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Durban port upgrade and expansion project, South Africa

1st July 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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

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

Project Description
The Durban Container Terminal (DCT) is the biggest and 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, to increase the DCT’s container-handling capacity.

The main projects include the expansion of the DCT Pier 1, which aims to increase the capacity of the terminal to 2.4-million twenty-foot equivalent units (TEUs). This includes the Salisbury Island project, also known as the Pier 1 Phase 2 Infill project.

The TNPA also plans to deepen berths 203 to 205 at DCT, which could raise the capacity of Pier 2 from 2.4-million TEUs to 2.9-million TEUs.

The berths will be deepened from 12.8 m to 16.5 m and lengthened from 914 m to 1 210 m to enable DCT to handle three 350 m vessels simultaneously. Construction is expected to begin in 2017 and be completed in 2022.

Together the projects are expected to increase the DCT’s capacity from 3.6-million TEUs to about 5.3-million TEUs.

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 the so-called Durban Dig-Out Port (DDOP) on the old Durban International Airport (DIA) site, among other projects.

Value
The project forms part of Transnet’s  larger R340-billion to R380-billion ten-year rolling market demand strategy (MDS).

Funding for the new dig-out port at the DIA has not been included in the strategy.

Duration
Ongoing.

Latest Developments
Having postponed any immediate development  of the DDOP, TNPA is progressing with two more modest projects to expand the container capacity at the Port of Durban.

Transnet CEO Siyabonga Gama has indicated that the DDOP is “on hold” owing to lower-than-anticipated economic growth, which has resulted in a material slowdown in container volume growth.

In the State-owned group’s 2016 financial year, the group marine container volumes declined 4% to 4.36-million TEUs, from 4.57-million TEUs in 2015.

In addition, the outlook for container volume growth is expected to be below the assumptions used in the 2012 MDS, which anticipated a 76% increase in container volume between 2012 and 2019, from 4.3-million TEUs to 7.6-million TEUs.

As a result, Gama expects the first sod at the DDOP, which is earmarked for the old DIA site, to be turned only in 2026.

In the meantime, attention has been redirected to “optimising” the existing capacity at the Port of Durban, including the integration of Salisbury Island into the DCT.

Previously associated with a naval base, Transnet has made progress in its discussion with the Department of Defence about incorporating the property into the DCT.

TNPA CEO Richard Vallihu has said that the project now forms part of a R54-billion investment plan for the country’s eight commercial ports – a plan that is itself part of Transnet’s larger R340-billion to R380-billion ten-year rolling MDS.
The proposed cost of the Salisbury Island project has not yet been disclosed as the feasibility study is still under way. In addition, Transnet does not want to release an estimate for the berths-deepening project ahead of the tender.

Vallihu has told business stakeholders that port-related investments are likely to play a more prominent role in the MDS, which has previously been dominated by rail and pipelines projects.

The Pier 1 Phase 2 Infill project has been listed among the top 20 priority projects for the TNPA, with senior manager for planning and development Selvan Pillay reporting that a feasibility study is currently under way. However, environmental processes, as well as a lease agreement will also have to be concluded before the project can proceed.

The development could add capacity for an additional 2.4-million TEUs at Pier 1, which is currently only able to handle 700 000 TEUs a year. TNPA expects to begin work on the project in 2018, for completion in 2023.

TNPA is also preparing to issue a tender "soon" for the deepening of berths 203 to 205 at DCT.

As with all Transnet projects, they will only proceed once demand has been validated and a review is currently under way on the demand outlook for container growth, with the 6.5%-plus-a-year assumption in the MDS likely to be revised down to around 3.5%.

Key Contracts and Suppliers
Protekon Consulting & Construction; CPS; IMPSA-Jikelele joint venture (JV); Kalmar African National Engineering, or 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, or 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); Shanghai Zhenhua Heavy Industries Co, or  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); Liebherr (design, fabrication, delivery, erection, testing and commissioning of the cranes); Stefanutti Stocks AXSYS JV (Mayden Wharf – main contractor) and Aveng Grinaker-LTA (electrical installation of nine harbour tugs).

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 or 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.
TPT, tel + 27 31 308 8000 or fax +27 31 308 8084.
ZPMC, tel + 86 21 58396666, fax +86 21 58399555 or email mail@zpmc.com.
Aveng Grinaker-LTA, tel +27 31 710 6100.

 
 
 

Edited by Creamer Media Reporter

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