STRATEGIC SHIFT
“TNPA appointed the service provider to undertake pre-feasibility studies for both the base and satellite station to enable the construction of the South African Navy Base project at the Port of Richards Bay,” said TNPA on Monday.
It is reported that pre-feasibility studies will include preliminary engineering work for the base, satellite station, and residential facility in the Port of Richards Bay.
The proposed move has been welcomed by economists, who believe the project could inject billions into the City of uMhlathuze together with potential employment and business opportunities, as well as skills development, particularly for those in the maritime space.
Local economist Professor Irrshad Kaseeram said, depending on the investment value and how much will be sourced locally, the long-term benefits will be significant.
“If we are talking about an estimated R9-billion investment for the project, we are looking at about a R4-billion yearly injection into the City of uMhlathuze,” said Kaseeram.
“It’s fuel, food, utilities such as water, electricity, the possibility of accommodation, and entertainment spend when they are off-duty - all of it adding value to the local economy.
“If equipment will be sourced externally and locally, there’s an opportunity for businesses, as well as engineers who could also provide equipment maintenance,” he added.
Kaseeram said over and above the protection of marine resources and overall security that the navy provides, there is also the potential for humanitarian aid and disaster relief support that could greatly benefit local communities.
Skills development
It further opens up opportunities for local institutions of higher learning to introduce studies aligned to this field.
According to Vincent Zulu, an economist and chief executive of Code84 management consulting firm, there is expected bulk infrastructure spending that will create local jobs during the construction and set-up of the naval base. “Jobs will include, among others, engineering, construction and maritime law.
“Training institutions can also offer support services to the sectors that come to the new host city, and local schools can begin to offer maritime subjects, which will attract even more companies to relocate because they will then be able to find the skills they need,” he said. “This could result in increased research which, in turn, could support the growth of the local industries.”
The relocation project is one of more than 30 mega projects that constitute the KZN Logistics Hub Programme.
Last February, Dr Bridgette Gasa-Toboti, portfolio director for the KZN Logistics Hub (KZN-LH) Programme said, “Projects of this nature are quite complex, and require a lot of finesse and sensitivity in the delivery approach. Precisely because the SA Navy relocation project touches on the safety of our republic, we have had to ensure all key and strategic partners are fully on board.”