Transnet SOC Limited (Transnet) has announced its shortlist of private-sector respondents for participation in its infrastructure development programme to upgrade Durban Pier 2 and Ngqura Container Terminals (DCT2 and NCT).
Transnet spokesperson Ayanda Shezi said in a statement on Friday that the intention was to create a 25-year special purpose vehicle (SPV) between Transnet Port Terminals (TPT) and the winning bidders, and therefore no disposal or sale of the assets would be required. After 25 years the operation of the terminals would revert fully to TPT.
Shezi said Transnet would issue Request for Proposals (RFPs) to the shortlisted respondents from the Request for Qualifications process, which is the third phase in the process to upgrade the two terminals. The process started with the issuing of Requests for Information (RFI) to the market in 2021.
“The RFI process was initiated to establish appetite from industry to partner with Transnet in the port improvement plans intended to increase throughput and efficiencies at the ports and to ensure full utilisation of capacity in Ngqura, in particular, (to) contribute positively to South Africa’s competitiveness,” Shezi said.
The improvement in port efficiencies will support South Africa’s competitiveness and our ability to grow jobs in the manufacturing and export economy.
“Partnering with global port terminal operators and shipping lines offers the opportunity to attract much-needed investment, and instil best-practice management and enhanced technological capability to rapidly improve the performance and volume throughput at the Ports of Durban and Ngqura,” Shezi said.
Transnet added that the goal was to reposition Durban as “a gateway hub port” and that it planned to achieve significant growth in container capacity over the coming years.
“As part of the port master plans, Transnet aims to improve commercial performance and throughput at DCT Pier 2 by bringing in a partner with international terminal operations experience,” Shezi said.
NCT, located at the Port of Ngqura in the Eastern Cape, serves as a transhipment port for East and West African coast traffic and for vessels travelling from South America to Asia. The terminal has been operating at a loss for several years.
“The preferred bidder will be expected to bring in additional transhipment volumes and improve terminal performance,” Shezi said.
The shortlisted respondents for Durban Pier 2 include: APM Terminals AMI Management DMCEST; China Harbour Engineering Company Ltd and Guangzhou Port Co. Ltd; COSCO Shipping Ports Limited; DP World Limited; Global Ports Services Pty; Grindrod Freight Services (Pty) Ltd, and Hamburger Hafen Und Logistik Aktiengesellschaft; International Container Terminal Services, Inc; Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd; Star Classic Investments Limited and Abu Dhabi Ports and Terminal Investment Limited and REMGRO Limited.
Respondents who have been shortlisted for NCT are APM Terminals AMI Management DMCEST; Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd; Star Classic Investments Limited and Abu Dhabi Ports; and Terminal Investment Limited and REMGRO Limited.
The shortlisted companies will have until December to submit their proposals for adjudication. The shortlisting is subject to a due diligence process to be undertaken by Transnet.
The preferred bidders for each terminal are expected to be appointed by February 2023.
