Bidvest to invest R100m in Durban port

TERRY HUTSON NEW LEASES worth R33million a year that were signed in Durban last week between Bidfreight and the NPA will result in Bidvest investing R100 million in the port of Durban over the next 6 – 12 months, with further investments likely to follow. That was the word from Bidvest chief executive Brian Joffe and his Bidfreight management team last week when more than 40 old property leases in the Maydon Wharf and Island View areas were consolidated into nine. Work is to commence immediately on taking down a number of old sheds near the Bidfreight Forest Products Terminal on Maydon Wharf 15, which will be replaced with modern warehousing more suited to Bidfreight’s logistical requirements at the port. The announced investment became possible only because the new leases bring security of tenure, says Anthony Dawe, Bidfreight Terminals MD. He told FTW the leases were for periods of 20 years but all had renewal option clauses and were based on market related rates. “The new leases will cost Bidfreight R33m a year which is considerably higher than before but will allow us to consolidate and improve our properties along this sector of Maydon Wharf and elsewhere in the port.” Dawe said the new leases included an option to negotiate the handling of additional or new commodities at its terminals in line with changing market conditions and trends - a factor that was never available previously. “For example whenever we wanted to handle rice the answer was always no because rice was not included in our bulk terminal leases.” Bidfreight’s coal terminal at the Bluff is not included in the leases and is subject to separate negotiations. NPA acting CEO Khomotso Phihlela said the next five years would see the NPA spending in the region of R13.8bn on port infrastructure, of which almost half – R6.5bn – would be in the port of Durban.