Over the next five years, the Port of Saldanha will present investors with investment opportunities in excess of R13 billion.

Feasibility studies are already underway to this end, and the first contract will be put out to tender by end-2015 as Transnet National Ports Authority (TNPA) prepares to call on the private sector to join it in turning the port’s economic potential into reality.

These were among the announcements made at the Accelerate Cape Town’s July Thought Leadership session on the Cape’s unique global position of three ports (Saldanha, Cape Town and Cape Town International Airport) serving a single city.

Nico Walters, general manager of strategy at Transnet National Ports Authority (TNPA), told the audience: “As a state-owned entity – and with all the other priorities that government faces – we have realised that we can no longer invest in everything. As a result we are inviting the private sector, including foreign investors, to invest in the initiatives planned for the Port of Saldanha. The R13 billion is made up of three key projects, namely an offshore oil and gas supply base; dedicated rig repair berth; and an extension to the old Mossgas repair jetty.”

Ports as levers of growth

In addressing the business leaders at the event, Tim Harris, CEO of Wesgro, welcomed the TNPA announcement as one that would strengthen the Cape’s position as a key business destination in Africa.

Describing ports as levers of growth, Harris acknowledged the TNPA’s collaborative approach with the private sector to help establish the region as a major transport and logistics hub.

In speaking of the potential, he said: “Already, 54 out of 98 (almost 59%) of the international companies that have invested in Cape Town have done so to access the African market. Exports from the Western Cape totaled R74.87 billion in 2013, an increase of 16%, while Western Cape ports – including Cape Town, Saldanha and Mossel Bay – handle 20% to 30% (5,904 tonnes in February 2014) of the cargo in South Africa.”

Fourteen large companies based within the Cape metropolitan region have collective annual revenue of $52 billion. Within Africa, this positions Cape Town second only to Johannesburg in terms of the number of large companies and associated revenues.

“The Cape is an attractive business destination for many reasons, including that it has the fifth lowest logistics – and the lowest oil and gas – operating costs compared to its peers. Airports Company of South Africa (ACSA’s) plans for an aerotropolis will unlock further growth as we work to connect the ports and optimise these state assets for the economic benefit of the people of Cape Town,” added Harris.

Source: Bizcommunity