Transnet: Plans for new port at old Durban airport site

[Steve Appleton]

From Business Day, June 15,2011. http://www.businessday.co.za/Articles/C ... ?id=145870

Transnet outlines plan for dig-out port
Transnet to spend R50bn on creating a dig-out port on the site of the old Durban international airport.
LINDA ENSOR
Published: 2011/06/15 06:53:21 AM

CAPE TOWN — Transnet has made provisional long-term plans to spend R50bn on creating a dig-out port on the site of the old Durban international airport which would include more container berths to cater for projected growth in the South African and regional economy.

However, to proceed Transnet would first have to acquire the land from Airports Company SA (Acsa). It has provided R1,5bn for this, group CEO Brian Molefe said yesterday. But since Acsa is understood to want more for the property (R3bn has been mentioned), negotiations would be required.

Mr Molefe said that Transnet’s plans had not been approved by the board and the government, and would only take effect after completion of the current R110,6bn capital expenditure programme in five years’ time, if the parastatal received the go-ahead.

Tau Morwe, CEO of the National Port Authority, said yesterday that the group would appoint advisers in the next month or two to research the building of a new terminal and port in Durban. He said the aim of the port expansion would be to reduce the congestion at Durban port, the main import and export channel for Southern Africa. "Indications are that freight demand in SA is increasing astronomically with economic growth. We expect freight demand will probably double in 10 to 15 years’ time, which is the time by which we will have to have a solution in Durban."

The other option was to use Salisbury Island, a former naval base in the Port of Durban.

Mr Molefe told Parliament’s portfolio committee for public enterprises that the dig-out port — created by excavating land — would be equipped with 16 container berths constructed in four phases and, in later phases, five automotive berths and four bulk liquid berths.

The R50bn — a preliminary, unescalated value — would be the cost of the first phase, which would provide the platform for future expansion. The first phase would consist of four container berths creating 2,4- million TEUs (20-foot equivalent units) of annual capacity, aiming at a capacity at the end of the four phases projected at 9,6-million TEUs.

Transnet has several other major infrastructure projects on the design board, but Mr Molefe said high-level estimates showed that not all the opportunities could be afforded. Alternatives options would be explored, including private funding.