regulation and empowerment. This means that by establishing and redefining the functions of the National Ports Authority, we are confirming that, firstly, the Authority has the function to own, manage, control and administer ports to ensure their efficient and economic functioning. Although the Authority will not be involved in operations, the Authority has the overall responsibility as 'an operator of last resort' to do everything reasonably necessary for the effective and economic management, planning and operation of ports. This provision is in line with best international practice to empower the Authority to exercise.
The Bill has carefully been worked out to ensure that the transition from the Authority in its present form, as a division of Transnet is carefully managed whilst at the same time not unnecessarily delaying its ultimate exit from the Transnet stable. It is important to indicate that the bill has been drafted so that throughout all these stages of the development of the Authority, it enjoys the status of the Authority and is fully empowered to perform the function of the Authority as if it were the Authority. It is important for me to state that throughout the entire process of the development of the Authority, workers employed by the Authority are guaranteed their positions.
The Bill before you entrusts the Minister of Public Enterprises with the function to appoint the members of the Board of the Authority and to hold shares of the Authority on behalf of the Government. The Board of the Authority is fully empowered to undertake various functions and among other authorizations, the authority will approve the strategic and business plan, approve port reform measures and most importantly ensure that small and medium-sized enterprises owned by historically disadvantaged groups have an equitable opportunity to participate in the operations of facilities in the ports environment.
The White Paper on National Commercial Ports Policy had identified the need for a ports regulator with the main aim to regulate the Authority:
1. To ensure impartiality and equity in the access to port services; and
2. To rule on any complaint by port users of monopoly pricing on the part of the Authority
3. To monitor the business relationship between the Authority and Transnet
In order to ensure impartiality of the Authority, the Bill establishes an independent ports regulatory body to be known as the Ports Regulator. The main function of the Regulator will be to hear complaints, appeals, ensure equity of access and most importantly, consider tariffs and other charges the Authority will be imposing for the services it will be providing in ports.
Madam Speaker, before appointing any member to the board of the Authority, each member will have to declare whether he or she has any direct or indirect interest in the business of the ports. Members of the board and staff will further not be allowed to engage in any activity that undermines the integrity of the Regulator or make use of or profit from any confidential information obtained in the course of duty. These measures are necessary to ensure the credibility of the institution and its activities.
In order to attract private sector participation, we have created a legislative mandate empowering the Authority with the right to enter into various forms of agreements, including concession contracts in the design, construction, rehabilitation, development, financing, maintenance, provision or operation of port infrastructure or services.
In order to promote the culture of co-regulation, all operators and service providers will be required to be licensed before they can provide a service within the port environment. Transitional provisions have been made protecting and also requiring those persons who are presently providing services in ports and or in offshore cargo handling facilities to reapply for licenses within the stated period of time.
In order to deal with historical imbalances, it is critical to empower the Authority with the authority to initiate restructuring of land use in ports to enable the Authority to decide future operational strategies. It is however of importance that such restructuring must have the aim of correcting a historical imbalance where such has been identified and that there must have been a process of consultation initiated by the Authority.
To promote sustainable development, it is vital to have adequate consultation and discussion the port facilities, development and operations with relevant stakeholders. Because of the influence of the larger ports on their environment and the important transport and economic role they fulfil, there are a number of authorities and organisations that have an interest in, or are affected by ports and their operations. It is in this context that port consultative committees at various levels must be supported as a platform of engagement more particularly on issues affecting port cities.
Madam Speaker, this Bill confirms that ports are important for our country's economic growth. In recent times, the functions of ports have changed from merely being points of entrance or exit, to being industrial and logistics focal points. The main purpose of the National Ports Authority Bill therefore is to ensure that ports in our country comply with modern demands by the provisioning of efficient, safe and affordable port services.
In closing, Madam Speaker, I summarise the specific objectives of the Bill as being to:
1. Provide for the establishment of the National Ports Authority to own, manage, control ports on behalf of the State;
2. Provide for the transfer of ports, land and other rights and obligations from Transnet to the Authority
3. Provide for the establishment of the Ports Regulator
4. Ensure equity in the access to ports facilities in a non-discriminating manner
5. Authorise the Authority to enter into various forms of contracts including concessions
6. Provide for the licensing of port services and facilities
7. Authorise the charging of fees and
8. Amend other laws that have a bearing on the activities of the ports
I would like to once-again thank the Portfolio Committee and its Chairperson for all the work from their side to ensure that the Bill is in the House today. This Bill is indeed an outcome of fruitful but robust debate and input by all interested stakeholders who participated in the process.
