More clarity sought on East London harbour upgrade
With various sums of money having been linked to the planned infrastructure upgrade, stakeholders are calling for answers from the authorities
The Border-kei Chamber of Business (BKCOB) has applauded Transnet National Port Authority’s (TNPA) plan to pump R4.3bn into East London’s harbour, the only river port in the country.
“As the chamber, we are excited about this announcement, but we need to take a step back and look at history,” executive director Lizelle Maurice said.
The chamber had a few questions that begged answers before any celebrations started.
“That the port is ripe for upgrading, and has been for ages, is not in question, but as the business community, we would like clarity on the projects.
“The main question surrounds the quantum. The latest number, announced last week, is R4.3bn. This was for infrastructure over the next seven years.
“Last year, there was a report of R1bn-plus for [ship] building, announced by the premier of East Cape, Oscar Mabuyane.
“Before that, we were told that R13bn was needed to deepen and widen the entrance.
“Is the R4.3bn ” , she wanted to know, “fresh money or does it form part of the previously announced lump sums, now totalling nearly R19bn, but with little to show for it, aside from the upgrading of the dry dock?
“Whatever the amount, BKCOB members, and in fact East London people, need to know details of the way ahead.
“What is the strategy? Where does TNPA start? What are the low-hanging development fruits that will be first to get done.”
Automotive Industry Development Centre Eastern Cape’s CEO Thabo Shenxane said their stakeholders (Eastern Cape automakers, which account for over 60% of SA vehicles and parts suppliers) had been lobbying for infrastructural investment and improved operational (port) efficiencies for some time.
“Automotive growth and exports, which involves an extended manufacturing value chain, is core to transformation, localisation and job creation in the province.”
He said the development of East London’s port would encourage Mercedes-benz to cater for the growth of its exports and its regional supply cluster.
This growth remains critical to the region’s attainment of the SA Automotive Masterplan targets, set by the government for 2035, which includes transformation and job creation. Another concern surrounds long-term ownership of developments, particularly new and refurbished residential projects.
There is a great opportunity to inject much-needed private money into the port from companies that want to develop and own the development.
However, at a presentation in East London last week, TNPA central region (East London, Gqeberha and Ngqura harbours) management team said the port would not sell land.
“But why not,” asked Maurice, “Cape Town sold the land that is now the V&A.”
V&A head of communications Donald Kau said the difference was that Transnet did not own the V&A land. It was sold over a decade ago and is now jointly owned by Public Investment Corporation and Growthpoint.
“How could East London [which is owned by Transnet] allow privately owned properties?
“It would need a conversation at national government level. I assume that their operating and ownership models would be quite different to that of the private sector players, such as V&A.”
To get immediate buy-in from business Maurice suggests a top-level meeting with all the players from Transnet and TPNA.
“I am hoping that local businesses will get the first bite of development work.
“We don’t want to see companies from outside the province getting all the development work; it must be kept in our area.”
Peter Sahd, commodore of Buffalo River Yacht Club and spokesperson for East London port tenants, said they were edging towards an understanding with the port.
This on the back of threats dating back to May 25 that all property tenants had to retender for their leases, without any commitment to compensate them for improvements.
“Though we have nothing in writing, we were advised by Anthony Nqcezula, general manager for commercial services, that all our contracts were being re-evaluated and that the immediate notice to re-tender was being changed.
“There was talk of a 30-year occupancy clause which our members consider fair, but again we need something in writing.”
Maurice said: “People are understandably enthusiastic about the announcement and rollout.
“We assume TNPA must have a detailed plan for spending R4.3bn. All we want now is the where, when, what and how.”