national ports authority 2019 · • air quality management to reduce pollution/emissions from...

National Ports Authority 2019

Highlights• Revenue grew by 6,4% to R12,5 billion• EBITDA increased by 15,6% to R8,4 billion• Achieved a DIFR of 0,41 against a target of 0,75

Business overviewTransnet National Ports Authority (National Ports Authority or TNPA) was established through the National Ports Act, No 12 of 2005 (the Ports Act) to be a landlord port responsible for the safe, efficient, effective and economic functioning of the national ports system which it manages, controls and administers on behalf of the State.

Section 11 of the Ports Act prescribes the core functions of the National Ports Authority as follows:• To plan, provide, maintain and improve port infrastructure;• To promote the use, improvement and development of ports and

control land use within the ports, having the power to lease port land under conditions that it determines;

• To promote greater representation, in particular to increase participation in port operations of historically disadvantaged people;

• To provide or arrange marine-related services, i.e. pilotage services, tug assistance, berthing services, dredging and hydrographic services;

• To ensure that adequate, affordable and efficient port services and facilities are provided, including regulatory oversight over all port activities; and

• To provide aids to assist the navigation of vessels within port limits and along the coast.

The National Ports Authority (TNPA) occupies a strategic position in the country’s transport logistics chain, managing South Africa’s eight commercial seaports, namely Saldanha, Cape Town, Mossel Bay, Port Elizabeth, Ngqura, East London, Durban and Richards Bay. Port Nolloth, the ninth port, does not handle any commercial cargo and is in its entirety leased to De Beers Consolidated Diamond Mines.

The ports under the control of the National Ports Authority span the South African coastline which measures approximately 2 800 km. The National Ports Authority manages port land of approximately 43,4 million m2 , with some 27,0 million m2 being lettable area and 4,9 million m2 being vacant area, and the remainder being environmentally sensitive areas. The National Ports Authority currently manages about 750 leases across the ports.

Operating within the port industry, the National Ports Authority provides its services to port users, which include terminal operators, shipping lines, shipping agents, cargo owners and the clearing and forwarding industry. The National Ports Authority also carries a distinctive feature of being self-sustaining, unlike most other landlord port authorities that rely on national or provincial governments for financial support.

Transnet National Ports Authority 2019 1

Where we operate The map below depicts the geographic location of the national ports system.

Beit Bridge

LIMPOPO

MPUMALANGANORTHWEST

FREESTATE KWAZULU-

NATAL

EASTERN CAPE

GAUTENG

NORTHERN CAPE

Maputo

Richards Bay

Durban

Port ElizabethMossel BayCape Town

Saldanha

Sishen

Ngqura

EastLondon

WESTERN CAPE

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■

■

■■

■

■

North Nolloth

■

Commercial Ports

▲

■

Non-commercial Ports

Transnet Corporate Centre Johannesburg

Figure 1: Eight operational ports; the ninth port, Port Nolloth, does not handle any commercial cargo

Regulatory environmentAs a regulated entity, the National Ports Authority is required to ensure that the execution of its strategy is in compliance with the Ports Act. The execution of the Operating Division’s mandate is undertaken within a regulated environment whereby the National Ports Authority assumes the role of a regulator of port users while also being regulated by the Ports Regulator.

The National Ports Authority recognises its accountability to all its stakeholders under the regulatory requirements applicable to its business and is committed to high standards of integrity in the conduct of its business. In view of the importance of complying with the ever-increasing universe of regulatory requirements and the increased national and international emphasis placed on the supervision thereof, the effective management of the regulatory risks to the National Ports Authority is essential.

The National Ports Authority evaluates its applicable legislation annually to ensure that it keeps abreast of the changing regulatory environment.

Performance contextStrategic objective Contribution to strategic objective

Reduce the total cost of logistics as a percentage of transportable GDP

• During 2019/20, the National Ports Authority's average tariff adjustment will result in a decrease of 6,27%. The projected overall average tariff adjustment for 2020/21 and 2021/22 will be below the inflation target band. Since 2011, average tariffs for containers and automotives decreased by 46% and 15% respectively.

