Durban port upgrade and expansion project, South Africa

11th March 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 will increase the capacity of the terminal to 1.2-million twenty-foot equivalent units (TEUs) by 2016/17.

In addition, the North quay at DCT Pier 2 will be extended to increase capacity 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, among other projects.

Value
The project forms part of Transnet’s initial five-year R110.5-billion capital expenditure programme until 2015/16 and the group’s larger R312.2-billion seven-year Market Demand Strategy (MDS) until 2018/19.

However, funding for the new dig-out 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
The TNPA reported in December 2015 that it was pressing ahead with its investment under Transnet’s MDS, despite poor economic growth.

The TNPA board has approved the R70-million upgrade of Pier 2 at the DCT.

Durban port manager Moshe Motlohi and Durban Chamber of Commerce and Industry president Zeph Ndlovu have highlighted the importance of investing in “South Africa’s flagship port” if it is to remain competitive and reclaim its place as the second-largest port in Africa.

Amid ongoing port upgrades in Africa, the Port of Durban is now ranked first in sub-Saharan Africa, but has slipped to third in Africa and fourth in the southern hemisphere.

Noting that the Chinese are actively and aggressively investing in African ports, Ndlovu has warned that the Port of Durban cannot rest on its laurels. “We must press ahead with the MDS to retain our competitive edge. If we postpone investment, it will be at our own peril.”

He has noted that it is difficult in current economic times to supply additional capacity ahead of demand. However, he says decision-makers have to move beyond “just looking at accounting percentages”. Durban will need 25% “headroom” if it is to respond to challenges from other ports in Africa. 

He has also said that the existing port needs to optimise capacity and “sweat” its infrastructure and assets before it can call for more investment.

Although the TNPA says the Durban Dig Out Port will be delayed by several years, it does not specify by how many. 

Motlohi has said the Durban port will increase container capacity by 2022/23, owing to improvements at Pier 2 and the Salisbury Island infill, which has also been approved. This will be enough until 2025, if not 2030. Current capacity of about 3.1-million TEUs will increase to 5.4-million TEUs.

The TNPA expects to create and sustain 95 200 direct and indirect jobs in Durban. The latest estimated growth for 2015/16 is 6.9%.

Motlohi has noted that capital investment in the Port of Durban over the next seven years will be about R24-billion.

Turning to the Salisbury Island infill, Motlohi has stated that the north quay will be lengthened to the sandbank to accommodate three ships instead of the current two. He has added that an agreement has been reached between the TNPA, the City of Durban and the provincial Department of Environmental Affairs with regard to mitigating the environmental impact of the project, with TNPA to build a new sandbank.

Meanwhile, work on berths 2, 5, 6, 7, 8 and 10 has been completed at Island View. Upgrades of firefighting infrastructure are under way and due for completion in March 2018, while the upgrade of Berth 1 is in the feasibility stage. Work is expected to start in mid-2016 for completion at the end of 2019.

The upgrade of Berth 4 is expected to start in mid-2021 for completion at the end of 2022.

Further, Durban’s fleet upgrade is well under way.

Construction and engineering group Aveng Grinaker-LTA says its mechanical and electrical contracts division is making good progress on the electrical installation of nine harbour tugs, with work having started on the second and third tugs.

The first tug, the 31-m-long Mvezo, was launched in November 2015, forming part of the Southern African Shipyards and TNPA’s R1.4-billion tug-building programme.

The Mvezo is undergoing final fit-out and readiness for harbour and sea trials. The company notes that completion and handover of the last vessel was on time and schedule for the end of February 2018.

Aveng’s scope of work included procurement, commissioning assistance and attendance during harbour and sea acceptance trials at the Southern African Shipyards, in Durban.

Work also includes the supply and installation of marine-pattern cable ladder racks, support steel and watertight cable sealing penetrations, as well as the provision of all cable installation, glanding and termination materials.
 
Aveng Grinaker-LTA will further carry out the installation, termination and testing of all ships’ marine-approved electrical power, control, navigation and communications systems cables, as well as the installation of the main electrical switchboards and subdistribution boards and panels.

The team will also assist in commissioning all electrical power, control, navigation and communications systems.

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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