After two and a half years
of heavy negotiations
with Transnet National
Ports Authority (TNPA), a
multi-million rand project
proposed by Dutch-based
Universal Africa Lines
(UAL) has finally been
strangled by bureaucratic
red tape.
The scheme was to
develop an oil and gas
shipping supply hub at
Saldanha Bay to serve
the line’s interests up the
African west and east
coasts.
In 2010, when the strategy
was first conceived, the line
arranged a three-year time
charter of the UAL Cape
Town – a 12 500-tonne
deadweight (dwt) vessel
with dual deck cranes and a
combined lifting capacity of
160t. This was deployed on
a monthly service to supply
West African oil and gas
exploration and production
bases from SA.
The service mainly
shipped specialist
equipment and supplies to
the oil and gas exploration
and production industries
along the West African
coast. But, as a conventional
carrier, it also shipped a
variety of breakbulk and
containerised cargo.
South Africa, according
to Roger Jungblut, chairman
of the UAL Alliance and
CEO of the SA operation,
was the preferred hub
for the operation, thanks
mainly to it being an
increasingly important
source of supplies and
services to support the
“bustling activity in the
West African oil theatre” –
which produces around five
to six million barrels a day,
or about 15% of the world’s
crude oil supply.
Jungblut added that the
SA manufacturing, mining,
engineering, agricultural,
building and construction
industries were all in a
good position to serve West
Africa.
But, at about this time
last year, and after 16
months of negotiations
achieving no result, UAL
finally ran out of patience.
The attempts to develop
this vital hub operation at
Saldanha had met with an
uncooperative response
from TNPA – and UAL
cancelled the proposed deal
with the port authorities.
But TNPA chief
executive, Tau Morwe, then
became personally involved,
and following further
discussions, UAL decided
to reconsider its decision to
withdraw.
“We spent another lot
of time talking to TNPA,”
Jungblut told FTW last
Friday, “but they didn’t
seem to understand the
commercial basis we work
on – where timelines have
to be fast.
“We were so buried in
TNPA regulations and
procedures we could get
no further forward. So
the final conclusion two
weeks ago was that we were
finished with the Saldanha
supply base, and we are
concentrating now on other
projects.
INSERT
‘TNPA didn’t seem
to understand the
commercial basis
we work on – where
timelines have to be
fast.’
