spotlight: South Africa
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NEW PL ANS GIVE PORTS A BOOST Ambitious plans are afoot to upgrade the South African port of Durban at an estimated cost of $7bn as the government seeks to boost its performance, while projects are also underway in other South African ports to improve facilities.
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ccording to South African president Cyril Ramaphosa, the government is looking for private sector involvement in the plans to expand the port of Durban, with the aim of promoting it as a driver of economic growth for southern Africa. Getting involvement from the private sector is seen as key in attracting new investment, upgrading technology and modernising port equipment and infrastructure. A private sector company is expected to be involved in a buildand-operate scheme for a new terminal at the port. Port projects are expected to include dragging the Maydon Wharf channel in order to accommodate larger vessels. Congestion at the port has been an issue in recent times, leading to delays in getting ships alongside the berth, as well as equipment maintenance issues. In June, President Ramaphosa announced the incorporation of the Transnet National Ports Authority (TNPA) as an independent subsidiary of stateowned Transnet SOC. As local law firm Bowmans explains: “The National Ports Act of 2005
envisages an independent national ports authority, as landlord of South Africa’s commercial shipping ports and responsible for providing port services and facilities. Until now, however, TNPA has been operated as a division of Transnet contrary to the provisions of the Act, which required TNPA to be corporatised ‘as soon as [the Act] takes effect’.” This has led to difficulties in interpreting certain sections of the Act, public perceptions of bias by TNPA in favour of other divisions of Transnet and challenges for organisations such as the Ports Regulator of South Africa to carry out its mandate, the law firm said recently. “This change represents an important step forward in ensuring South Africa’s commercial ports continue to provide globally competitive services and facilities,” says Andrew Pike, head of Bowmans’ Ports, Transport and Logistics Sector. “We hope that these reforms will enhance port efficiency, competition, turnaround times and provide a better commercial experience for all port users, including shipowners and charterers.”
Richards bay revamp
Meanwhile, the Port of Richards Bay is to undergo an transformation with a number of dry bulk and LNG operations set to relocate from Durban. The Richards Bay port plan seeks to generate thousands of jobs in the energy and shipping sectors over the next 10-year period as the government seeks to position Durban as a container hub for the region. By transferring dry bulk and LNG activity to Richards Bay, the government is hoping to free up space in Durban for container activity. Richards Bay is set to be used to support Transnet’s natural gas strategy going forward, by providing storage and import facilities. The port of Richards Bay, which lies 160km north of the port of Durban, is a strategic industrial port, responsible for exporting commodities such as coal, chrome and magnetite and has been identified as a promising centre for the relocation of liquid bulk business. Richards Bay is already a key port for coal exports from South Africa. Transnet has said that it plans to maintain coal export targets as it works to shift its
BULK TERMINALS
international | SUMMER 2021