Effect and accelerate modal shift by maximising the role of rail in the national transport task

• Ensuring effective rail intermodal connectivity to ports by executing infrastructure inspections and maintenance oversight of rail infrastructure within port boundaries.

Leverage the private sector in the provision of both infrastructure and operations where required

• Provision of section 56 (S56) concession opportunities to the private sector to leverage investment in the port system:

– Offshore supply base and LPG terminal in Saldanha – Liquid bulk facilities and green ship recycling in Cape Town – Port Elizabeth Waterfront project – Liquid bulk facility in East London – Maydon Wharf Agri-Bulk Terminal, Island View in Port of Durban – Floating dock and South Dunes liquid bulk facility in Richards Bay


Strategic objective Contribution to strategic objective

Integrate South Africa with the region and the rest of the world

• Improvement of maritime connectivity and creating port capacity through capital investments to provide adequate/modern port infrastructure and to promote transshipment services to the continent and other countries.

• Explore dredging opportunities in Africa and regional training opportunities through the Maritime School of Excellence.

Optimise the social and economic impact of all interventions undertaken by the SOC in the achievement of these objectives

• Air quality management to reduce pollution/emissions from vessels and climate change impact studies to improve infrastructure resilience and operations stability.

• Skills development as well as engineering, artisan and technician training programmes.

• Corporate social investment projects to contribute to the well-being and educational needs of port communities.

• Local procurement and supplier development programmes.

Operational performanceCore initiatives for 2019Enhancement of the customer relationship management system to enable an improved and agile customer service culture.

Enhance terminal oversight and monitoring function • Integrated oversight management is in the process of reviewing

and updating the current integrated oversight framework. The framework is intended to enable the port system to have regular feedback, i.e. interaction between TNPA and all licensed terminals for effective monitoring of the signed off key performance indicators as captured in the Shareholder's Compact and Corporate Plan, including Terminal Operation Performance Standards (TOPS) and Weighted Efficiency Gains from Operations (WEGO).

• Terminal oversight management will review the developed Port Oversight Committee (POC)/National Oversight Committee terms of reference to ensure a holistic approach to oversight management. Planned audits will be conducted to confirm efficiency results and to improve operational efficiencies.

• The development of the Penalty/Incentive and Enforcement Model Framework is underway to enable the enforcement of the performance standards as agreed and tracked at the National Ports Consultative Committee.

• Development of a system solution that will enable the reporting of WEGO and other reporting requirements covering TOPS/Rail Operations Performance Standards (ROPS)/Haulier Operations Performance Standards (HOPS).

Human capital • Completion of the induction manual to support the human

resources onboarding/induction process

• Review the training manual for the POC, in collaboration with legal, operations and regulatory oversight functions.

• Ensure the commitment of Transnet Port Terminals to increase gang sizes at Durban Container Terminal (DCT) to appropriate levels.

• Monitor and track new and current employees who are training to ensure that capability and competency in handling the equipment is enhanced.

• Set up regular dates to engage relevant stakeholders in order to ensure the development of healthy working partnerships.

Equipment capacity and maintenanceThe internal access road to DCT Pier 2 was rehabilitated to facilitate safe access to and from terminal operating areas, and critical safety works were undertaken to ensure continued safe operations.

• Tracking the mobilisation of additional rubber tyre gantries that were transferred from Cape Town Container Terminal (CTCT) to DCT during October 2018. Additional stack capacity of 1 800 ground slots was created.

• Ensuring that terminals have clear equipment maintenance plans and that these are adhered to.

• Increasing the deployment of straddle-twin operation to improve gross crane hours.

• Implementation of the recommended CSIR study that indicates that the best solution for weather delays will be a shore tension solution. The favourability of the solution relates to its reasonable cost, low maintenance and mobility of the shore tension units. The ports of Ngqura and Cape Town have prepared a submission for permission to go out to the market jointly for a service provider to install units for a pilot project at one berth each to determine the system's viability.

• Ensuring the deployment of maximum permissible ship to shore cranes on vessels carrying bigger vessels to help minimise the delays across the port system.

