Business to fight Transnet's investment moratorium

EAST LONDON business is not meekly accepting Transnet’s decision to put a five-year moratorium on investment in the port and rail links, says Border Kei Chamber of business executive director Les Holbrook. “We have been told that all Transnet’s reserves and cash are already tied up.” This was confirmed to FTW by Transnet Port Terminals chief executive Tau Morwe recently. “We as business in East London do not accept that decision. Investors have to have a reason to come to East London and the upgrading of the port is key to attracting investment,” he says. According to Holbrook, foreign funders are waiting for Transnet to loosen its stranglehold on the local infrastructure. He says business is not impressed with a R4.5-million feasibility study commissioned by Transnet into possible future investment in the port and rail links. “This is just a stalling tactic,” he says. Business is working with the local Buffalo City metro to put political and other pressure on Transnet and central government to either find the money or hand the projects over to private public partnerships. The precedent has already been set with the Kei rail link between East London and Mthatha. The project is fully funded by the provincial government after Transnet decided not to invest. Holbrook says business would rather see the East London port upgraded than investment in rail links to Port Elizabeth or Durban. "Having to transport containers to Durban and PE is an additional cost industry does not wish for itself. This is not to mention the havoc that the railways authorities create by opening up containers and then leaving the importer to repack their own containers," he says.