P&ON’s New stands by Coega commitment

É but reiterates need for robust inland infrastructure, writes Ray Smuts THE oft-asked, oft-avoided question: will P&O Nedlloyd ultimately reach an accord with the powers-that-be over concessioning of the Coega container terminal, remains unanswered for now. Barry New, who succeeded Nigel Pusey as MD of P&O Nedlloyd for the Southern Africa region five months ago, cannot be emphatic on when or whether. Too many imponderables remain for him to set down a fixed time frame, but what he does acknowledge is that P&O Nedlloyd still displays ‘a very clear interest’ in Coega. “The principal issue as far as P&O Nedlloyd is concerned is a framework agreement that will satisfy all parties. Discussions continue at all levels so, yes, the door remains open. “What is possibly indicated is that the authorities are still unclear on the terms under which they want to go forward with concessioning. “There will be no leaps of faith or blank cheques. The commitment remains strong from our point of view but the returns have to be right to make it worthwhile.” In June 2001, as former MD Pusey maintained a stoic silence over the delay in P&O Nedlloyd, the declared ‘preferred partner’ of the Coega Development Corporation, signing an agreement over container terminal concessioning, FTW conducted a poll among South African-based shipping line heads. All considered this new facility-in-the-making as unwise or unnecessary. Like his predecessor, New believes in the Coega development. “Yes, there are complications as suggested by our studies, but it is viable under the right operating terms and conditions. However it will undoubtedly have to be supported by a very robust inland infrastructure. “Access has to be worked through very carefully as well as construction of the network, particularly the rail network.” He declines to be drawn on the nature of P&O Nedlloyd’s possible financial commitment. He says the size of the container terminal still has to be finalised as it will depend on the phased development of the berths. On whether concessioning generally is likely to be finalised this year (2003), New says given the projects currently taking place and the follow-up that will be necessary, one has to ‘start to challenge whether it will be accomplished before the year is out.