TNPA to become independent from Transnet

The Transnet National Ports Authority (TNPA) is set to become a standalone company after Cabinet approved its separation from the Transnet group.

News24 reported that TNPA, which owns and manages the infrastructure and land at South Africa’s commercial ports, will operate independently of Transnet Port Terminals, the company responsible for handling cargo and operating terminals within the ports.

Under the approved arrangement, Transnet will be compensated for the loss of TNPA based on an independent valuation, while liabilities will be divided between the two entities.

News24 reported that government does not expect the separation to result in job losses and will retain ownership and control of national port infrastructure.

The move follows plans first announced by President Cyril Ramaphosa in 2021 to separate the ports authority from the wider Transnet structure.

The Presidency said at the time that an independent port authority would be better positioned to treat terminal operators equally and would have its own board, appointed by the minister of public enterprises, as well as greater autonomy over investment decisions.

The restructuring is part of wider efforts to change the management and operating structure of South Africa’s ports.

Sources: News24, The Presidency, Bowmans, Daily Investor, IOL.