Durban, 11 August 2022

The launch of the Maritime Industry Transport Development Task Force Network (Network), which aims to encourage private sector participation in teaming up to propel the industry toward growth and economic development, took place yesterday.

The recently built cruise terminal in the Port of Durban served as the official launch location for the program, which has the support of the Department of Transportation. Mthunzi Madiya, the Department of Transport’s Deputy Director General, applauds the initiative and is confident that it will help the sector overcome many of its difficulties. “Today’s event demonstrates that Government is prepared for and welcomes Public Private Partnerships (PPPs),” Mr Madiya said.

In his speech at the launch, Maharaj emphasized the value of maritime transportation to the nation considering its crucial role in the importation of goods like crude oil.

Operation Phakisa in 2014, the Comprehensive Maritime Transport Policy in 2016, the Oceans Economy Master Plan in 2021, and the African Maritime Charter in 2009 were just a few of the initiatives that Maharaj said had been made to jump-start the oceans economy.

“All these initiatives were characterised by one common thread. They were led by the government with private sector participation at varying degrees,” he said.

“Due to changes in leadership within government, changes in managers, adherence to bureaucratic and stifling governance procedures, progress on these matters has either been frustratingly slow or in some cases, zero achievement has been made. The private sector views this as another string of broken promises by the government.

“As a result, stakeholder commitment and enthusiasm for initiatives, especially from the private sector, has dwindled. There is no more trust and belief that the government can unlock the full potential of the Oceans Economy,” said Maharaj.

According to the COE of Sandock Austral Shipyards, this network driven by the private sector will need all “to work closely together to leverage each other’s strengths and resources for the mutual benefit of all stakeholders”.

“Task Force means we are very task oriented. We will identify tasks that are impediments to the growth and efficiency of the maritime transport economy and ensure solutions are implemented on time and within reasonable costs,” Maharaj said.

With clear goals and objectives stated while making sure that all investments produce quantifiable benefits, time and costs will be the driving forces in the interaction between the private sector and the government.

“Take for example the huge shortage of various commodities due to the Ukraine and Russia war. If our Transport Networks were in place, we could have easily stepped in and filled the void. We have lost out on billions of dollars in potential GDP and hundreds of millions of dollars in tax revenues to the fiscus. Government must realise that by always wanting to take charge, it’s losing billions of dollars in GDP and tax revenue and not alleviating its triple challenges of poverty, unemployment, and inequality. Rather play a supportive role in creating an enabling environment for the private sector to thrive,” he said, adding that the private sector must refrain from complaining from the sidelines and become actively involved in finding the right solutions.

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Maharaj observed that because of the uncertainties in the world, South Africa had a wealth of economic prospects, but the nation was not prepared to seize them.

The elimination of the industry’s pervasive “silo mentality,” according to Maharaj, would be a key component of the Network’s purpose.

“This mentality of turf protection, self-interests, and egos is not what this country needs to reach its full potential.  We cannot continue to just pay lip service year in and year out. We cannot be insane by doing the same things and expecting new results,” Mr. Prasheen Maharaj said in closing.

Image: Sourced