Coega talks with P&O Nedlloyd collapse

TERRY HUTSON P&O Nedlloyd’s status as the preferred bidder for the Coega Container Terminal has been terminated following a breakdown in talks between the shipping company and the National Ports Authority (NPA). As a result the container terminal will go back on public tender just as soon as the government has finalised its national ports strategy, says the Department of Public Enterprises. According to the DPE, fundamental issues surrounding the terms of the concession between the CEDECO consortium consisting of P&O Nedlloyd and TCI Infrastructure remained unresolved, making it impossible for the negotiations to continue. These issues fell outside the jurisdiction of both the NPA and the Coega Development Corporation and would require policy intervention including possible subsidies by the government to resolve. Public Enterprises minister Alec Erwin said he supported the cancellation of the agreement but remained optimistic about the Coega container terminal concession. “A tender will be advertised once the above process is complete and all interested parties, including the CEDECO consortium will be invited to bid.” In October 2000 P&O Nedlloyd signed an agreement with the Coega Development Corporation identifying them as the preferred bidder for the 500000 TEU container terminal, which is nearing completion. Last week the deepwater basin was opened to the sea for the first time and the first container ship is expected by mid 2005.