Containers get preference in Durban's R1,34bn upgrade plan

23 Feb 2001 - By Staff reporter

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Terry Hutson

SOUTH AFRICA'S minister for public enterprises, Jeff Radebe, last week confirmed a major redevelopment of the Port of Durban, where work on reconfiguring the port would start immediately.
Radebe's announcement brought to an end speculation about the future of the port by confirming Durban's role as the premier container terminal in South Africa.
The recent reconfiguration of the Transnet pension fund has created an opportunity for state-owned entities in the Transnet stable to invest in critical public infrastructure that was previously under-capitalised as a result of the large debt overhang. This is the first capital investment made since the advent of containerisation in South Africa in 1977, when the terminal was first commissioned.
The minister said that this announcement, together with the recent statement about reducing wharfage from April 1, 2001, was part of government's overall strategy of ensuring a reduction in the cost of doing business in SA.
The R1.34 billion capital investment in the port would lead to higher capacity at the container terminal and would also involve the conversion of the multi-purpose (combi) terminal into a container terminal. Effectively this means there will be a reduction in the port's total breakbulk handling capacity.
Radebe said the government hoped to see significant and meaningful black economic empowerment opportunities emerging, adding that there were opportunities for black entrepreneurs to be involved in port construction as the harbour is deepened and some of the activities relocated.
The focus on containerisation and the stimulation of back-of-ports logistics has the potential to develop black entrepreneurs in the relatively new field of logistics management. We have already spoken to the Singapore government to assist us in exposing our black entrepreneurs to this new field of endeavour.
See also pages 6&7