OPPORTUNITIES are being created in the Eastern Cape for port operators following an announcement by government that the private sector will be able to bid to run SA's port operations for the first time next year. Concessions will be accompanied by a R2-billion investment over the next two years in upgrading port infrastructure. The investment aims to modernise ports and accommodate a rapid increase in the volume of cargo moving through them. Three ports in the Eastern Cape will be affected – those of Port Elizabeth, East London and the new port of Ngqura, which will serve the Coega Industrial Development Zone (IDZ). Dutch-based P&O Nedlloyd is a preferred partner in the Coega development. Speaking at the launch of a new national ports authority, Public Enterprises Minister Jeff Radebe said South Africa’s existing seven commercial ports handled about 98 per cent of the country's imports and exports, with cargo volumes totalling 160-million tons last year. "At present, government is of the view that port operations should be concessioned to private operators," said Radebe. The National Ports Authority of SA is to receive the proceeds of the concessions, which will be used to develop and maintain port infrastructure. It will also be responsible for monitoring the concession agreements. The agreements will see the private sector being granted a long-term concession, or right, to manage aspects of port operations, notably cargo handling. Private players will not own the ports, which are set to remain in government hands. Government officials said there was significant interest from foreign players in SA's ports. Portnet is a subsidiary of the state-owned transport utility Transnet. Its transformation into two separate operations has been under way since 1998. Siyabonga Gama, CEO of the National Ports Authority, says the entity will assume the role of infrastructure provider and landlord. Gama says this involves developing, managing and leasing land and facilities as well as the supply of marine navigation and related services to terminal operators and port users.