Transnet has launched into a course of to check the market for a container terminal at its Richards Bay harbour in KwaZulu-Natal – however enterprise leaders say with out a functioning railway connection the large advantages such a undertaking might unlock is not going to be realised.
The city at the moment has 400 to 500 vehicles driving via its industrial space to the harbour daily. After off-loading they return by the identical route, which ends up in a complete of as much as 1 000 journeys.
This is as a result of the rail service has all however collapsed resulting from cable theft and a bottleneck on the single-line Overvaal tunnel between Vryheid and Ogies.
Read:
Transnet has issued a request for info which will result in a proper procurement course of at a later stage. It has invited proposals from the personal sector for the design, growth, development, financing, operation, upkeep, and eventual switch of the terminal to Transnet.
It proposes that one of many present multi-purpose wharfs be transformed and devoted to container dealing with.
The deadline for submissions is 28 November. Transnet has recognized a particular web site for the terminal, but additionally permits proposals for different websites.
Port of Richards Bay Master Plan at a look
Source: Transnet National Ports Authority, KZN Logistic Hub – Port of Richards Bay Master Plan
Not a brand new concept
Jan Scheepers, CEO of Siyakhuphuka Investment Holdings, submitted an unsolicited proposal for such a terminal in 2008. He believes the terminal may be prepared for operation inside two years, as soon as the procurement is concluded, which might take one other 12 months.
Siyakhuphuka launched a authorized problem after its proposal was rejected, solely for Transnet to announce its personal plans for such a terminal. The state-owned logistics group nonetheless didn’t comply with via with its plans.
Siyakhuphuka requested the court docket to evaluation and put aside Transnet’s choice to reject its unsolicited proposal for the container terminal, however the case was dismissed in September on a technical level.
Scheepers is nonetheless enthusiastic about the truth that Transnet is as soon as once more taking a look at a devoted container terminal in Richards Bay and says Siyakhuphuka will submit a proposal.
“The Transnet [National] Ports Authority has recently started operating much more independently, which has resulted in this initiative,” he says.
Economic revival
In its request for info Transnet says it has up to now obtained quite a few requests from the personal sector for such a container terminal, to serve the demand from KwaZulu-Natal and surrounding provinces.
Currently containers are being dealt with along with different freight on the multi-purpose terminal, however the capability is proscribed. Vessels are more and more greater and deeper as transport firms search economies of scale, and harbour infrastructure should accommodate such modifications.
The request for info is geared toward testing the market for the potential growth of a devoted container terminal.
Read:
Salvation in sight for key ports of Durban and Ngqura
Gordhan needs Transnet to safe R100bn infrastructure funding into SA ports
Transnet eyes Richards Bay port for new liquefied gasoline hub
Mike Patterson, deputy chair of the Zululand Chamber of Commerce and Industry, says a devoted container terminal will imply lots for future growth in Richards Bay and the encompassing space. “If it gets easier to import and export, investments in Zululand will increase,” he says.
He says the agricultural trade, particularly fruit farmers, will profit.
“In the past we had citrus production in the Nkwaleni Valley between Empangeni and Eshowe, and such a facility could result in its revival.”
Patterson says the rail service will nonetheless want pressing consideration.
Rail service a difficulty
Henk Langenhoven, economist at Minerals Council SA, agrees. He says mines are battling to get their product exported via Durban and more and more desire Maputo in Mozambique.
“The rail service to Richards Bay cannot even deal with the pressure now. There is only a single railway line through the Overvaal tunnel, that is why there is a bottleneck. Cable theft is also a huge problem. Last week there was not a single train running as a result.”
Langenhoven says Transnet is at all times speaking about new initiatives as a substitute of fixing present programs. “Harbours are made to receive goods via rail, not from trucks.”
Scheepers says it would take 5 to 10 years to enlarge the Overvaal tunnel and the tonnage doesn’t at the moment justify it.
He doubts it would occur, in gentle of the uncertainty round the way forward for coal.
He does nonetheless see a special resolution.
“The railway line from Johannesburg to Durban passes Dundee. From Dundee there is also a line that runs through Vryheid to Richards Bay that is currently being underutilised. This can be a feeder line to the dedicated container terminal at Richards Bay.”
According to Scheepers conventional mining firms exporting chrome, ferro-chrome and coal are battling to get slots on the multi-purpose terminal in Richards Bay, because of the enhance of coal exports by junior miners.
“A dedicated container terminal will be a good solution for them.”
Read: TNPA board backs R100bn growth plan for KZN ports
