R/€ = 14.95Change: 0.04
R/$ = 14.03Change: 0.06
Au 1078.25 $/ozChange: 2.19
Pt 846.50 $/ozChange: 4.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Dec 05, 2008

Ports capex programme to improve capacity and productivity

Construction|Engineering|Harbour|Port|Building|CoAL|Efficiency|Environment|Export|Industrial|Marine|Ports|PROJECT|Projects|rail|Transnet|Equipment|Logistics|Rubber|Service|Infrastructure|Iron Ore|Iron-ore
Construction|Engineering|Harbour|Port|Building|CoAL|Efficiency|Environment|Export|Industrial|Marine|Ports|PROJECT|Projects|rail|Transnet|Equipment|Logistics|Rubber|Service|Infrastructure|Iron Ore|Iron-ore
Download PDF
Transnet National Ports Authority Annual Report (0.38 MB)
Download PDF
Transnet Port Terminals Annual Report (0.41 MB)
© Reuse this

State freight logistics group Transnet announced in its 2007/8 yearly report that it will implement a robust capital expenditure (capex) programme over the next five years to ensure that capacity is created ahead of demand and that productivity is improved.

The parastatal comments that its Transnet National Ports Authority (TNPA) division’s five-year capex plan amounts to R17,4-billion, while its Transnet Port Terminal (TPT) division’s five-year capex plan amounts to R10,3-billion.

The group plans to expand capacity at its ports. This includes the expansion at the Port of Durban, where the widening and deepening of the entrance channel is under way, as is the redevelopment of Pier 1 as a container handling facility, and the increase in capacity of the car terminal.

Meanwhile, at the Cape Town harbour, the container terminal will be widened and deepened. Continued development will take place at the Port of Ngqura, in Port Elizabeth, within the Coega industrial development zone.

TNPA Capital Expansions
Transnet states that capex increased by 144%, from just over R1-billion in the previous year to R2,5-billion in the 2007/8 financial year.

The company states in its annual report that the TNPA’s capital expansion programme has progressed well. Consider-able progress has been made on the Durban harbour entrance widening and deepening project.

The dredging works and the construction of the new northern breakwater at the harbour are currently in progress.

The construction of Berth 306 at the Richards Bay Coal Terminal has been commissioned and was completed by Transnet Capital Projects ahead of schedule and within budget.

The TNPA states that at the port of Ngqura, the paving at the container terminal has been completed, and the construction of the additional quays has started. The TNPA has received approval from the Transnet board to construct an additional bulk liquid berth at Richards Bay.

Approval has also been granted for tug acquisitions for Port Elizabeth, Durban and Richards Bay. The division has awarded a tender for the supply of a new 4 200-m2 trailing suction hopper dredger.

TPT Capital Expansion
TPT’s capital spending for the 2007/8 year amounted to just over R2-billion, including capital- ised borrowing costs, compared with R1,7-billion in the 2006/7 financial year.

Transnet states in the report that considerable areas of expenditure for the year included the refurbishment and expansion of the iron-ore export facility at Saldanha Bay, the construction of a new container terminal at Pier 1 at the Durban harbour and the procurement of terminal equipment, such as ship-to-shore cranes and rubber-tyre gantry cranes.

Other areas of expenditure include the construction of a new container terminal at the Port of Ngqura, the expansion of equipment capacity at the Cape Town and Durban container terminals and the refurbishment of the manganese export facility in Port Elizabeth.

During the 2007/8 year, TPT began building a fifth container terminal at the Port of Ngqura. The report states that Phase 1 of the terminal is expected to be operational by October 2009, with a yearly capacity of 700 000 twenty-foot equivalent units (TEUs).

The division is in the process of creating an additional 4 000 bays at the Durban car terminal. On completion, the terminal’s capacity will have grown from one berth and 6 500 parking bays in 2006, to three berths and 14 000 parking bays. The project also increases rail connectivity to and from the terminal.

