Transnet National Ports Authority (TNPA) has announced plans to consolidate its various corporate offices into one at the eMendi administration building, Port of Ngqura, in Port Elizabeth, by the end of March.
The State-owned entity currently has corporate offices split between Johannesburg and Durban.
The consolidation forms part of the Transnet group’s ongoing cost-saving and efficiency initiatives.
The relocation of a Sea Port Authority’s head office from a landlocked city, closer to its operations, ensures that TNPA serves its customers at the point of execution, while bringing about savings of about R25-million a year from lease agreements, TNPA states.
"It bears reiterating that the strategic decision for the head office of TNPA to locate to one of the South Africa’s ports dates back over ten years, when the decision was not implemented for reasons unrelated to the interests of the port authority and/or its customers."
The 10 000 m2 eMendi building, completed at a cost of R255-million in 2017, is currently underutilised, yet has the opportunity to significantly deliver cost-savings for Transnet.
The eMendi building is currently being reconfigured into a layout suitable for accommodating the TNPA head office resources.
TNPA operations are spread over three coastal regions: KwaZulu-Natal, the Eastern Cape and the Western Cape.
The Eastern Cape is centrally located between the KwaZulu-Natal and Western Cape regions, and hosts three of the eight commercial sea ports operated by TNPA.
Transnet sees the consolidation of TNPA in the Eastern Cape as an important contributor to the revival of that province’s economy, as it increases the ease of doing business.
Among other things, TNPA facilities in Port Elizabeth have contributed to record citrus exports in the past year, and shown encouraging growth in the export of motor vehicles from Eastern Cape assembly plants.
Transnet has embarked on a consultation process with staff and organised labour, with a view to completing the move by March 31.