Daily Dispatch

Porttk Widening of EL port entrance just the start of new expansion

After a minor fall of 0.14% on Thursday, the rand has gained in nine out of the past 10 days

- TED KEENAN BUSINESS CORRESPOND­ENT

The biggest challenge with East London’s port becoming a major shipping destinatio­n is its harbour entrance: it is too narrow and shallow for large ocean-going ships, which now sail past, bound for Cape Town, Coega or Durban.

EL port manager Sharon Sijako, who was born in

Mdantsane, said her team had pushed hard for a port expansion and the first phase of widening and deepening the entrance channel was in line with Transnet CEO Portia Derby’s announceme­nt at the recent EC Agricultur­al Indaba that plans were progressin­g with expansion of the port.

“It seems our efforts, backed by Mercedes-benz SA, provincial government, BCM, ELIDZ and the private sector are coming to fruition.

“A wider entrance will not need blasting. It will require extending the existing main breakwall, reposition­ing the Orient Pier and dredging the entrance. The multipurpo­se terminal on the East Bank, where we currently handle containers and general cargo, would then be relocated to the West Bank, where we can easily achieve the required depth.

“It will make it much easier to service the industrial hub, including the ELIDZ.”

The relocation will alleviate congested port traffic now moving through the CBD.

The Port of East London (PEL) handles an average of 120 car carrier vessels a year. It also brings in all the petroleum products destined for the eastern half of Eastern Cape, and areas in the Northern Cape and Free State.

“We are creating additional capacity to the car terminal through upward expansion of the parkade and expanding the terminal footprint. This extra capacity will cater for MBSA’S planned increase in production of the new C-class,” she said.

She said livestock shipping was a growing port commodity and PEL was the only livestock export port, which created economic value and sustainabi­lity for the agricultur­al industry in the Eastern Cape. Although grain export has stopped completely due to soaring local demand, Derby, in her address, said that the Eastern Cape could become SA’S leading producer, which in time would lead to the revitalisa­tion of PEL, which has an underused grain elevator.

“It will,” explained Sijako, “require refurbishm­ent investment because we have mothballed the facility, but once volumes pick up we will be ready. Imported grain is currently discharged directly into trucks and stored at importers’ premises.”

The private sector has shown an investment appetite, particular­ly for private-public partnershi­ps (PPP). Long-term concession­ing would be the way to go for major investment­s allowing for adequate return for investors.

PEL is working on a waterfront developmen­t project, which includes refurbishi­ng Latimer’s Landing and a proposed developmen­t of upmarket residentia­l and multi-use facilities along the upper river.

“We are working with Buffalo City Developmen­t Agency on this, which would be an ideal

PPP project. We have land on the West Bank that can be developed, and we have recently published an expression of interest document for commercial port-related activity. It will need to be compatible with the automotive sector.

“We are encouragin­g companies to set up within the port, using existing facilities such as the dry dock and West Bank slipway. The port is ideal for marine manufactur­ing, boat building, ship recycling and ship repairs.”

Another opportunit­y was using the port’s history, which dates back to the 1840s, to create tourism attraction­s.

Many old buildings and monuments still exist in the area and repairs on the historic clock tower building will be completed in 2021.

East London was a popular destinatio­n for cruise liners before the pandemic.

A committee comprising PEL, BCM, BKCOB and the EC Tourism Board is packaging programmes for tourists. Product owners such as game reserves, township tours, and country pubs have also formed their own subcommitt­ees.

Derby said Transnet was reopening branch lines for private investors in agricultur­al and agri-processing areas.

PEL will be the hub point for these cargoes to be exported. With the planned port expansion, an expanding grain, automotive and agriproduc­e export drive, all augers well for growth of the port and the Eastern Cape.

 ?? IN CHARGE: East London Port manager Sharon Sijako. Picture: MICHAEL PINYANA ??
IN CHARGE: East London Port manager Sharon Sijako. Picture: MICHAEL PINYANA

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