• Longwave and wind study by the CSIR will continue at the Port of Ngqura as well as the installation of early detection sensors to forecast long waves at the Port of Ngqura.


Overview of key performance indicators2017 2018 2019 2019 2020

Key performance area and indicator Unit of measure Actual Actual Target Actual Target

Financial sustainabilityRevenue R million 10 379 11 699 12 243 12 450 12 424EBITDA R million 6 367 7 196 8 105 8 317 7 093Return on invested capital % 5,3 6,8 6,2 3,7 5,2Revenue per employee R million 2,5 2,8 2,8 2,9 2,4EBITDA margin % 61,3 61,5 60,7 66,8 57,1Operating profit margin % 43,8 47,2 41,7 49,3 37,8Gearing % 28,4 24,0 25,0 16,7 19,8Net debt to EBITDA times 3,0 2,2 2,1 0,2 2,0Return on total average assets – excluding capital work-in-progress (CWIP) % 5, 3 6,6 6,4 7,1 5,6Asset turnover – excluding CWIP times 0,1 0,1 0,2 0,1 0,1Cash interest cover times 3,4 3,9 3,1 5,1 3,9

Capacity investmentCapital expenditure R million 2 020 1 054 2 636 941 2 706

Operational excellence

ProductivityAnchorage waiting time

– DCT • Pier 1 average hours 26 42 ≤ 30 25 ≤ 25 • Pier 2 average hours 30 79 ≤ 40 36 ≤ 30

– CTCT average hours 25 34 ≤ 28 34 ≤ 25– Port Elizabeth average hours 30 33 ≤ 30 22 ≤ 35– Ngqura average hours 16 42 ≤ 28 29 ≤ 28– Richards Bay average hours 21 76 ≤ 70 55 ≤ 60

Average ship turnaround time– DCT

• Pier 1 container STAT hour 51 69 ≤ 55 62 ≤ 55 • Pier 2 container STAT hour 55 72 ≤ 53 72 ≤ 63

– CTCT container STAT hour 26 32 ≤ 27 31 ≤ 32– Port Elizabeth container STAT hour 16 20 ≤ 20 19 ≤ 25– Ngqura container STAT hour 24 38 ≤ 30 29 ≤ 30

Dry bulk

– Coal (Richards Bay) hours 44 46 ≤ 46 40 ≤ 45– Iron ore (Saldanha) hours 45 47,3 ≤ 50 47 ≤ 50– Manganese (Port Elizabeth) hours 85 73,1 ≤ 78 71 ≤ 78

Berth occupancy– DCT

• Pier 1 % 611 64 60 – 70 69 65 – 75 • Pier 2 % 611 69 65 – 75 69 65 – 75

– CTCT % 73 64 65 – 75 61 60 – 70– Port Elizabeth % 50 48 55 – 65 46 55 – 65– Ngqura % 47 68 70 – 80 60 70 – 80

Berth utilisation – DCT

• Pier 1 % 751 93 70 – 80 92 85 – 95 • Pier 2 % 751 92 85 – 95 93 85 – 95

– CTCT % 91 80 85 – 95 81 70 – 80– Port Elizabeth % 82 84 75 – 85 83 75 – 85– Ngqura % 80 87 75 – 85 85 75 – 85

Market segment competitiveness

Volume and revenue growth

Containers 000 TEUs 4 466 4 778 4 616 4 682 4 902Break-bulk million tonnes 6,6 7,1 7,4 6,2 7,6Liquid bulk million kilolitres 41,0 44,5 42,1 41,1 40,4Dry bulk million tonnes 179,0 180,6 180,1 179,4 190,9Vehicles units 666 810 676 508 716 789 722 791 724 141

TariffsAverage tariff increase % 0 6,0 2,5 (6,27) 4,81 These were not split in the 2017 financial year.


