PPP decision marks the start of new era

Of course,this will not provide a way forward for everyone – unless the private partner has at least 51% of the shareholding it is unlikely that private operators will be interested.

But in terms of productivity, introducing a private partner will certainly improve efficiency. South Africa has its different socio-economic factors, but is not a great deal different in some respects to Nigeria where private concessionaires have started to make big inroads into the berthing delays,thus increasing productivity.

When the terminals in Durban, Cape Town and Port Elizabeth opened in 1977, their productivity was better than those in Rotterdam,Hamburg and Le Havre.The theory is if it was done before then it can be done again. All the ingredients needed for success exist and there are signs that the government may at last be looking in the right direction.

The PPP principles can be found on www.treasury.gov.za