The report states that the re-engineering project at the Durban container terminal is expected to increase the capacity of the terminal from 2,3-million TEUs a year to 2,9-million TEUs a year.

The Cape Town port expansion project is expected to double capacity from the existing 700 000 TEUs a year to 1,4-million TEUs a year.

The Richards Bay multipurpose terminal has commissioned a new mobile crane. The crane has achieved loading rates of 250 t/h instead of the usual 120 t/h. This has resulted in a 50% improvement in turnaround time for vessels on which the mobile crane was used.

The division states that its core challenge at present is to grow the business and to create capacity ahead of demand.

TPT says that the capex plan provides for the expansion of container handling facilities at the ports of Durban, Ngqura and Cape Town, as well as the expansion of the bulk handling facilities at Richards Bay and Saldanha Bay.

TPT’s approved capex for 2008/9 is R2,7-billion. This includes the development of the Ngqura container terminal, the Saldanha iron-ore terminal phase 1B expansion, and the Durban container terminal re-engineering project.

The Cape Town harbour capacity expansion, the Port Elizabeth manganese terminal Phase 3 expansion, the Richards Bay dry-bulk terminal plant refurbishment and expansion, and other projects are also included in the approved capex.

More than 60% of the TPT division’s capex for next year targets expansion in capacity. This includes the new container terminal at the Port of Ngqura, the expansion of the Durban and Cape Town container terminals and the upgrade of bulk handling facilities at Richards Bay and Saldanha Bay.

Future Prospects
Transnet states that although the economic prospects for the year ahead remain challenging, volume growth is expected for the TNPA and the TPT divisions, as well as all other divisions of the parastatal.

The group states that the TNPA will deliver capital projects to provide port infrastructure capacity ahead of demand. It adds that port efficiency will be improved through the enhanced service levels, as well as increasingly efficient marine resource capacity at the port.

TPT states that although it faces the significant challenge of growing the business within the context of a changing commercial environment, the projected financial performance is positive, with increasing profitability margins and returns on investment.

Edited by: Laura Tyrer
© Reuse this Comment Guidelines (150 word limit)
Other Top Projects News
GIBELA MANUFACTURING FACILITY The R1-billion manufacturing facility in Dunnottar, Johannesburg, will have a dedicated training facility, which will train 19 000 artisans
State-owned passenger rail operator the Passenger Rail Agency of South Africa’s (PRASA’s) R51-billion locomotive build programme, which is being carried out by black-empowered locomotive manufacturer Gibela Rail Consortium, will need about 1 375 skilled artisans to...
ONGOING WATER SUPPLY Water services authorities must ensure that when water services are interrupted for more than 24 hours, consumers have access to alternative water services
Regular protests by residents demanding adequate water supply proves that many South Africans are subjected to interrupted and inadequate safe drinking water supply, says Unilever Centre for Environmental Water Quality director and Rhodes University professor Tally...
OPERATOR SAFETY NO.1 The Slogging Hammer is significantly safer than the traditional method of using a wrench and sledgehammer to remove nuts and bolts
Nuts and bolts loosening, tightening and torqueing solutions developer Slogging International’s Slogging Hammer is currently undergoing on-site trials at a railway project for a West African oil and gas exploration company. If these trials prove to be successful,...
Latest News
Maurice Radebe
Imported liquefied natural gas (LNG) is expected to initiate the greater use of gas in South Africa’s currently coal-dominated electricity generation. Anticipated is the establishment of infrastructure at South African ports, such as Saldanha Bay, Coega or Richards...
As South Africa battles water restrictions precipitated by the El Niño phenomenon, aged infrastructure, above-average temperatures, below-average rainfall and climate change, industry stakeholders have called for a collaborative water stewardship approach that will...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
BARRY DWOLATZKY The CPD programme provides advanced skills required locally, and provides a stepping stone to Wits University’s Master of Engineering degree in software engineering
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96