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Transnet faces Ports Regulator over container concession clamping

4th March 2015

  

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Company Announcement - Transnet National Ports Authority’s 'anti-competitive' interpretation of the National Ports Act, No 12 of 2005, will be put before the Ports Regulators of Durban during a hearing on 5 and 6 March after an application by complainant Siyakhupuka Investment Holdings is believed to have been wrongfully declined.

In 2008, Siyakhupuka requested a concession to operate a container terminal in the Port of Richards Bay, but was denied by the parastatal without reason or adherence to the content of the act.  Siyakhupuka Managing Director Jan Scheepers – a former PortManager in Port Elizabeth and Richards Bay and ex Portnet Divisional Executive - believe that 'Transnet is not applying the content of the law and thereby excluding entities other than TNPA to own terminal concessions'.

During their seven years of challenging TNPA's decision, Scheepers stated the group encountered numerous arguments where the ports authority disregarded the stipulations of the National Ports Act.  'The premise for Siyakhuphuka's complaint to the Ports Regulator is therefore based on the fact that the port’s authority is practicing anti-competitive behaviour,' said Scheepers. The matter was also referred to the Competition Commission - currently under review.

Siyakhuphuka's motivations for the concession application seven years ago was to address the 'blockage' of economic development in Northern KZN, preventing further industrial development owing to the lack of a container facilities in Richards Bay. 

'Agricultural exports of the region’s produce will also be enhanced by the containerised cargo facilities due to fresh produce being exported in cooler facilities,' said Scheepers. Advocate Piet Haasbroek will represent Siyakhupuka’s complaint against Transnet decision to demonstrate to the Ports Regulator how the TNPA disregarded their legal obligations in declining  Siyakhupuka's application.

Edited by Creamer Media Reporter

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