Tackling South Africa’s port challenges

Tackling South Africa’s

port challenges

According to the 8th PwC South Africa Economic Outlook, while there are transient supply chain challenges, South African ports are “beset with operational efficiencies”.

The report further adds: “The recently released World Bank Container Port Performance Index (CPPI) 2021 ranked Durban, Cape Town and Ngqura in the bottom 10 ports out of the 370 locations analysed globally. This is based on the average time spent by a ship in these locations which, in turn, is reflective of factors like the availability and quality of infrastructure, layout of the harbour, and the expertise of the employees, amongst others.”

While the above paints a bleak picture, the report does highlight a level of positivity with respect to the joint initiative by the Presidency and Treasury (Operation Vulindlela) that seeks to create a “competitive and efficient” freight transport system.

“The initiative counts among its successes to date 1) establishing the National Ports Authority as an independent subsidiary of Transnet, 2) finalisation of the White Paper on National Rail Policy, and 3) corporatisation of the Transnet National Ports Authority (TNPA),” the report reads.

Some of the progress and projects by the Transnet National Ports Authority (TNPA) include: • TNPA received board approval for its

R100 billion KwaZulu-Natal Logistics Hub

Programme for the expansion of Durban and

Richards Bay ports. • Goals to reposition Western Region ports to facilitate efficient trade.

• Committing infrastructure investment for

Central Region ports.

Durban and Richards Bay

The programme aims to position the Durban Port as an international container hub that has the capacity to handle 11.4 million TEUs (twenty-foot equivalent units) and an automotive capacity exceeding 900 000 units. Richards Bay Port is being positioned as a dry bulk and Liquified Natural Gas (LNG) hub port.

TNPA has received a greenlight by the board for its R100 billion KwaZulu-Natal Logistics Hub Programme. This follows achieving confirmation from independent experts that both plans are feasible.

TNPA has received a greenlight by the board for its R100 billion KwaZulu-Natal Logistics Hub Programme.

Western region

TNPA aims to strategically reposition its Western Region ports to efficiently facilitate trade enabled by a seven-year R16.1 billion capital investment programme for infrastructure development at the ports of Mossel Bay, Saldanha and Cape Town.

The Western region’s capital investment programme has an allocation of R2.2 billion to the Port of Mossel Bay, R8.4 billion to Saldanha and R5.5 billion to Cape Town over a seven-year period.

According to TNPA Managing Executive for the Western Region, Advocate Phyllis Difeto. “Our capital investment plan demonstrates our commitment to the operationalisation of our Reimagined TNPA operating model that was launched in 2021. We are intentional about prioritising capital projects that will create future capacity whilst not neglecting the immediate needs required to enhance port efficiencies.”

At the Port of Mossel Bay some of the key capital projects include the slipway facility refurbishment and Quay 3 sheet pilling. These key projects form part of the Port of Mossel Bay’s R10.2 million port infrastructure development plan for 2022/23. Projects that are spread across the seven-year

period include the deepening of the port and Quay 4 as well as breakwater extension.

The implementation of capital projects planned for the Port of Saldanha for 2022/23 is already underway, which includes the acquisition of a tugboat, installation of perimeter fencing and provision of bulk power. The broader seven-year programme includes the extension of Berth 205, berth construction of the ore expansion phase 2 as well as the refurbishment of the main breakwater and causeway rock revetment. In the current financial year 2022/23 the Port of Cape Town will see the delivery of a robust R260 million capital programme, comprising the procurement of a helicopter and the replacement of two tugboats. Phase 2 of the Cape Town Container Terminal expansion and the acquisition of ten dry dock cranes form part of the port’s seven-year programme.

Central region ports

A TNPA report stated that a R9.1 billion infrastructure development investment is planned for over a seven-year period for the ports of East London, Port Elizabeth and Ngqura.

In alignment with the Transnet Segment Strategy and the TNPA Reimagined Operating Model, the Central Region ports are being positioned in accordance with critical sectors within the Eastern Cape province ranging from the automotive; liquid bulk; agriculture and tourism sectors.

“We have earmarked the Port of Port Elizabeth for the automotive sector, with in the port of Ngqura being positioned as a trans-shipment and energy hub for the southern hemisphere,” said TNPA Managing Executive for the Central Region, Siyabulela Mhlaluka.

He added that the river port of East London is suited for servicing the broader automotive, industrial and agricultural sectors in the region by enhancing the port’s capability and complementing the East London Industrial Development Zone. The Port of East London’s grain elevator is a key asset to the province, and this has been emphasised by the diversion of some of the agricultural cargo from Durban to the East London port.

According to Mhlaluka, East London is also strategically positioned for the tourism sector, a strategic objective that will be achieved by transforming the port’s real estate portfolio to integrate with the leisure market such as the Latimer’s Landing Waterfront development.

Northern Cape Region

TNPA has called on port and rail developers to respond to its Request for Qualification (RFQ) for the design, funding and construction of planned port and rail infrastructure in the Northern Cape Province. The RFQ is intended to obtain information to shape the final solution as well as identify and select qualifying developers who can undertake the design, funding and construction of a capitalefficient greenfield, deep-water port and associated infrastructure in the Northern Cape Province.

TNPA Programme Director, Magenthran Ruthenavelu said, “The information sought through the RFQ is necessary for TNPA to chart a way forward in line with our strategic objective to operationalise a port in the region by 2026.”

The development of a port in the Northern Cape Province is a first step towards realising the country’s Green Hydrogen Strategy regarded by the Northern Cape Province as an important driver towards a “Just Energy Transition".

Ruthenavelu said: “Over and above the catalytic effect of new port and rail infrastructure to the local economy, the investment could also provide an additional, cost-effective channel to market for manganese exporters in the province. It will bring much-needed relief to emerging miners who are currently restricted by high road transportation costs and no access to current export channels due to capacity constraints.” 