Eastern Cape – a tale of three ports

While the ports of Ngqura and Port Elizabeth are among the most efficient on the African continent and are promoted as possible alternatives to Durban, cargo is effectively left stranded on the quayside because of a lack of a cost-effective rail link to the hinterland. That leaves importers and importers having to rely on road. This disconnect between the two divisions is despite the Transnet ports trying hard to woo the Eastern Cape through regular high-level visits and briefings for business and political leaders. Executives from Transnet Port Terminals have a good story to tell – on several levels. Transnet National Ports Authority (TNPA) is investing R20.116 billion – or 31% of its seven-year budget in the Eastern Cape, according to TNPA chief executive Tau Morwe. In addition, Transnet Port Terminals (TPT) will be investing R6.7 bn in the Eastern Cape ports, according to TPT chief executive officer Karl Socikwa. To put that in context, the TPT budget for Richards Bay is R12.4 bn, Saldanha R5.82 bn, and Durban 6.7 bn. The TPT budget for Cape Town is R465 million. Business and the political leadership in the eastern half of the province are pushing for more investment in the port of East London. According to Socikwa, TPT plans to invest R300 million in a new coal terminal for the port, while TNPA will be extending the breakwater and deepening the entrance channel – mainly to handle exports of coal from Elitheni in the Eastern Cape. The proposed position of the coal terminal is next to the Mercedes Benz export plant, and there are concerns around dust fallout affecting quality. When questioned about the relative lack of investment in East London during an Eastern Cape Maritime seminar held in Port Elizabeth, Socikwa said it was informed by “market demand”. TPT’s focus in Ngqura will be the building of bulk terminals for manganese and fuel imports to replace those in the Port Elizabeth harbour. Ngqura has also been identified as the current transit hub for southern Africa and South-South traffic. A vehicle export and transit hub to serve the region will be built on the current site of the ore and fuel dumps in the PE harbour. It is at this point that the plans of business in the Eastern Cape and Transnet follow different lines of thinking. This is most evident in Transnet Freight Rail, which is focusing on ore lines to the ports rather than improving the links to Gauteng and the hinterland. Transnet is focusing on bulk exports and transit cargo – neither of which creates significant jobs or opportunities for business in the Eastern Cape. The province’s MEC for economic affairs, environment and tourism, Mcebisi Jonas, recently said “shipping and logistics go together like sailors and rum. Logistics and supply chain management are undoubtedly among the most critical dimensions of regional competitiveness. This includes shipping/cargo operations and forwarding and clearing agents.” Jonas and his team are known to have butted heads with Transnet on its apparent side-lining of East London. He told delegates “we have been working closely with Transnet to develop long-term plans for each port that align with our local and regional growth strategies”. That, it seems, is the real breakthrough – Transnet has shown that it is prepared to listen to the needs of the Eastern Cape. Morwe and Socikwa say they are open to talk and establish – in the words of Socikwa – “meaningful and working partnerships”. INSERT & CAPTION TPT plans to invest R300m in a new coal terminal for East London. – Karl Socikwa