Durban port expansion plan gets approval
TRANSNET National Ports Authority (TNPA) KwaZulu-Natal port expansion plans have received the green light from the state entity’s board.
TNPA said this week that the approval process set in motion subsequent governance processes to be undertaken, which include the promulgation process, as stipulated by the National Ports Act of 2005.
It said the expansion plans formed part of the more than R100 billion KZN Logistics Hub Programme, which seeks to position the Durban Port as an international container hub that will boast an increased container capacity of 11.4 million TEUs (twenty-foot equivalent units) and automotive capacity exceeding 900 000 units.
The Richards Bay Port is being positioned as a dry bulk hub port and the plans are also aligned to the Department of Mineral Resources and Energy’s strategic plan, which feature a new berth for handling Liquefied Natural Gas (LNG) as a cleaner alternative to coal for power generation.
“Some of the dry bulk terminals and mineral-handling facilities are also earmarked for relocation from the Port of Durban’s Island View and Maydon Wharf Precincts to the Port of Richards Bay.”
United National Transport Union general secretary Cobus van Vuuren said it welcomed the expansion plan.
“This will be an opportunity to create more job opportunities for unemployed South Africans. However, we hope this process will have no negative effect on employees at Transnet.”
Van Vuuren added that the union hoped Transnet was not taking a loan to finance the project.
“Transnet is in financial trouble and we wouldn’t want to see them taking a loan and digging themselves into further debt, as this could have an impact on the employees of Transnet and lead to more strain on operations.”
Professor Irrshad Kaseeram, of the University of Zululand Economics Department, said the port, together with the access infrastructure inland via rail and road, comprised a critical conduit to the global value chain that must operate efficiently for the country to be internationally competitive.
He said efficient performance encompassed multiple factors.
“Transport and logistic experts have pointed out that these include the efficiency of the port inclusive of the availability of sufficient draught, quay and dock facilities, the quality of the connections to road and rail services, the competitiveness of those services, and the efficacy of the procedures employed by the public agencies involved in container clearance.
“Inefficiencies or non-tariff barriers in any of these factors will result in higher costs, lower competitiveness, and weaker trade.”
Road Freight Association CEO Gavin Kelly has previously pointed out that the April floods had shown how vulnerable the access points to the port were, and that there were no alternatives should similar events recur.