Is the Transnet National Ports Authority due for corporate restructuring?: a study of the imperatives for the authority’s corporate structure and functions.

Abstract

This mini dissertation critically analyses the corporate structure and functioning of the Port Authority, which is responsible for the South African port system, which is key to trade, and the country’s economy. The current Port Authority is known as the Transnet National Ports Authority (“TNPA”), because it is a division within Transnet SOC Limited. This study considers how this state of affairs came about, looks at the performance of the TNPA, examines the founding legislation for the Port Authority followed by a critical analysis focused on literature and best practices. The findings point to the legislation, the National Ports Authority Act 12 of 2005 not being aligned with the Commercial Ports Policy in terms of which it was drafted. They also point to the non-implementation of the legislation, specifically in terms of the corporate structure that the Ports Authority should have. Thirdly, the findings are that the TNPA, in its current form, results in a conflict of interest in its relationship with Transnet Ltd and the sister divisions. Thus, the incorrect corporate structure is a contributing factor to the sub-par performance of the TNPA. This study concludes with recommendations on what the appropriate corporate structure is for the Port Authority, and the corrective measures that government must take, which may not necessarily include introducing new legislation before the policy issues are resolved.