Manufacturers investigate alternative ports

Car terminal expansion plans quietly scrapped TERRY HUTSON NOT VERY long ago talk around SA Port Operations was all gung-ho about growth for the car terminal – the word being that Salisbury Island had to be developed as Durban’s new car terminal, not only to accommodate the unprecedented growth in vehicle movements through the port but also taking into account the concerns of city planners regarding increased traffic levels along the now renamed Victoria Embankment. To demonstrate just how positive these reports were the army, which had moved onto Salisbury Island when the navy downgraded to a naval station, had vacated the premises in anticipation of the arrival of Sapo, while the small naval station prepared to squeeze into one corner of the former expansive facility. Since them and with none of the hype that accompanied plans to develop Salisbury Island as the country’s future premier car terminal, those plans appear to have been quietly scrapped. The car terminal will remain where it is at Cato Creek on the city end of the port and the island will become … what? A further repository for containers it seems, although nothing official has been announced. These developments are made surprising by the continued growth in volumes of vehicles processed through the port. In 2006 Durban’s car terminal handled a record 389 000 motor units – consider that eight years ago the newly developed terminal was handling 40 000 units in a year. Today it has expanded beyond the confines of R berth and Cato Creek and now includes regular use of F and G berths with even E berth being pressed into duty at times. This means the vaunted City Terminal (multi purpose) has shrunk in terms of available working area (and even more so considering that containers are also being handled at this terminal). Toyota, which earlier this year completed a five year R2.4 billion investment in its multipurpose vehicle programme, is gearing up for a production capacity of 220 000 vehicles a year, of which half is said to be for the export market. In 2006 Toyota’s export market amounted to 50 000 units. This expansion comes despite the setback of having had to stop exporting Corollas to Australia on account of, so it is whispered, quality. The anticipated growth of Toyota’s exports of course puts the squeeze on available terminal space, both for Toyota and other manufacturers, a squeeze that is compounded by the phenomenal growth in motor vehicle imports. In 2006 something like 70% of vehicles handled by the port were imports. And now, with Chinese and Malaysian manufacturers joining the rush to sell vehicles into Africa, the squeeze is tightening. The effect of this is that several other manufacturers are reported to be looking seriously at other alternatives including Maputo and the Eastern Cape ports. Earlier this year Durban received its first pure car carrier with over 5000 vehicles for discharge, with indications that it is the first of many. S ince then the port has played host to several vessels of this size though not necessarily with the cargo destined for Durban.