2017 2018 2019 2019 2020Key performance area and indicator Unit of measure Actual Actual Target Actual Target

Sustainable developmental outcomes

Human capitalTraining spend % of personnel cost 3,4 5,9 5,9 2,9 3,1Employee turnover % 5,0 5,4 5,0 5,2 5,0Employee headcount permanent 4 161 4 351 4 999 4 345 5 214Revenue per employee R million 2,5 2,7 2,8 2,9 2,4

Risk, safety and healthCost of risk % of revenue 2,8 2,7 3,2 2,4 0,3DIFR rate 0,7 0,3 0,8 0,4 0,8

Financial performance reviewYear ended Year ended

31 March 31 March2019 2018 %

Salient features R million R million change

Revenue 12 450 11 699 6,4

– Containers 4 239 4 186 1,3– Break-bulk 208 253 (17,8)– Dry bulk 1 298 1 283 1,2– Liquid bulk 700 768 (8,9)– Automotive 403 370 8,9– Clawback and levy — (503) (100)– Other 5 602 5 342 4,9

Operating expenses (4 133) (4 503) (8,2)

– Energy costs (534) (509) 4,9– Maintenance (285) (410) (30,5)– Materials (82) (83) (1,2)– Personnel costs (2 383) (2 551) (6,6)– Other (849) (950) (10,6)

Profit from operations before depreciation, derecognition, amortisation and items listed below (EBITDA) 8 317 7 196 15,6Depreciation, derecognition and amortisation (2 183) (1 941) 12,5

Profit from operations before items listed below 6 134 5 255 16,7Impairments and fair value adjustments 2 715 (447) 607,4Net finance costs (1 368) (1 887) (27,5)

Profit before taxation 7 481 3 815 96,1

Total assets (excluding CWIP) R million 89 305 90 424 (1,5)

Profitability measuresEBITDA margin1 % 66,8 61,5 5,3Operating margin2 % 49,3 44,9 4,4Return on average total assets (excluding CWIP) % 7,0 6,6 0,4Asset turnover (excluding CWIP) times 0,14 0,14 0Capital investments3 R million 941 1 054 (10,7)

EmployeesNumber of employees (permanent) number 4 182 4 161 0,5Revenue per employee R million 2,98 2,8 6,41 EBITDA expressed as a percentage of revenue.2 Profit from operations before impairment of assets, fair value adjustments, net finance costs and taxation expressed as a percentage of revenue.3 Actual capital expenditure (replacement plus expansion), excluding borrowing costs.


Performance commentaryFinancial sustainability• Revenue increased by 6,4% to R12,5 billion (2018: R11,7 billion),

due to an increase in real estate, port authority and cargo dues revenue. When excluding clawback, revenue showed an increase of 2% to R12,5 billion (2018: R12,2 billion).

• Net operating expenses decreased by 8,2% to R4,1 billion (2018: R4,5 billion), mainly due to savings on maintenance and other operating costs.

• EBITDA was 4% above budget (R8,4 billion) and showed a year-on-year increase of 15,6% at R8,3 billion (2018: R7,2 billion).

Looking aheadThe National Ports Authority intends to facilitate trade and unlock economic growth by contributing to reducing the cost of doing business and influencing the development of a globally competitive port, transport and logistics system for the country and the region. The National Port Authority seeks to carry out its role in line with the National Commercial Ports Policy and the National Ports Act, taking into account the changing dynamics in the global economy and trends in the port environment.

The division's key business focus will be mainly centred on:• Providing adequate, reliable, futuristic port and marine

infrastructure capacity ahead of demand; • Improving port efficiencies through benchmarked standards and

effective oversight;• Influencing the development of globally competitive integrated

supply chain solutions;• Advancing business development opportunities in the ocean

economy, real estate, value-added offerings, green ship recycling and LNG; and

• Innovative port pricing to support economic development and growth.

Key programmes will be concentrated on the following areas, amongst others, namely:• Port infrastructure development in line with the approved

capital programme;• Maintenance of port infrastructure and marine fleet;• Acquisitions and/or renewal of marine fleet;• Effective oversight to enhance port efficiencies;• Safety and health programme;• Development of a green port system;• Exploring business development opportunities and advancing

S56 projects;• Enhancing digital transformation and integration; and• Tariff review and application with the Ports Regulator.


