Ports Authority aims to help grow economy
PORT contributions to the ocean economy economy was brought under the spotlight at the World Maritime Day Parallel Event this week.
The three-day conference, which ended on Friday, was held under the International Maritime Organisation at the Inkosi Albert Luthuli International Convention Centre, in Durban.
It saw at least 178 International Maritime Organisation member state delegates convene to discuss innovative solutions aimed at improving the maritime sector worldwide, under the theme “New Technologies for Greener Shipping”.
Mossel Bay port manager Dr Dineo Mazibuko of the Transnet National Ports Authority, highlighted the importance of the freight business within the economy.
Road freight was noted as the largest sub-sector within the transport sector, accounting for almost 80% of freight payload income. Rail’s income per ton was R2 173 in comparison to a road income per ton of R1 999.
Mazibuko said the freight business required significant investment as it was seen as a critical component of the value chain, especially in lowering the cost of doing business.
“For the period between 2012 and 2021, some of the sectors that have shown significant growth relate to the manufacturing sector and the finance sector, including the general government.
“While the transport sector is showing a growth of 0.4%, it has contributed quite a lot, which shows that there is a role that the transport sector is playing within the economy and it contributed around R333 million which is a market share of almost around 7.9%,” she said.
Over 293 399 499 tons of cargo was moved in the past financial year. Almost 7 194 vessels were moved in the past financial year, with dry bulk carriers taking the biggest market share of almost 38%, followed by container carriers with almost 23% and liquid bulk carriers with 22%.
Mazibuko said that as part of the Port Authority’s aim of growing the ocean economy, strategic initiatives were devised in alignment with the theme.
These included repositioning the Port of Durban as an international container hub to improve maritime connectivity and Richards Bay as a dry and liquid bulk port. The ports would be reconfigured to accommodate new-generation vessels and create capacity for liquid natural gas products and infrastructure.
Some of the projects Transnet would be embarking on – from a cargo perspective within the Port of Durban – included expanding the Bayhead terminal to cater for more automotives and upgrading Bayhead and Langeberg roads. It was also considering deepening and widening the entrance channel entrance from 220m to 300m to accommodate bigger vessels.
Oceans Economy Consulting managing director Noxolo Ncayo, speaking on the ocean economy value chain, noted that in March 2014 the Cabinet approved the piloting of the Malaysian Big Fast Results methodology, to be known in South Africa as Operation Phakisa.
“Since the year 2011, the South African government spearheaded a renewed focus on the development of South Africa’s ocean economy, with recognition given to various priority programmes for high-potential sectors,” Ncayo said.
This effort culminated into launching the Operation Phakisa programme in 2014,” she said.