Absence of anchor tenant adds R1bn to Coega costs

Port now 90% complete TERRY HUTSON THE COST of building the port of Ngqura in the Eastern Cape has escalated beyond the original estimate of R3.2bn and is now forecast to cost R4.1bn, says Chris Matchett, resident engineer overseeing the project for the National Ports Authority. Matchett said the overspend was a result of the NPA having to finance all terminal construction itself because an anchor tenant for the terminals could not be found. All terminal operations at the port will now be in the hands of SA Port Operations. “The port was originally designed along the lines of a PPP (public private project) and BOOT (Build-Own-Operate-Transfer), utilising outside finance for the terminals, but as you know this is not how it happened.” He said the amount of R4.1bn would cover the original Phase 1 of the port development, which is now about 90% complete. All dredging has been completed and landside work and the sand bypass system will be finished by the end of this financial year. Outstanding work includes the provision of two tugs, a tug basin, port control building, an entrance plaza and remaining landside detail. So far an amount of R2.6bn has been expended. An additional R800m is required for Phase 1B but awaits approval. In the meantime Sapo is gearing up to assume operational control of the new container and bulk terminals before the first operational ship docks in about 24 months time. It is making recommendations to the Transnet board regarding the method of container handling ahead of ordering cargo handling equipment including shoreside gantry cranes. A decision has also to be taken on whether to use rubber-tyred gantries or a straddle carrier operation.