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Durban port upgrade and expansion project, South Africa

26th April 2013

By: Creamer Media Reporter

  

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Name and Location
Durban port upgrade and expansion project, KwaZulu-Natal, South Africa.

Client
The Transnet National Ports Authority and Transnet Port Terminals, divisions of freight logistics company Transnet.

Project Description
The Durban Container Terminal (DCT) is the biggest and the busiest in the southern hemisphere and currently handles 64% of the country’s seaborne container traffic.

Transnet is implementing an ambitious expansion project at the Durban port and its container terminals, comprising several individual work packages aimed at increasing the DCT’s container-handling capacity.

The main projects include the expansion of the DCT Pier 1, which will increase the capacity of the terminal from 700 000 twenty-foot equivalent units (TEUs) to 820 000 TEUs by 2013 and eventually to 1.2-million TEUs by 2016/17.

In addition, the North quay at DCT Pier 2 will be extended to increase the capacity from 2.1-million TEUs in 2011/12 to 2.5-million TEUs by 2013/14 and to 3.3-million TEUs by 2017/18.

Container capacity is also being created at other terminals, such as the Durban Ro-Ro and Maydon Wharf terminals, through the acquisition of new equipment, including mobile cranes and various infrastructure upgrades.

Transnet is further proposing the phased development of a new dig-out port on the old Durban International Airport (DIA) site.

Value
The project forms part of an initial five-year R110.5-billion capital expenditure programme to 2015/16 and the group’s larger R300-billion seven-year Market Demand Strategy to 2018/19.

However, funding for the new port at the DIA is not included in the strategy.

Transnet has indicated that it is in the final stages of appointing a transaction adviser and is considering various funding options and models for private-sector participation in the project.

Duration
Ongoing.

Latest Developments
Transnet has concluded the first in a series of stakeholder-engagement sessions on the proposed Dig-Out Port project.

Transnet is overseeing the initial concept work on what could be a R75-billion public–private partnership, earmarked for development at the city’s old international airport site.

Transnet started with high-level technical and environmental studies in 2012 and, by July, several technical design options should be finalised. The concept phase precedes the prefeasibility and feasibility phases, which are expected to continue for four years.

The initial consultations, with representatives from local business and property, environmental and civic associations took place in March.

Stakeholders were asked to comment on a Sustainable Port Development Framework (SPDF) discussion document, which was distributed in February.

The early-stage engagement was designed to share project information, open lines of communication and initiate a dialogue with various stakeholder groups.

Feedback will be factored into the final SPDF to integrate environmental and social principles into the planning process.

The project has not been included in Transnet’s seven-year, R300-billion market demand strategy, but has been integrated into government’s second Strategic Integrated Project, or Sip 2, which is focused on upgrading the Durban–Free State–Gauteng freight corridor.

Under the current schedule, construction of the project’s first four-berth phase should begin in 2016, with commissioning proposed for 2020.

Envisaged is the four-phase development of Africa’s largest deep-water container terminal, capable of handling 9.6-million twenty-foot-equivalent units through 16 berths by 2037, and the incorporation of an automotive terminal and a liquid-bulk handling facility by 2050.

The proposed development has, however, attracted some criticism from surrounding communities and environmental lobby groups, who have argued that there has been too little consultation.

Key Contracts and Suppliers
Protekon Consulting & Construction; CPS; IMPSA-Jikelele joint venture (JV); Kalmar African National Engineering (ANE) JV; Hydroflow and Liebherr Cranes (Germany); Grinaker-LTA, Interbeton and Bafokeng Bateman Services (Bafokeng Civil Works and Bateman Materials Handling) JV; DSE and Dorbyl (subcontractors steelwork fabrication); La Spezia Container Terminal, Italy (three Liebherr cranes); Kalmar (straddle carriers); DSE (manufacture of structural components and the erection and installation of mechanical and electrical work); Protekon (planning and designing the infrastructure for the installation of the Liebherr cranes at the south terminal); Protekon Construction (two new berths for Island View terminal); Dura Piling (piling contract – Island View); Basil Read (main contractor – Pier 1, civil and paving works – DCT); Chryso South Africa (concrete products – hard standing area, Pier 1); Lafarge Readymix (design and supply of concrete – hard standing area, Pier 1); Natal Portland Cement – NPC (cement – Pier 1); Kalmar Industries (30 straddle carriers); TBA (review, analysis and simulation of DCT’s container-handling operations); Sarens Group (crawler crane); the Japan Bank for International Cooperation (loan finance); Shanghai Zhenhua Port Machinery Company (rail-mounted gantry cranes); ZPMC (design, manufacture, delivery and commissioning of cranes); Dredging International and Group Five (port-widening project); C3 Shared Services (codesign of security solution at Pier 1); Mott MacDonald, in JV with Hatch and Goba (widening of Durban harbour entrance and construction of Pier 1 container terminal); Blue IQ (financial coordinator for proposed container terminal at the old DIA site); and Liebherr (design, fabrication, delivery, erection, testing and commissioning of the cranes).

On Budget and on Time?
The project is on schedule and within budget.

Contact Details for Project Information
ANE Durban head office, tel +27 31 579 3301, fax +27 31 579 3323 or email aned@mweb.co.za.
Basil Read, tel +27 11 418 6375 or fax +27 11 418 6334.
Bateman, tel +27 11 899 9111 or email pgm@batemanbv.com.
Chryso South Africa, tel +27 11 395 9700 or fax +27 11 397 6644.
Dorbyl, tel +27 41 408 6009, fax +27 41 408 6035 or email dorbyl@guestroauto.com.
Dredging International, tel +32 3 250 52 11, fax +32 3 250 56 50 or email dredging@dredging.com.
DSE, tel +27 11 871 4111, fax +27 11 871 4141.
Grinaker-LTA, tel +27 11 578 6000, fax +27 11 578 6161 or email enquiry@grinaker-lta.co.za.
Group Five, tel +27 11 806 0111, fax +27 11 803 5520 or email info@g5.co.za.
Kalmar Industries, tel +27 31 327 1800 or fax +27 31 327 1811.
Lafarge Readymix, tel +27 31 275 7400.
NPC, tel +27 31 450 4411 or fax +27 31 451 9010.
Sarens Group, Hendrik Sarens, tel +32 52 319 397 or email hendrik.sarens@sarens.com.
Transnet Port Terminals corporate affairs manager, Sne Makhanya, tel +27 31 308 8093 or email
Sne.Makhanya@transnet.net
ZPMC, tel + 86 21 58396666, fax +86 21 58399555 or email mail@zpmc.com.

Edited by Creamer Media Reporter

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