CT terminal upgrade delayed for a year

Like it or not, and no one will, but Cape Town Container Terminal’s R4.5 billion facelift will not be a reality by 2012. The upgrade has been delayed by up to a year due to economic pressures and the resultant need to spend money expeditiously. This first revelation will come as a shock to the shipping industry but it comes straight from the horse’s mouth – Cape Town NPA port manager, Sanjay Govan, who says all will probably be done and dusted during the latter half of 2013. He is not about to enter into fine detail, but FTW understands the delay has much to do with ongoing negotiations for more favourable, project-related rates. Govan jokingly suggests, in reflecting on the port’s performance last year, that while some may consider NPA spending on the frugal side, he believes they have done extremely well in their cost-cutting initiatives. “The disappointment was in sectors beyond our control – higher costs related to electricity, water, rates and repairs and maintenance, the latter through the roof in some instances, but we have not exceeded our budget, which has more or less balanced out.” A year ago Govan predicted volume-generated revenues would be down at least 10% but it has in fact been about 6% for the nine months to December. Shipping customers have been incapacitated for some years by the massive terminal upgrade which has taken 25% out of major berthing capacity at any given time. First came quay wall construction and installation of new Liebherr super post-panamax cranes at Berth 601; 602 is currently under way in likewise fashion and the remaining two berths will follow in the run-up to what was to have been 2012. “The flipside to not having all four berths functional is that turnabout times at 601 have improved. “The terminal was never designed to handle all four berths simultaneously as ships have tended to arrive in staggered format. “Only when we have factors like inclement weather do vessels bunch up and put pressure on all four berths, but the loss of one berth is compensated by the gains effected by the new equipment.” The MPT has alleviated much pressure on the container terminal through accommodating up to two smaller – around 2 000 TEU – vessels at a time. Govan says the lines remain very concerned at the high cost of wind-related hold-ups and while by no means a fait accompli, the possibility exists cargo may be diverted to other ports in future.