Transnet National Ports Authority (TNPA) is keeping mum about a deal brokered between South Africa and China’s Chery Holdings that will see the construction of a shipbuilding yard at the Port of Richards Bay. News agency Reuters first broke the story during the Brics Conference in Durban recently, saying the giant automotive manufacturing company had reached the deal worth several billion dollars with South Africa that would allow the country to build a completely new shipbuilding and repair facility at the port along the north coast. It quoted unnamed senior government officials saying the final terms of the agreement had been worked out at a meeting of the leaders of the Brics emerging economies. Partners in the deal include South Africa’s Industrial Development Corporation (IDC), the China Development Bank, the China Africa Development Fund and Imbani Holdings. But TNPA would not be drawn on the matter despite several requests from FTW. The organisation’s spokesperson, Lunga Ngcobo, said it was not a matter on which she could comment and could only confirm that TNPA was currently involved in a request for proposal (RFP) process for the drydock facility at the Port of Richards Bay. This process allows interested parties to submit proposals and brings structure to the procurement decisions that have to be made. “We anticipate going to market not later than the end of June this year,” she said. In an unrelated deal the China Development Bank has committed to lending Transnet Freight Rail a few billion dollars to revamp ageing rail lines. While neither parties have given a figure to this deal, it is rumoured to be around R46 billion. China’s trade with South Africa has boomed in the past few years. The Asian giant has become the country’s biggest bilateral trade partner with total trade now amounting to R201 billion. The presidency said last week that it welcomed the continued investment of China in the country and would declare 2014 the “Year of China” in South Africa. INSERT ‘We anticipate going to market not later than the end of June this year.’ – Transnet