By passing this Bill, this House will be creating a framework that is so much needed in the journey of ports sector reform process.
I would like to indicate that through the National Framework Agreement process government and labour are endeavouring to address the concerns and fears of labour. We will as government go out of our way to arrive at an agreement with labour. This NFA process, however, cannot interfere with the passage of this Bill. I repeat that we will as Government go out of our way to address work concerns.
I wish to thank all those who have contributed to this process.
I thank you and remember the economic life of port states is measured by the level of efficiency of its ports.
Issued by the Ministry of Transport, 16 September 2003
Source: Ministry of Transport
Title: Omar: National Ports Authority Bill, NA
SPEECH BY THE MINISTER OF TRANSPORT, DR DULLAH OMAR, INTRODUCING THE NATIONAL PORTS AUTHORITY BILL AT ITS 2nd READING IN THE NATIONAL ASSEMBLY, 16 September 2003
Madame Speaker;
Honourable Members,
I am delighted to table to the Assembly, the National Ports Authority Bill today. I wish to first of all take this opportunity to commend the Chairperson, Comrade Jeremy Cronin, and members of the Portfolio Committee on Transport for their thorough work and discipline displayed during this challenging period. I understand that there is consensus amongst the various parties on the object and structure of this Bill. I thank all parties for their support. Let me take the opportunity as well to thank the various stakeholders and interest groups who made submissions and engaged with government on the content of the Bill. These engagements are greatly valued because without them, the quality of the Bill we are presenting to the House will not have been what it is today.
Madam Speaker, this Bill has its origin in the White Paper on National Commercial Ports Policy adopted by Cabinet in March 2002. Commercial ports play a crucial role in South Africa's transport, logistics and its socio-economic development. It is interesting to note that 90 per cent of world trade is sea borne, and approximately 98 per cent of South Africa's exports are conveyed by sea. These figures illustrate the point that the life of our economy depends largely on ports.
Ports play a vital role in all countries; but many people do not realise just how vital this role is for the health of the economy. A country's port is at the same time a barometer of its integration into the global marketplace and a critical support system for its international trade.
The aim of the White Paper on Commercial Ports Policy therefore was to ensure affordable, internationally competitive, efficient and safe port services based on the application of commercial rules in a transparent and competitive environment applied consistently across the transport system.
The White Paper identified that an efficient port required not only adequate infrastructure, superstructure and equipment, but also good communications, information, technology systems, and a dedicated and skilled management team with a motivated and trained workforce.
The White Paper proposed that in order to ensure that our ports continued to contribute to our international competitiveness, the separation of the port authority and port operations components will give additional impetus to on-going efforts to upgrade facilities and equipment. The White Paper proposed the creation of a sector regulator for ports.
The ports reform process therefore is aimed at improving the performance of the ports system, raise productivity, promote black economic empowerment and mobilise private sector investment in the South African port system.
When Cabinet adopted the White Paper on National Commercial Ports Policy, this Parliament was set a critical assignment.
It is the assignment of providing a framework of law that can make the policy pronouncements into reality for our country. This Bill before the House is that framework of law.
The Bill before this House heralds a new dawn for port regulation, management and operations in South Africa. It will place us in a position to move speedily with implementation of the ports reform process. The objects of the Bill in a nutshell are to promote transparency, improve efficiency and performance in the management and operation of ports by establishing appropriate institutional arrangements to support the governance of ports and create an environment to facilitate the development of technology, information systems and managerial expertise through private sector involvement and participation; and generally promote the development of an integrated regional production and distribution system in support of government's policies.
The premise of the Bill is port efficiency, regulation and empowerment. This means that by establishing and redefining the functions of the National Ports Authority, we are confirming that, firstly, the Authority has the function to own, manage, control and administer ports to ensure their efficient and economic functioning. Although the Authority will not be involved in operations, the Authority has the overall responsibility as 'an operator of last resort' to do everything reasonably necessary for the effective and economic management, planning and operation of ports. This provision is in line with best international practice to empower the Authority to exercise.
The Bill has carefully been worked out to ensure that the transition from the Authority in its present form, as a division of Transnet is carefully managed whilst at the same time not unnecessarily delaying its ultimate exit from the Transnet stable. It is important to indicate that the bill has been drafted so that throughout all these stages of the development of the Authority, it enjoys the status of the Authority and is fully empowered to perform the function of the Authority as if it were the Authority. It is important for me to state that throughout the entire process of the development of the Authority, workers employed by the Authority are guaranteed their positions.
