Transnet wants private sector participation in new dig-out port

Transnet has successfully acquired the land of the former Durban International Airport (DIA) from the Airports company South Africa (Acsa). The R1.8-billion property deal with Acsa was concluded ahead of the end of the two stateowned companies’ financial year on March 31 and saw Transnet paying R1.2 billion. Transnet CE Brian Molefe last week said the deal, however, had not been approved by the Competition Commission and the money paid in the previous financial year would qualify as spend in the current financial year. “But we don’t expect any hiccups in the process and the Competition Commission has recommended that the transaction be approved by the Competition Tribunal without conditions.” Molefe said various environmental studies would be an early priority. It is believed that Transnet will be developing the new port under their private sector participation (PSP) scheme. This because the newly announced market demand strategy that will see some R300 billion pushed into Transnet operations country-wide does not include funds for the construction of a new port. The project, which is expected to only go out on tender in the next financial year, will take at least ten years to develop and is aimed at meeting Transnet’s projected growth capacity.