Abstract:
Port performance is a critical factor that can shape the Southern African Development
Community’s (SADC) trade competitiveness. The South African port system has been
facing operational inefficiencies for several years, despite the implementation of regulation,
Port Performance monitoring, performance standards by the Port Authority, and the Ports
Regulator’s Weighted Efficiency Gains from Operations (WEGO).
Poor port performance increases business costs and reduces ports' competitiveness in the
region. The longer-term implication is a loss of both competitive and comparative
advantage which impacts Foreign Direct Investments (FDI). This leads to port users, most
predominantly end customers paying more for imported goods and commodities, whilst
shippers pay a lot more on port and terminal costs for exports to reach overseas markets.
The reality is that efficient integrated logistics and supply chains are crucial as instruments
of economic growth. Successful execution of infrastructure investment determines how
different transport modes will stimulate economic activity which benefits the region.
The Ports Regulator of South Africa (PRSA), an independent regulatory authority
responsible for the pricing and tariff regulation of port services in South Africa was
established to promote competition and efficiency in the ports sector, protect port users
from abuse of monopoly power, and foster investment in the industry. Mandated by the
Ports Act, PRSA has been instrumental in addressing operational inefficiencies and
ensuring the smooth running of the South African port system. This is done through regular
monitoring of port activities, equity of access, port performance, CAPEX, and OPEX.
This paper aims to pinpoint inefficiencies within the port systems that are actively
operating in the region, identify the causal effects of such inefficiencies and recommend
ways to deal with these ineptitudes.
