Ports

Question 1

What is the primary role of ports?

Answer 1

To stimulate trade through the handling of cargo at the lowest economic cost to be internationally competitive and stimulate foreign trade

Question 2

How is the goals reached

Answer 2

1. Quick turnaround
2. Use of modern technology and equipment
3. Sufficient accessibility to ports and sufficient land area for port functions

Question 3

What are the objectives of the National Ports Act?

Answer 3

1. Promote development of an effective and productive SA ports industry contributing to economic development and growth
2. Establish institutions to support governance of ports
3. Promote and improve efficiency in management and operation of ports
4. Enhance transparency in management of ports

Question 4

What are the functions of the Authority?

Answer 4

Main function is to own, manage, control and administer ports to ensure efficient and economic functioning. To do so they must:
1. Plan, provide and maintain infrastructure
2. Control land use within ports
3. Provide road and rail access within ports
4. Arrange services such as water, light, power

Question 5

What are the functions of the Regulator?

Answer 5

1. Exercise economic regulation of the ports system in line with government’s strategic objectives
2. Promote equity of access to ports and port facilities
3. Monitor activities of Authority

Question 6

Discuss the forms of port ownership:

Answer 6

1. National/State-owned - managed and operated by state department/governing body appointed by legislation
2. Municipal owned - main aim to cover costs
3. Railway owned
4. Privately owned
5. Public trusts - Controlled and managed by board consisting of port users, state, and interest groups

Question 7

Discuss traditional arguments for state ownership of ports

Answer 7

1. State responsible for national welfare of country and therefore dependent on effective functioning of ports
2. State responsible for redistribution of wealth and will see that equality in supply/pricing of port infrastructure exists
3. State will ensure public interests in ports is promoted and will prohibit monopolistic practices
4. State willing to undertake long-term planning
5. Only the State will employ a port strategy in line with national strategy

Question 8

Discuss disadvantages of state ownership

Answer 8

1. State departments exposed to political influences
2. Financing of projects influenced by economic circumstances in country and fiscal constraints. Port development should take place regardless
3. State departments subject to universal employment practices - agreements, conditions which can result in anti-productive procedures
4. State departments do not make provision for custom, financial and culture differences, which is unique to ports

Question 9

What are the different Port Management Models?

Answer 9

1. Comprehensive port - authority owns and operates basic infrastructure, superstructure, and handling operations, also regulatory role
2. Tool port - authority owns and operates basic infrastructure, owns superstructure but leases it to operators
3. Landlord port - Authority acts as landlord and leases all land to port users - operating functions fulfilled by private sector - earn revenue from leasing

Question 10

Port revenue divided into two groups:

Answer 10

1. Ship charges
2. Cargo services

Question 11

Discuss ship charges

Answer 11

1. Port dues
   *payable at all ports where ship calls
   *charges paid for provision and maintenance of basic port infrastructure
   *Tariff determined in terms of gross cubic capacity of ship
2. Berth dues:
   *payable for berthing at quay
   *Tariff based on GRT and time spent in ports

Question 12

Discuss cargo services

Answer 12

1. Cargo dues:
   *Payable for all cargo handled over quay
   *Tariff based on volume/value
   *Revenue applied for provision of maintenance of cargo infrastructure
2. Cargo handling
   *Payable for loading/offloading of cargo
   *Payable by cargo owner and covers capital and maintenance and operating costs of equipment