Looking aheadInitiatives to improve operational efficiencies in the coming financial year include a study that was conducted with the following recommendations that were made:• The implementation of the CSIR's longwave study

recommendations. The aim of the study was to find ways to improve the ship working hour (SWH) in CTCT through forewarning on the occurrence of storm surges as well as to explore approaches to improve the stability of the vessels during the surge. Trials will start in February 2020.

• To minimise the impact of inclement weather, the ports of Ngqura and Cape Town aim to jointly go out to market and procure a service provider to install the Hydraulic Mooring Tension System solution recommended by the CSIR. The system will be piloted at one berth each to determine its viability for a period of two years.

• In operationalising the joint operating centres (JOC), the following initiatives will be pursued in 2020 :

– Post Implementation Review (PIR) of the JOC project, based on the original approved business case.

Mitigation as well as closing of gaps identified in the JOC PIR. Necessary enhancements will be completed so that the envisaged benefits of the business case can be fully realised.

– Ensuring full utilisation by JOCs (at all ports) of the existing TNPA Integrated Port Management System.

– Collaborative engagement on the sharing of respective JOC capabilities with the Transnet Operations Centre (TOC) project. National Ports Authority and the TOC project have the shared objective of creating real-time visibility of the Transnet’s value chain.

Sustainable developmental outcomesHuman capital (employment and transformation) • The permanent headcount decreased to 4 182 employees

(2018: 4 351)• Black employees represented 88% of the total employee base

(2018: 88%) • Female employees represented 35% of the total employee base

(2018: 35%) • People with disabilities represented 2% of the total employee

base (2018: 2%) • The employee turnover rate is 5,2% compared to a target of 5%. • The absenteeism index of 1,8% is lower than the target of 2,5%.

Skills development• In total, 12 870 learners were exposed to the business by means

of exhibitions and port festivals so as to create awareness of the port environment among the youth.

• Some 1 650 pupils visited the port on school tours. • The Operating Division provided the following training in terms

of critical skills: – 31 engineers in training – 1 technician in training – 35 marine pilots in training – 195 marine cadets were trained

Capacity creation and maintenanceThe National Ports Authority’s capital expenditure was 66% below budget at R0,9 billion (2018: R1,1 billion), due to underspending on the acquisition of a second grab hopper dredger, cutter suction dredger, bulk electrical power supply for the third tippler (Saldanha), the Tank farm (Ngqura), and the acquisition of helicopters for Durban and Richards Bay.

Looking ahead• TNPA plans to invest R2,7 billion during the 2020 financial year

and R19,8 billion in capacity creation, infrastructure renewal and modernisation projects over the next four years to 2023:

– Capacity creation in the 2020 financial year: R970 million budgeted to spend on deepening and

lengthening berths 203 to 205 at the DCT. However this project has been put on hold and no spending is expected on the main contract during 2019/20

R424 million to spend on Tank farm berth B100 in Ngqura – Operation Phakisa projects in the 2020 financial year:

R254 million budgeted on all Phakisa projects – Fleet replacement in the 2020 financial year:

R218 million on the second grab hopper dredger R112 million on acquisition of new cutter suction dredger

Operational performanceAverage anchorage waiting time• Ports performance, as measured by average anchorage waiting

time varied during the year under review. • DCT’s performance was favourable for both Pier 1 and Pier 2, with

Pier 1 achieving 25 hours against a target of 30 hours and Pier 2 achieving 36 hours against a target of 40 hours.

• CTCT achieved 34 hours average anchorage waiting time against a target of 28 hours. Unsatisfactory performance was mainly due to adverse weather conditions.

• Port of Ngqura marginally missed the target of 28 hours, achieving 29 hours during the year under review. As with CTCT, the Port of Ngqura was adversely affected by inclement weather. DCT failed to achieve its targets at both Pier’s 1 and 2; with Pier 1 achieving 62 hours against target of 55 hours and Pier 2 achieving 72 hours against target of 53 hours.

Ship turnaround time (STAT)• Overall, STAT ports performance was mixed during the year

under review • Ngqura achieved positive results of 29 hours against a target of

30 hours• CTCT marginally missed its STAT target, achieving 31 hours

against a target of 27 hours• DCT failed to achieve its targets at both Pier 1 and Pier 2, with

Pier 1 achieving 62 hours against target of 55 hours and Pier 2 achieving 72 hours against target of 53 hours.


