State port operator planning major expansion projects to cope with anticipated rise in South African volumes
South African port operator Transnet Port Terminals (TPT) has announced that it is to invest US$4.3 billion over the next seven years to encourage the economic growth and operational efficiency in its port terminal management. In total, TPT’s parent company, the Transnet Group, will spend a total of $39.1 billion in port and rail capital projects. These investments fall within the Transnet Market Demand Strategy (MDS) recently announced by State President Jacob Zuma in his State of the Nation Address. The bulk of TPT’s funding, 71 percent of the R33 billion seven year investment pipeline, will be focused on expansion projects and creating capacity to meet projected demand. The remaining 29 percent will go towards capital sustaining projects aimed at achieving operating norms and upholding service delivery, including the replacement of aged equipment as well as the refurbishment of existing equipment. “These investments into South Africa’s commercial port operations will continue to provide a springboard for growth,” said TPT CEO, Karl Socikwa. “We will implement specific initiatives to grow volumes and use capacity as it comes on stream, while improving operational efficiencies and growing personnel, thus ensuring the success of the Market Demand Strategy.”Funding for the major capacity creating projects to be embarked on by TPT over the next seven years will include projects in both South Africa’s container sector and bulk sector.
The main projects announced by TPT to enhance the country’s containerized trade include the expansion of the Durban Container Terminal Pier 1, which will increase the capacity of the terminal from 700 000 TEU to 820 000 TEU by next year and eventually 1.2 million TEU by 2016/17. In addition the North quay at Durban Container Terminal Pier 2 will be extended to increase the capacity from 2.1 million TEU in 2011/12 to 2.5 million TEU by 2013/14 and 3.3 million TEU by 2017/18. Container capacity is also being created in other terminals such as the Durban Ro-Ro and Maydon Wharf Terminal through the acquisition of new equipment, including mobile cranes, and various infrastructure upgrades. Furthermore, the capacity of the Ngqura Container Terminal will be increased to 2 million TEU by 2018/19 to meet anticipated volumes. TPT’s capital investment plan for the country’s bulk sector includes the expansion of the iron ore bulk facility in Saldanha to 82mtpa, and an increase in South Africa’s manganese capacity. This will be achieved by relocating the its export facility in Port Elizabeth to a newly created two berth manganese facility at the Port of Ngqura, increasing capacity form 5.5 million tonnes to12 million tonnes by 2016/17. Source: http://www.porttechnology.org/
