Aug 18, 2022

Mawazo Writing Africa

Writing about the main

Transnet invites SMEs to help it spend billions to expand SA’s major ports

Transnet has urged small businesses to take advantage of the projected R4.8 billion it will use to expand the Port of Durban over the next three years.

This has been made available to small business owners of communicated to the Transnet National Ports Authority (TNPA) in an engagement meeting in Durban on Thursday. The agency has held sessions for SMEs to strengthen their partnerships with small business owners and educate them about the opportunities open to them in all of Transnet’s eight commercial ports in the country.

Moshe Motlohi, Managing Director of the Eastern Region , said that since 2021 they have started a “regionalization” of the TNPA ports, creating the regions: the Eastern Region (Durban and Richards Bay), the Central Region (Eastern Cape) and the Western Region (Western Cape). /p>

“We were tired of always telling people that certain services can only be done at headquarters, so we decided to give the ports enough powers to run the day-to-day operations and the to meet the immediate needs of the business. We will then bring headquarters close to these regions,” he said.

He said the headquarters would support the ports and strengthen the relationship with the provincial governments.

Motlohi explained the implications some of the biggest setbacks they’ve experienced in recent years, including Covid-19, the riots, cyber attacks on ports and recent flooding in the province.

“The way we are When we try to exercise, we get something that interferes with our plans, disrupts our activities, and affects our finances.”

“Two and a half years ago we couldn’t spend the money we were hoping for, so Jobs we could have created and opportunities for SMEs have died.”

He said they have been working with clients, chambers of commerce, government officials and policy analysts to find ways to create a meaningful change of environment s – hence the need to strengthen the relationship with small businesses.

He said there will be many opportunities for SMEs to become Transnet partners now and in the near future.

< p>“We are the largest region so it is important that we get it right here as the region is expected to spend R100 billion over the next 15 years or so. Not all of it will come from us, some will come from people who think KZN is investable.

“We have the facilities they need. Durban is the most attractive port city and Richards Bay is the most attractive when it comes to coal and liquid products.”

Siyabonga Ndwandwe, Acting General Manager of the Project Delivery Unit, said TNPA understands the challenges and the national agenda combat them and is ready to drive them forward.

“Localization of sourcing growth comes with it. The government intends to respond on various platforms such as: B. SMME development, BBBEE, competitive supplier programs… So we understand the historical issues and there is a framework for how we need to address them,” he said.

“There is a ‘black industrialization’. that really aims to unlock access to both tapped and untapped finance and markets. We hope to open people up to other things that are available as part of project delivery that we can educate ourselves on, aside from pouring concrete and laying bricks.”

Outline of what’s in the Region in the investment pipeline is Over the next three years, Ndwandwe encouraged SMEs to “find the pathways that fit their services and find a way in”.

“Richards Bay is reviewing an investment proposal of around 590 million R over the next three years. In the port of Durban it’s R4.3bn. Hopefully if we break these numbers down you’ll see where they fit.”

There are 66 projects in the pipeline – 39 of which are slated for Durban. 35 have not started yet, including 15 that are still in the concept phase.

Mzonyana Sidinana, Deputy General Manager for Supply Chain, outlined the processes to be followed in order to receive a tender at Transnet.

He said that there are pre-qualification requirements to qualify for a tender at Transnet: BBBEE level, subcontracting and need for local content.

Although the requirements by the Constitutional Court in February, Sidinana, said they had 12 months to find “better terms” to be in place by February next year.

He said the Transnet charter requires a fair and equitable procurement process among the suppliers.

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“I heard about an ‘evergreen’ contractor who always gets orders. Through this restructuring of the organization we ensure that we have an SME development that ensures that no service provider is “evergreen” or constantly receiving orders. The process has to rotate,” he said.

“Processes have to be competitive, so there’s no way we can have a service provider. There must be at least three service providers competing.”

Motlohi said it is imperative that people, particularly those from port cities, become familiar with ports — “the elementary parts of seafaring language”. He suggested that elementary school students should visit ports and learn the basics.

“Everyone in the port cities must know at least one seaman’s language. The biggest thing we have in Durban is the ocean, but people don’t even know the elementary parts of the language,” he said. “This will help them connect with international investors because we can do better from a language point of view. Relationships precede business because you can’t do business with someone you don’t trust.”

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