Health and safety• A DIFR of 0,41 (2018: 0,3) was recorded against a target

of 0,75.• Incident management and monitoring are performed on an

annual basis.

Environmental stewardship For the first time, during the 2019 financial year, TNPA rationalised all ports waste management contracts and procured ports waste handling services from the national office. This was key for standardising processes and improving efficiency. For the entire TNPA, approximately 1 060,8 tonnes of hazardous waste was disposed of at a cost of R6 304 million in 2019. A total of R1 960 843 million was spent in the disposal of general waste; 2 118 tonnes of general waste was recycled, of which rebates of R823 252 and R1 106 were received for scrap metal and paper respectively. Scrap metal recycling is done predominantly at the ports of Durban and East London and the practice will be extended to other ports in the future.

• Control and clearance of alien and invasive plants As a requirement of the National Environmental Management

Biodiversity Act, No 10 of 2004, Government has listed invasive and alien plant species that land owners should control and eradicate in order to protect local biodiversity and water resources. In the prior financial year, a total of 1 038 ha of land was cleared in the ports of Durban, Richards Bay and Port of Ngqura at a cost of R391 476.

• Estuarine management The Durban Bay and the Buffalo River estuarine management

plans were complete and have been gazetted by the Department of Environmental Affairs. The uMhlathuze/Richards Bay plan is in its final stages, and is awaiting gazetting by the department for public comment. The Port of Durban is faced with a challenge of increased pollution that originates from sources outside the port. The pollution is being washed into the port as a result of storms. Diminishing the effects of increased pollution at the Port of Durban requires aggressive implementation of the Durban Bay Estuarine Management Plan, with all stakeholders within the catchment playing their role.

• Management of sensitive habitats TNPA ports, due to their location across the South African

coastline, are very rich in biodiversity. The nature of the biodiversity differs from port to port. Some ports have highly

sensitive habitats and red data listed species that require the highest level of protection. These range from wetland habitats in the Port of Richards Bay, mangrove forests in Durban and Richards Bay to Bird Island in the Port of Ngqura. Transnet’s project development framework ensures that ecological impacts and potentially fatal flaws in proposed developments are identified. The organisation considers environmental protection integral to all infrastructure development. To this end, biodiversity management through extensive marine ecological monitoring has been in place for several years so that any changes in the aquatic environment can be identified early for timeous intervention.

• Port of Ngqura In 2019 the Department of Environmental Affairs declared the

Addo Elephant Park Marine Protected Area (MPA), as a protracted area. The Port of Ngqura is within the borders of Addo Elephant Park MPA which is known for having the highest percentage of endemic marine invertebrates and seaweed along the South African coast. It covers the estuary, Croix Island and Bird Island which are habitats for the endangered African penguins and Cape garnets respectively. The declaration of the space as an MPA is a significant development that challenges the port to be more stringent in implementing environmental controls.

Social accountabilityDuring the 2019 financial year TNPA spent approximately R3,0 million towards corporate social investment and the highlights include the following:

• Mandela Day was commemorated throughout the port system and various non-government organisations were supported with basic needs ranging from facility refurbishment, groceries, sanitary wear and feeding the frail.

• As per our annual commitment, TNPA contributed to the South African Penguin Rehabilitation and Environmental Centre, a voluntary organisation that rehabilitates sea birds.

• In partnership with the Department of Transport and South African Maritime Safety Authority, TNPA participated in the commemoration of World Maritime Day in Badplaas in Mpumalanga where TNPA pledged support of providing swimming lessons to Amanzi Primary School learners.

• During the financial year TNPA sponsored the tuition of 22 learners at Lawhill Maritime Centre in Simon’s Town, a prestigious high school specialising in maritime economics.


