GOVERNMENT PLANS to privatise certain port operations are creating opportunities in the Eastern Cape, which has the largest concentration of ports in South Africa. The province is served by both the East London and Port Elizabeth harbours, with Africa’s most modern deep-water harbour under construction at Ngqura in the Coega Industrial Development Zone. Transport minister Dullah Omar told parliament that 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,” he said during the second reading of the National Ports Authority Bill. “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,” he said. In order to attract private sector participation, the government has 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,” he said.