Jun 05, 2008
R10bn earmarked for improvements at SA's major portsBack
DURBAN|Port|Africa|Ports|Road|Roads|Transnet|Transnet Port Terminals|Water|Africa|South Africa|Durban Port|Equipment|Ports Infrastructure|Infrastructure|Morwe|Rail|Tau Morwe|Water
© Reuse this South Africa would spend R10,3-billion over the next five years to improve its equipment and infrastructure at its major ports, Transnet Port Terminals (TPT) CEO Tau Morwe said on Thursday.
This was a significant increase from the R400-million that it had invested in ports infrastructure in 2000/1.
For African ports to "stay ahead of the game" and ensure that they do not incur congestion surcharges, adequate capacity should be created ahead of demand. "Hence at the Transnet level, the emphasis being on investment on infrastructure, both on the rail side, and on the port side," Morwe said.
"Within South Africa, the focus is on ensuring that from a corridor perspective, both rail and port, there is adequate integration, adequate investments to ensure we meet the growth."
Morwe added that at the Durban Port, Transnet had seen a number of shipping lines moving containers from road to rail, however, in order for that to be done, the utility would need to ensure that the supply chain remained reliable.
Transnet was conducting an ongoing study to assess where to locate new container capacity to cope with the increasing demand. Durban Port was experiencing container growth levels of about 10% to 12%.
"If you look at where we were in 2000/1, and where we are right now, I can safely say that we are beginning to meet that demand and the key is ensuring that adequate capacity is created ahead of demand," affirmed Morwe.
He added that in 2008, South Africa's terminal utilisation was at around 78%, which meant that as the growth in containers took off there would be pressure on ensuring that demand was met.
Port congestion was mainly caused by "lacking superstructure", such as the number of cranes, so, while there could be congestion on the water side, "what we are now beginning to see in Durban is congestion on the land side rather than on the water side, trucks queuing all over the roads in Durban," Morwe said.
The lack in rail-capacity or rail-infrastructure, also contributed to congestion, and depending on how integrated the supply chain was, that could also result in congestion, and in some cases low productivity levels at ports.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Video News
Updated 3 minutes ago Thailand Automotive Parts Manufacturers Association (Tapma) president Achana Limpaitoon has expressed interest in partnering and forming joint ventures (JVs) with the organisation’s South African counterparts to grow the automotive manufacturing industries of both...
Updated 1 hour 10 minutes ago Trade and Industry Minister Dr Rob Davies has issued, for public comment, the application for the designation of an industrial development zone (IDZ) at Tshiame, in Harrismith, in the Free State, as well as the granting of an operator’s permit for an IDZ. The...
Updated 1 hour 53 minutes ago Tullow Oil drifted into the red after writing off more than $400-million in exploration costs but the Africa-focused explorer remained confident that its strategy will pay off. A disappointing run of oil wells exploration in Mauritania, Ethiopia and Norway over the...
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...