National Ports Authority’s top five risks and key mitigating activities

Key risks Mitigating activities

Inadequate port infrastructure maintenance

• Ensure dredger availability to dredging berths, channels and turning basins• Ensure timeous procurement of services and adherence to Procurement Procedure Manual• Formalise maintenance inspection reports and implement recommendations• Implement the Infrastructure Maintenance Plan• Monitor and improve procurement cycle times• Operations must be informed by a balance between commercial imperatives, maintenance

and the protection of current assets especially in the container sector (operations must allow for the implementation of maintenance programmes)

• Senior management must make it easy for maintenance teams to achieve their goals, and must plan for an interruption to operations in order for maintenance to be carried out

A complex regulatory environment • Conduct internal awareness sessions/compliance management programme• TNPA Deemed Board and perception of bias and or conflict of interest needs to be

managed (currently the members of the TNPA Deemed Board are the same as the members of the Transnet Board and our stakeholders, such as the Ports Regulator of South Africa, perceive this to be a conflict of interest which needs to be managed)

• Formally engage key stakeholders (Government departments, Shareholder, Transnet and regulatory bodies) to mitigate against unintended consequences of legislation relating to the Integrated Coastal Management Act, National Ports Act, Broad-Based Black Economic Empowerment, and others

• Define and monitor the Transnet National Ports Authority regulatory universe• Adherence to Transnet’s compliance framework• Compliance department to be capacitated so that staff can provide assistance at port level

and at head office level

Safety risk Safety management system:• Regular risk assessments and implementation of the relevant risk mitigations • Strict adherence to standard operating procedures• Safety talks and green talks• Implementation of the Visible Felt Leadership programme• Audits and inspections• Scheduled attendance of Safety, Health and Environment Committee meetings• Red and Green Slips• Medical surveillance• Safety symposiums• Implementation of an Internal Safety League to raise awareness of safety critical activities

and incentivise employees to act in a safety-conscious manner at all times

Challenges experienced in introducing new entrants and industries into the port system

• Implement the S56 Procedure Manual• Training and development of all cross-functional teams to deal with concessions• Acquire sector-specific knowledge in the liquid bulk, oil and gas sectors and the regulatory

environment affecting same• Dedicate capable resources to strategic projects that have been prioritised and manage

these cross functionally, i.e. appoint transaction advisors and or specialists for major projects as required by the PFMA and strengthen and improve governance structures, i.e. S56 Steerco Adjudication Specifications Committee, Project Steerco and Port S56 Committee

• Improve tracking and monitoring of projects through improved governance (Enterprise Portfolio Management Office), Gate Reviews, Capital, Investment Forum)

• Define and implement measures to improve Project Risk Management

Security of information and cyber risk • Improve systems security and general risk management by testing the integrity of systems• Ensure that all existing systems and newly implemented systems (Order To Cash, Integrated

Port Management System, etc.) are fully tested against cyber threats and ensure that the necessary mitigations are in place

• Review and upgrade ,where necessary, all systems protocols • Test and improve disaster recovery• Transfer the risk where economically viable by procuring insurance


Opportunities• Increasing revenue and employment through Operation Phakisa

projects• Expanding the South African port system (e.g. Durban

Dig-out Port)• Improving efficiencies and customer service through technology

and customer relationship management• Improving supply chain efficiencies through efficient and

effective JOCs• Enhance port development to include industrial development

facilities such as manufacturing and beneficiation• Explore new business development opportunities to provide

value-added services • Energy provision hub to support beneficiation plants and ocean

economy business• Promotion of the Port of Ngqura as a regional transshipment

hub in sub-Saharan Africa• Support regional integration and development through

collaboration on various fronts, such as marine training, port planning and engineering, technology, port maintenance and dredging, amongst others

• Develop a Maritime Centre of Excellence for the continent• Promote the South African port system globally to attract

investments and optimise industrial development zones


AbbreviationsCSIR Council for Scientific and Industrial Research

CTCT Cape Town Container Terminal

DCT Durban Container Terminal

DIFR Disabling injury frequency rate

JOC Joint operating centres

LPG Liquefied petroleum gas

S56 Section 56 of the National Ports Act, No 12 of 2005

SOC State-owned company

STAT Ship turnaround time

TEU Twenty-foot equivalent unit


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