Transnet National Ports Authority (TNPA) has appointed Grindrod South Africa as the preferred bidder to develop and operate a R285 million container-handling facility at the Port of Richards Bay.
TNPA said in a statement announcing the decision on Thursday, that the development of the terminal forms part of its plan to drive improved port efficiency and service levels.
“This development will enable an increase in the port’s container handling capacity from 50 000 to 200 000 TEU per annum, in alignment with the TNPA KwaZulu-Natal ports master plan,” the ports authority said.
TNPA said the latest award had responded to calls from the logistics industry for the development of a container terminal at Richards Bay.
The decision follows the conclusion of a Section 56 concession process in terms of the National Ports Act of 2005, which began with the issuing of a request for information and then a request for proposals to the market.
“With over 20 years of expertise in the container sector, Grindrod SA is ideally positioned to spearhead the development and operation of this facility, which is scheduled to become operational in 2027. The project entails an estimated capital investment of approximately R285m, offering a substantial boost to the region’s container industry,” TNPA said.
The project is also poised to stimulate economic growth, create jobs, and foster skills development in Richards Bay.
“The partnership with Grindrod SA, a Level 1 B-BBEE South African registered company, underscores TNPA's commitment to transformation,” the ports authority said.
Grindrod SA will partner with Eyamakhosi Resources (Pty) Ltd, a local entity within the Umhlathuze Municipality, to ensure that the benefits of this project extend to the local community.
TNPA acting chief executive, Phyllis Difeto, said the appointment was “a significant step forward” to enhance the port’s infrastructure and capacity.
“We are confident that Grindrod South Africa’s experience and commitment to local partnership will drive the success of the facility, bringing considerable economic and logistical benefits to the region," Difeto said.
Grindrod Limited chief executive officer, Xolani Mbambo, said the company was honoured to have been awarded preferred bidder status to develop and operate the facility.
“We believe that it will significantly impact global trade and the region's economic growth, contributing to employment and uplifting local communities,” Mbambo said.
The strategically-located container terminal will serve the northern parts of KwaZulu-Natal, providing vital proximity to the hinterland market. It is expected to lower logistics costs and reduce transport lead times, benefiting both local and regional economies.
