RB terminal upgrades to begin in June

The Port of Richards Bay will receive a cash injection of R12.1 billion over the next seven years for the replacement and upgrading of equipment and infrastructure. According to Victor Mkhize, terminal executive for Transnet Port Terminals (TPT) at the Richards Bay port, some R230 million has already been approved for the replacement of mobile equipment. “We are committed to upgrading the entire port over the next five years as this will greatly improve efficiencies,” he said. Mkhize said the port, which handles some 55% of the country’s cargo, remained an extremely complex operation due to the terminal layout and the commodities handled. Despite the challenges posed, TPT was committed to improving its efficiency and that included handling large project cargo. “The terminal handles mainly export commodities and has an infrastructure that includes a 55km conveyor belt system. Some 93% of what we handle here is bulk commodities with 65% being conveyor belted and 26% shipped via skip.” Only 7% was break bulk, said Mkhize. “We handle more than 32 different products in Richards Bay and yes, there are some clear pockets of excellence, but operational performance is often erratic due to the equipment breakdowns that we experience.” He said this had a hugely negative impact on efficiency and terminal profit margins. “It is a financially viable business, but we have to improve, and upgrading our equipment is a crucial part of better efficiency.” In an effort to increase bulk commodity capacity, construction to expand and upgrade the existing terminals is set to start in June, while a new off-loader will arrive in July. A new ship loader is also to be delivered to the Port early next year. “We are using the money allocated to us to upgrade and expand the various areas where capacity is running low. We will also replace mobile and other existing equipment with the machines that are already starting to arrive this year while more orders are being placed.”