US terminal operator teams up with Dudula

15 Dec 2000 - By Staff reporter

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Terry Hutson

ONE OF the world's leading terminal operators, CSX Worldwide Terminals, threw its hat into the ring last week when it announced a 50/50 joint venture partnership with locally-based Dudula Shipping.
The joint venture intends positioning itself as a container terminal operator in any or all of the South African ports. Durban is regarded as first prize, said vice president and chief commercial officer of CSX Worldwide Terminals, Geret De Piper, but his company will consider developing terminal operations in Richards Bay or any of the other container terminals at Port Elizabeth or Cape Town.
De Piper and Cindy Quinlan, the director of marketing and communications, were in Durban last week to sign a Memorandum of Understanding with Moses Moloele, chairman of Dudula Shipping and CEO Sithembiso Mthethwa. They also held talks with Portnet officials.
De Piper said that CSX Worldwide Terminals would bring with it a wealth of experience and expertise as well as large amounts of capital. After a careful look at the local situation, they had selected Dudula Shipping as their local partner because Dudula fitted all requirements, including the right degree of experience in South African terminal operations. Mthethwa is a former manager of the Durban container terminal.
De Piper said that it was a requirement that any port in which they operated should be able to take the largest ships now under consideration, which meant that a draft capability of between 14 and 15 metres was essential. He said that if Durban could not be deepened, his company would be forced to switch its primary attention to Richards Bay.
CSX Worldwide Terminals is one of the world's largest container terminal operators and traces its origins back to the US's largest and oldest container shipping line, Sea-Land Service, which was recently sold to AP Moller. CSX World Terminals operates container terminals in Hong Kong, China, Australia, Germany, Finland, Netherlands, Russia, Dominican Republic, Puerto Rico and the United States. The parent company also owns and operates the largest railroad system in the Eastern United States and in 1999 generated US$10,8 billion in revenue and $339 million in operating earnings.