An exploration of the restructuring of port governance and economic regulation in South Africa.

Abstract

Port governance structures and economic regulation are vital to investment, effectiveness, efficiencies, and production. The determining factor is the port management, whether centralized directly under the state as a state-owned entity (SOE), decentralized to local government, or privatized. South Africa has eight commercial ports strategically located along the country’s coastline. Ports facilitate economic growth and recognize the need for an effective and efficient logistics model. Contemporary port reforms dictate that ports either subscribe to a public service port, a tool port, or a landlord port or adopt the public-private partnership approach. However, due to poor management, several governance inefficiencies at the Durban and Cape Town ports have been experienced, triggering operational challenges and negatively impacting economic growth and competitiveness. This study explores the possibility of the restructuring of port governance structure and economic regulation in South Africa. The study uses a qualitative research method. A purposive sampling technique method was followed due to study participants’ industry knowledge and experience. Semi-structured online interviews were conducted for data collection. Due to limited time and resources, only five of the six identified study participants contributed to the study. The data collected was analyzed and coded, and themes were generated using an online thematic analysis tool. Thematic analysis is a method for identifying, analyzing, and reporting patterns (themes) within data collected. The main findings confirmed the need to explore a more effective governance structure model, port pricing, tariff methodology reform, and the need for private sector participation in the marine sector. Therefore, the study recommends that TNPA conduct an assessment and an investigation on amending the legal framework governing ports and the corporatization of NPA for the port regulator of South Africa to focus on regulatory matters that advance port investment and oversight mechanisms. Additionally, the participation of the private sector in the provision of marine services should enhance the economic growth of the region and improve efficiency and competitiveness.