R/€ = 14.90
R/$ = 10.73
Au 1339.50 $/oz
Pt 1482.00 $/oz
Feb 26, 2007
Proposed R2bn Richards Bay dry dock plagued by delaysBack
Richards Bay|Development Bank Of Southern Africa|Imbani Projects|Industrial Development Corporation|Transnet|China|Singapore|South Africa|Richards Bay Dry Dock|Richards Bay|National Ports Authority|Denny Moffat|Ebenezer Moahloli
© Reuse this A South Africa-China consortium of companies, led by black-owned Imbani Projects, which is to build a R2-billion ship-repair facility at Richards Bay, hopes to finalise the lease agreement by the end of March, and begin construction in the secondhalf of the year, it said on Monday.
“We got the draft lease agreement and have commented on it and sent it back to the National Ports Authority (NPA),” Imbani Projects COO Ebenezer Moahloli said in a telephone interview. “The next move will be for all the relevant parties coming together, and their lawyers meeting with our lawyers to flesh it out.”
The Imbani Consortium, which was selected as the preferred bidder for the dry dock, was, however, reluctant to conduct a detailed geotechnical study on the project until it had a level of commitment from the NPA to the go ahead with the project.
The consortium was, therefore, seeking to sign a memorandum of understanding with the NPA, indicating that it planned to go ahead with the project.
“This will give us a level of comfort to put money into carrying out the relevant studies,” Moahloli stated. “We are working towards some sort of agreement.”
The group of companies, comprising three from South Africa and three from China, would then conduct the environmental-impact assessment and the feasibility study.
He hoped that this would be finalised by the end of March.
Site preparation and construction would then begin in the second half of this year.
“We're still working with a rounded figure of R2-billion,” he added.
Singapore visit “impresses” funders
Meanwhile, Moahloli said that Imbani representatives had visited dry docks in Singapore with officials from the Department of Trade and Industry, as well as possible funders for the project, the Industrial Development Corporation and the Development Bank of Southern Africa, who were all “very impressed” in the training programmes in a shipyard, as well as the various categories of employment. "They were very impressed with what they saw and all the visitors felt it was a good project for Richards Bay and the country as a whole," statead Moahloli.
Richards Bay mayor Denny Moffat also went on the trip.
“They are all very supportive of the proposed Richards Bay dry dock,” Moahloli enthused.
Imbani had originally hoped to have sealed the deal in June, and to have begun construction at the end of last year, but Moahloli said that extended negotiations between the consortium and the NPA had delayed this.
Both the NPA and its parent company, Transnet, signed off the consortium's proposal as long ago as May 2005.
The NPA was not immediately available for comment on Monday.
Edited by: Matthew Hill© Reuse this Comment Guidelines
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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 network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...
Nissan will re-enter the South African minibus taxi industry in March, when the new NV350 Impendulo goes on sale. The 16-seater has been specifically tailored to meet the terms of government’s Taxi Recapitalisation Programme, which aims to replace South Africa’s...