Role for private sector in dig-out port - Transnet

Transnet has recognised that the private sector has a role to play in the Durban dig-out port (DDOP). “There is a need to involve the private sector in back-of-port activities,” Ivindra Naidoo, Transnet’s GM for group strategy, said at last week’s investment roadshow organised by the Durban Chamber of Commerce for the eThekwini Municipality. He also confirmed their involvement in investment as he pointed out a need to “leverage the private sector”. Naidoo is also a proponent of the immediacy of the need for the DDOP. He pointed out that Transnet expected a 4% annual growth in port volumes, compounded over the next 30-year period. This combined with the fact that the present Port of Durban handles 60% of all the country’s imports and exports. “Another problem is that ships are getting bigger,” he said, “and the Port of Durban was designed some time ago. We’re able to handle up to 3rd generation vessels, with a draught of 11.8-12.5 metres. But the shipping lines want to call with even bigger vessels up to 14.5-15m draught, because bigger ships translate to lower costs per TEU. And we need the infrastructure that can handle these vessels.” He pointed out that there were a number of alternatives in expanding Durban’s volume capacity. At present the options for future development are Pier 1 and Maydon Wharf. Transnet also looked at digging out the Bayhead and the DDOP on the DIA site. “What is the best option?” Naidoo asked. In the short- to mediumterm, he added, the capacity options are the Salisbury Island “lite” plan. That is the development of container capacity on the present space, once the SA Navy hands it over to Transnet. That, according to Naidoo, would provide added capacity for 0.5m TEUs. The second is the Salisbury Island “infill” plan. That is the filling in of the basin between the two outside piers of the present naval base, and providing extra capacity for 1.4m-1.8m TEUs. “We have decided we will do these short-term options, then go to the DDOP,” Naidoo said. And the viability study, he added, proves the worth of the DDOP. “Averaged over 30 years, it will contribute R16.5 billion per annum to the national economy, and R11.3bn to KZN’s gross domestic product (GDP).” CAPTION The 12 562-TEU MSC Fabiola … Durban port needs to cater for increasingly larger vessels.