Eastern Cape wants bigger share of Transnet capex

The Eastern Cape is pushing for a bigger share of Transnet’s capital spending over the next seven years. With 40% earmarked for KwaZulu- Natal and just 6.73% for the Eastern Cape, with its three ports, including Ngqura, the province is not happy. Transnet group chief executive Brian Molefe told the Nelson Mandela Bay Business Chamber recently that Ngqura was designed as a transit port, and that there was therefore no need to strengthen the rail links to the Reef. The Port Elizabeth logistics and business community is unhappy with this policy as they believe it ignores the realities of shipping. Lines will be offloading both transit and import/export cargo. With uncompetitive rail links to the hinterland, they would rather call on Cape Town, Durban or Maputo in order to make a single stop. Currently, rail tariffs from Cape Town to the Reef are lower than those from Port Elizabeth to Gauteng. FTW understands that this has already seen some volumes shift out of Ngqura back to Cape Town. CAPTION Brian Molefe ... ‘Ngqura was designed as a transit port.