Finalising plans for new seaport

South Africa’s state-owned transport group, Transnet, is believed to be close to finalising plans for the purchase of land to build a multibillion rand seaport in Durban. The company, which is formulating plans to construct a new R75 billion seaport on the site of the former Durban international airport, is reportedly close to an agreement with Airports Company SA (Acsa) to acquire the land. “We think that by the end of next month we will know,” Department of Transport director-general George Mahlalela said. It has been reported that negotiations are being delayed over disagreements in price expectations between the two companies. Mahlalela said the land could be worth between R5 billion and R15 billion. The new facilities would reduce congestion at the existing nearby Port of Durban, which is seeing freight demand rapidly increasing as the economy emerges from recession. Last year, the port handled 2.6 million TEU. It has been estimated that freight demand in the region could double within 10 to 15 years. In March, Transnet said it would invest R20.5 billion over the next five years to improve capacity and maintain harbours at Durban and Richard’s Bay. Transnet CEO Brian Molefe said: “We will put new cranes in port harbours because ships wait too long in both harbours.”