UPGRADING OF CITY PORT ON THE CARDS
Transnet committed to making the metro a vibrant area again
Plans to develop a waterfront on the East London Esplanade, and expand the car terminal at the East London harbour to accommodate the needs of the new C-class Mercedes-Benz, are at an advanced stage.
Buffalo City mayor Xola Pakati made the announcement on Tuesday, following a meeting with senior Transnet officials.
Accounting officers of the metro, Transnet and the East London Industrial Development Zone (IDZ) signed a memorandum of understanding (MOU), as the programme to revamp the capacity of the East London port and revive the rail network becomes a reality.
Transnet National Ports Authority acting CEO Nozipho Mdawe said in the short term the MOU would entail widening the entrance of the port, deepening the berth and establishing sub-committees that would study tourism, infrastructure and business.
Mercedes-Benz SA announced late in 2018 a new investment of R10bn to significantly expand the C-Class (W206) production plant and equip it for the future. East London is the manufacturing base for the C-Class, the top seller of the brand.
Pakati said the memo served as a guide on how they would engage one another on the project aimed at developing the port and reviving “branches” in the rail network.
It is the first time that the three key stakeholders have announced a clear plan on these major projects which will help create thousands of direct and indirect jobs, and boost the metro’s economic potential.
Pakati admitted to the Dispatch on Tuesday that the port hadn’t seen any real investment in more than 50 years.
Pakati said key initiatives being taken into serious consideration, included:
The deepening and expansion of the port entrance channel for larger vessels;
The development of a fullyfledged waterfront;
Expansion of the car terminal to accommodate the needs of the new W206;
Infrastructure to expand cruise ship tourism; and
Improved rail connectivity to Gauteng and Botswana to increase export volumes through the port.
Mdawe said the authority sought to attract local and foreign investors with the IDZ and would also extend its capabilities in the automotive, manufacturing and agro-processing industries.
Transnet board chairperson Ramasela Ganda said Transnet was committed to making East London a vibrant city again, and would also help the city arrest skilled labour migration to other metros.
Les Holbrook of the BorderKei Chamber of Business said improving the port’s capacity and extending linkages to the port was long overdue.
“We want to be able to connect our exports (directly) to the rest of the world. We want the board to listen to business and we want you to be 100% behind management of East London,” he said.
Pakati said the initiative was also a commitment to focusing particularly on the development of East London. “We’re working with Transnet to ensure that there are improvements happening on (port and rail) logistics. When we improve logistics, we reduce the cost of doing business,” he said.
Queried about budgets and figures, Pakati said he wouldn’t discuss “rands and cents” as those details were to be sorted out through internal budget processes.
The mayor said the MOU had to be viewed as “a starting point of new beginnings, a new dawn so to say”.
The MOU (is a) starting point of new beginnings, a new dawn so to say