Private operator being considered to run container terminal

Increasing port efficiencies

07 October 2021 | Infrastructure

Walvis Bay • [email protected]

The Namibian Ports Authority (Namport) is looking at a private sector partner to manage its N$4.2 billion container terminal in Walvis Bay.

In a memo dated 4 October and addressed to staff, Namport chief executive Andrew Kanime said that the completion of the new container terminal facility coincided with a general decrease in container volumes handled.

He attributed this decrease to three factors: The expansion of other ports in the region; the deployment of larger size vessels by shipping lines as part of their drive to save on operating costs; and the concentration of volumes by shipping lines at ports with higher productivity and port efficiencies.

Kanime said that the first mode of operation provides shipping lines with additional capacity to directly handle mainliner vessels and their respective countries’ imports and exports volumes, some of which had previously been transhipped through the Port of Walvis Bay.

The second forms part of a drive to save on operating costs resulting in consolidation of volumes for handling at fewer ports that can handle bigger vessels and for subsequent transhipment to smaller ports.

The third was introduced to reduce the turnaround times of vessels in ports and to streamline costs.

Turnaround strategy

Kanime said that the port authority is currently considering to outsource terminal management to a private operator as part of initiatives to increase container volumes handled at the port and to increase the returns accruing from the investment in the terminal.

He explained that private operators have the capacity to develop the volumes of cargo through the terminal.

“Some of them have relationships with shipping lines and the ability to determine the flow of cargo, especially transhipments. Operators also have greater expertise in port operations and the ability to increase efficiencies given their experiences in the running of ports across the world. They also have more financial resources to invest in port equipment and infrastructure, which are all critical in the efficient handling of the large sized vessels.”

The memo indicates that Namport’s board of directors had taken an in-principle decision to consider the concessioning of the container terminal.

“Government, as the shareholder, has decided that more value may be derived for the country if the private operation of the container terminal is combined with the process of seeking an investor for the National Single Window (NSW) and the Walvis Bay Special Economic Zone (SEZ),” it states

Facilitation tool

The NSW is a trade facilitation tool that allows for the electronic interchange of information amongst all parties involved in customs clearance and related processes, and the digitalization of import and export transactions.

The SEZ is an initiative to develop an industrial estate in Walvis Bay aimed at attracting various industries, through competitive investment incentives and to create economic development and promote employment.

This process is being coordinated by the Namibia Investment Promotion and Development Board and an expression of interest has been issued to the market inviting potential investors to participate in the three project streams, which are jointly named the Walvis Bay Industrial Development Initiative (WIDI).

Terms and conditions

The memo also indicates that the terms and conditions upon which the investors would operate the terminal (alongside the NSW and the SEZ) will be determined at a later stage and ahead of contracting with the selected party or parties.

Kanime emphasised in the memo that every effort will be made to preserve jobs.

“However, the major considerations in such an award would include the value to be derived from such partnership(s) as well as preservation and creation of employment,” he wrote.

He asked that all employees remain positive and lend their support to the process.

“We will update employees on future developments as the process is rolled out.”

Similar News

 

Swakop completes N$7 million road project

16 hours ago | Infrastructure

Swakopmund • [email protected] Roads around schools at Swakopmund are going to become safer after the Swakopmund municipality recently announced it was going to...

Taxi-tariff guide gives legal footing

4 days ago - 14 January 2022 | Infrastructure

Walvis Bay • [email protected] The recently published taxi-tariff guide by the Namibia Bus and Taxi Association (Nabta) to accompany the official taxi-tariff hike...

Namport car imports up 10%

6 days ago - 12 January 2022 | Infrastructure

Walvis Bay • [email protected] Car imports into southern Africa, through the port of Walvis Bay, increased by 10% in the last financial year,...

Walvisbaai se paaie in haglike toestand

4 weeks ago - 21 December 2021 | Infrastructure

Walvisbaai • [email protected] Die onderburgemeester van Walvisbaai, Saara Mutondoka, het ’n mosie rakende die toestand van die paaie in Walvisbaai ter tafel gelê....

Spoorwegbrûe op tuisgrond gebou

1 month - 08 December 2021 | Infrastructure

Die plaaslike maatskappy Metallum Fabrication, wat bestuur word deur mnr. Helge Fischer, het die kontrak gekry om die nuwe spoorwegbrug te bou wat oor die...

New traffic management system aims to eradicate accidents

1 month - 06 December 2021 | Infrastructure

Swakopmund • [email protected] The first phase of a N$128 million traffic management system along the B2 highway in Erongo was launched at Arandis on Monday....

Port users appreciated

1 month - 30 November 2021 | Infrastructure

Walvis Bay • [email protected]a The Namibian Ports Authority (Namport) hosted its annual port users’ event, which showcases appreciation and gratitude towards each port user...

MS Europa visits Port of Walvis Bay

1 month - 29 November 2021 | Infrastructure

Walvis Bay • [email protected] The first passenger liner to dock in the Port of Walvis Bay since the Covid-19 pandemic hit Namibia, arrived...

Passenger liner visits recommence

1 month - 25 November 2021 | Infrastructure

The Namibian Port Authority announced the resumption of passenger vessel services.The port of Walvis Bay will be welcoming the MS Europa today. The vessel will...

One-stop border post progressing

1 month - 23 November 2021 | Infrastructure

The one-stop border post (OSBP) technical negotiation meeting between Namibia and Botswana was recently completed. The online meeting convened by the Trans Kalahari Corridor Secretariat...

Latest News

Swakop completes N$7 million road...

16 hours ago | Infrastructure

Swakopmund • [email protected] Roads around schools at Swakopmund are going to become safer after the Swakopmund municipality recently announced it was going to...

Namibia’s desert lions in dire...

22 hours ago | Environment

Following reports and photos received recently of the Obab lion pride that roams the central western area of the Palmwag concession and the Skeleton Coast...

More lives lost due to...

22 hours ago | Ministries

Health minister Kalumbi Shangula has expressed his concern about the increasing number of people who are reinfected with Covid-19. Namibia recorded 1 876 reinfections since...

NaTIS tackles licence backlog

22 hours ago | Local News

Windhoek • [email protected] New bookings for student licences at NaTIS have been temporarily suspended so that the huge backlog can be made up.According to...

Grumpy’s fishing report

23 hours ago | Fishing

Angling the past week was great with the beaches being relatively quiet since most holidaymakers are back at work. Our pick of the week is...

‘Free water’ costs hundreds of...

23 hours ago | Local News

Windhoek • [email protected] The provision of free water to vulnerable communities in informal settlements since April 2020, has almost doubled the debt of municipalities,...

NSA secures funding for delayed...

2 days ago - 16 January 2022 | Local News

Windhoek ∙ Ogone Tlhage The Namibia Statistics Agency (NSA) will be able to conduct its census later this after securing funding for the...

The Audi Q5, SQ5 Sportback

2 days ago - 16 January 2022 | Motors

Following the Q3 Sportback and the e-tron Sportback, Audi now presents its third crossover utility vehicle, the first-ever Q5 Sportback. This coupé with dynamic lines...

Drones delivering to your doorstep

2 days ago - 16 January 2022 | Technology

Windhoek • [email protected] Namibia will most likely start using drones to deliver medicine to remote locations within the next few weeks.This comes after a...

Load More