The Bill before you entrusts the Minister of Public Enterprises with the function to appoint the members of the Board of the Authority and to hold shares of the Authority on behalf of the Government. The Board of the Authority is fully empowered to undertake various functions and among other authorizations, the authority will approve the strategic and business plan, approve port reform measures and most importantly ensure that small and medium-sized enterprises owned by historically disadvantaged groups have an equitable opportunity to participate in the operations of facilities in the ports environment.
The White Paper on National Commercial Ports Policy had identified the need for a ports regulator with the main aim to regulate the Authority:
1. To ensure impartiality and equity in the access to port services; and
2. To rule on any complaint by port users of monopoly pricing on the part of the Authority
3. To monitor the business relationship between the Authority and Transnet
In order to ensure impartiality of the Authority, the Bill establishes an independent ports regulatory body to be known as the Ports Regulator. The main function of the Regulator will be to hear complaints, appeals, ensure equity of access and most importantly, consider tariffs and other charges the Authority will be imposing for the services it will be providing in ports.
Madam Speaker, before appointing any member to the board of the Authority, each member will have to declare whether he or she has any direct or indirect interest in the business of the ports. Members of the board and staff will further not be allowed to engage in any activity that undermines the integrity of the Regulator or make use of or profit from any confidential information obtained in the course of duty. These measures are necessary to ensure the credibility of the institution and its activities.
In order to attract private sector participation, we have created a legislative mandate empowering the Authority with the right to enter into various forms of agreements, including concession contracts in the design, construction, rehabilitation, development, financing, maintenance, provision or operation of port infrastructure or services.
In order to promote the culture of co-regulation, all operators and service providers will be required to be licensed before they can provide a service within the port environment. Transitional provisions have been made protecting and also requiring those persons who are presently providing services in ports and or in offshore cargo handling facilities to reapply for licenses within the stated period of time.
In order to deal with historical imbalances, it is critical to empower the Authority with the authority to initiate restructuring of land use in ports to enable the Authority to decide future operational strategies. It is however of importance that such restructuring must have the aim of correcting a historical imbalance where such has been identified and that there must have been a process of consultation initiated by the Authority.
To promote sustainable development, it is vital to have adequate consultation and discussion the port facilities, development and operations with relevant stakeholders. Because of the influence of the larger ports on their environment and the important transport and economic role they fulfil, there are a number of authorities and organisations that have an interest in, or are affected by ports and their operations. It is in this context that port consultative committees at various levels must be supported as a platform of engagement more particularly on issues affecting port cities.
Madam Speaker, this Bill confirms that ports are important for our country's economic growth. In recent times, the functions of ports have changed from merely being points of entrance or exit, to being industrial and logistics focal points. The main purpose of the National Ports Authority Bill therefore is to ensure that ports in our country comply with modern demands by the provisioning of efficient, safe and affordable port services.
In closing, Madam Speaker, I summarise the specific objectives of the Bill as being to:
1. Provide for the establishment of the National Ports Authority to own, manage, control ports on behalf of the State;
2. Provide for the transfer of ports, land and other rights and obligations from Transnet to the Authority
3. Provide for the establishment of the Ports Regulator
4. Ensure equity in the access to ports facilities in a non-discriminating manner
5. Authorise the Authority to enter into various forms of contracts including concessions
6. Provide for the licensing of port services and facilities
7. Authorise the charging of fees and
8. Amend other laws that have a bearing on the activities of the ports
I would like to once-again thank the Portfolio Committee and its Chairperson for all the work from their side to ensure that the Bill is in the House today. This Bill is indeed an outcome of fruitful but robust debate and input by all interested stakeholders who participated in the process.
By passing this Bill, this House will be creating a framework that is so much needed in the journey of ports sector reform process.
I would like to indicate that through the National Framework Agreement process government and labour are endeavouring to address the concerns and fears of labour. We will as government go out of our way to arrive at an agreement with labour. This NFA process, however, cannot interfere with the passage of this Bill. I repeat that we will as Government go out of our way to address work concerns.
I wish to thank all those who have contributed to this process.
I thank you and remember the economic life of port states is measured by the level of efficiency of its ports.
Issued by the Ministry of Transport, 16 September 2003
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