The Namibia Ports Authority (Namport) has announced that it will commence with the process of the proposed concession of the new container terminal in Walvis Bay to an independent operator.
Concessioning is the process in which a public sector owned asset is availed for operation and management by the private sector for a defined period of time at a fee and undertakings of mutually set investment upgrades.
Addressing a media briefing at Walvis Bay on Thursday, NamPort Chief Executive Officer Andrew Kanime said the decision came as a result of the current dynamics in the shipping industry, which have significantly shifted.
“Due to depressed macro-economic conditions which negatively impacted industries across all sectors with attendant decreases in imports and export handled through Namibia and other ports, shipping lines have moved to larger size vessel deployment as part of their own drive towards cost rationalisation. The cumulative effect of these unforeseen and unfortunate developments has been a significant decrease in the volumes throughput through the new container terminal with a current handling capacity of 750 000 Twenty-foot Equivalent Unit (TEUs),” Kanime noted.
According to the CEO the operator, which is globally credible and established, will be expected to among others generate sustainable volumes, whereas Namport will expect them to consolidate and help facilitate organic growth of transhipment and domestic volumes.
He informed the gathering that the matter of shortage of vessels, blank sailings and lack of sufficient containers is lately of grave concern to the industry, with no immediate end in sight. The concession, therefore, represents a bold step by Namport and Namibia towards increasing the vessel calls through the port of Walvis Bay and ultimately providing stability, certainty and capacity for growth of both local and regional cargo.
“The operator will also be required to maintain or better the current terms and conditions of the employment for personnel who are currently deployed to container handling operations. They will further need to provide an undertaking to guarantee employment of the personnel taken over for a minimum period,” Kanime emphasised.
Employees, he said, have been consulted and they have expressed excitement with the project.
He indicated that the port’s five companies which are part of the top globally renowned entities, have so far expressed interest and will be moved onto the next stage of the procurement, which is a request for proposals.
The CEO noted that the finalisation of the entire process is envisioned for the end of 2022 and that the operator is expected on board by January 2023.
Source: The Namibian Press Agency
