No spending cuts – TNPA

Transnet National Ports
Authority (TNPA) has denied
reports in the international
trade press about intended
spending cuts on its port
projects.
“It’s a misinterpretation of
a release sent out to the press
last month,” said Ricky Bhikraj,
executive manager for capacity
and enablement at TNPA.
It was not a cut in the
various port development
projects being carried out
by TNPA under its market
demand strategy (MDS). In
this, it has invested R5.78
billion in ports infrastructure
over the past three years
and plans to spend a further
R53.5bn over the next decade.
Under this strategy,
according to Bhikraj, the ports
authority aimed to create and
manage infrastructure capacity
ahead of demand. “There is
therefore a continued focus on
infrastructure creation and
maintenance.”
The area where a “more
flexible approach” was being
taken referred to brand
new projects falling under
Operation Phakisa.
“You’ve got to remember
that all these newbuild
(greenfield) projects are being
approached as public-private
sector partnerships (PPPs), so
it’s TNPA going out to market
to try to attract private sector
participants,” Bhikraj told
FTW.
“They’re not spending all
TNPA money so it is not TNPA
cutting spending. What the
presentation said was that
TNPA has had to tweak its
approach to suit what the
market and climate says, for
example reduce risk, look at
timelines, etc.”
According to Bhikraj,
demand driving oil and gas
exploration and rig repair
(utilisation) has fallen by 40%-
50%. He said the appetite to
invest was in low-risk options –
but industry remained positive
about oil and gas opportunities
from 2018 onwards.
TNPA therefore remained
committed to invest in marine
manufacturing, he added.
He said interaction with
industry would continue
regarding the timing and needs
to effectively invest scarce
capital resources.
All the newbuild projects
under Operation Phakisa
are still expected to be fully
operational by December 2019.
Selvan Pillay, senior
manager of planning and
development, highlighted some
of the future plans for ports
infrastructure that would
continue as planned.
These include developments
in Richards Bay, Durban and
Saldanha Bay.
For Richards Bay, SA’s
premier bulk port, the major
growth areas for the port were
seen to be dry bulk, liquid bulk
and breakbulk cargo handling.
In Durban, SA’s premier
container port, major
expansion projects in the
short term include deepening
and lengthening of the North
Quay and infill at Pier 1 of
DCT, berth reconstruction
and deepening at Island
View and Maydon Wharf,
and development of a new
dedicated passenger terminal.
For the Port of Saldanha
Bay, SA’s deepest draught
port, there was potential to
expand waterside and landside
infrastructure to support
the proposed industrial
development zone (IDZ), he
said.
CAPTION
The Port of Durban ... major
expansion projects continue.