Richards Bay could do with more of Transnet’s funds

Container terminal would make logical sense TERRY HUTSON IN SOME respects the port of Richards Bay has faded from the limelight, particularly since the advent of Coega and massive projects at Durban. This despite the port consistently outperforming all the other ports in terms of volume. During the 2004/05 fiscal year Richards Bay handled 80.2 million tonnes of bulk cargo, which was more than double the combined bulk cargoes at all the other ports. Coal was the largest constituent (68mt). But as the figures show, Richards Bay isn’t just coal – the port also handled nearly 5mt of breakbulk, only slightly below the busiest breakbulk port, Durban (6.405mt) and far and away above the next best (Saldanha at 1.307mt) In total cargo the port handled a little under 85mt of all cargoes, which is almost double that at all the other ports combined. (source NPA). What matters about these statistics is that they demonstrate how important Richards Bay is to the national economy. They also demonstrate the need for continued
investment by Transnet and its satellite companies NPA, Sapo and Spoornet in equipping the port for continued growth
and future expansion. The port has everything going for it – sufficient land for future port expansion, deep water to handle the largest Capesize ships, and a strategic proximity to the bulk cargo regions in KZN, Mpumalanga, and Limpopo, as well as the country’s two principal industrial zones of Gauteng and Durban/Pinetown. But there’s evidence that the port lags in infrastructure and equipment, which has forced private enterprise to quietly become involved in the provision of cargo handling equipment, simply to keep the ships moving. For years the appeals of industry and business for a container terminal have fallen on deaf ears while 475 n.miles to the southwest the same logic used to ignore such a facility for Richards Bay is used to justify a R4.1 billion investment to provide the Eastern Cape with the very same. Not that any Zululander would wish to deny his Eastern Cape cousin the right to handle containers. Zululanders are too polite a people to suggest that, but they would like a little of the same, please. On the positive side work is under way to construct an additional quay at the coal terminal – an investment costing over R250 million. The expansion is timeous following the statement by Trevor McGiddy, chief executive of South Dunes Coal Terminal, that the expansion of coal exports from Richards Bay Coal Terminal from the present 72mt to 86mt is now seen as insufficient to meet demand, particularly from emerging empowerment companies. “We’re looking at ways to expand beyond what we originally envisaged,” he told the Global Mining Conference in Cape Town recently, and said the planned expansion would have to be doubled simply to meet demand from the emerging miners. In another project a private company is reported to have submitted plans for a US$4 billion oil refinery near the port which will be geared for the export of refined petroleum rather than local consumption. Given the current emphasis on the worldwide shortage of refineries, such a venture is almost guaranteed its success, and can be expected to change the face of the port quite dramatically. In addition the construction of Tata Steel’s R650 million, 1.2 million tonnes pa ferrochrome smelter is awaiting an environment impact assessment and will further add value to the port and country in the form of exports. If Durban has 20 years to go before the ‘House Full’ signs go up, Richards Bay is assured of an even greater long-term future, but even more so once the politicians agree on its importance and priority to the nation’s economy. Facts and figures Facts and figures In 2004/5
Richards Bay handled: l 80.2mt of bulk cargo – double the combined total at all other ports l 5mt of breakbulk – just below Durban’s 6.4mt l 85mt in total – almost double that at all other ports combined An aerial view of Richards Bay showing the multi purpose berths in the top background and dry bulk terminal in the immediate foreground.