Multi-billion rand port projects will go ahead

Transnet Port Terminals’ multi-billion rand projects will go ahead, despite the current business environment, chief operating officer Solly Letsaolo told Western Cape business last week when he delivered the annual business-to-business presentation in Cape Town. CEO Tau Morwe was engaged in important parliamentary business, as acting Transnet Group CEO Chris Wells made a submission to the parliamentary portfolio committee for public enterprises. He said Transnet required an additional R4.7 billion before March 31 next year to enable it to maintain its R80.5 billion expansion programme, of which R47.5 billion (59%) is being spent on infrastructural projects. Business concerns about future port capacity and possible congestion were evident at the Mother City session, with the future of Saldanha other than as an iron ore exporter also in question. To which Letsaolo responded: “We are not sitting back.” He said a national infrastructure presentation dealing with possible future expansion was currently doing the rounds to elicit public comment around the country. “If you look at their plans for Saldanha you will see things that will blow your mind, some container and breakbulk and other facilities, so there is a long-term TPT plan.” (Not available at this session). Transnet’s total investment in the Sishen-Saldanha iron ore channel is R8.1 billion, of which TPT is contributing R1.2 billion (still under consideration), to enable ore exports to increase from the current 46 million tons to 60 million a year. Nosipho Damasane, TPT’s general manager, sales, logistics and commercial undertook to call a meeting of all necessary Saldanha stakeholders within the next two months. She made the point that the port could not be expanded beyond current rail capacity, therefore any future expansion would have to be well synchronised and environmental concerns taken into account. She said the Transnet plan was to use longer ore trains to enable rail time slots for general cargo into the port. TPT’s investment in ports has increased from R131 million in the 2002 financial year to R3.2 billion in the last financial year.