Transnet Port Terminals (TPT) will enter into a 15-year concession agreement with AFGRI Operations for the operation and maintenance of landside operations.
The agreement will focus on two strategic agri-ports in the country – the East London Grain Elevator in the Port of East London and the Durban agri-port at the Port of Durban.
Agri-ports are regarded as strategic facilities for the country, impacting on critical needs such as food security, transformation and long-term growth within agricultural logistics.
TPT’s turning to a private sector partner to convert these facilities into integrated and efficient agri-logistic supply chain services is necessitated by a lack of capital investment and a decline in market share.
The length of the contract will allow TPT to recoup its capital investment, which is currently required to give the terminals a facelift and install the necessary processes to ensure efficiency.
TPT will provide the funding needed to restore or reconfigure the quayside plant and equipment and provide efficient rail capacity for private sector partners.
The East London elevator is a natural market for maize export originating from areas of Kroonstad, Free State and the servicing of the Eastern Cape milling industry.
It also acts as an overflow terminal for the Port of Durban during peak harvesting seasons.
The Durban agri-port is one of three agri-bulk terminals in the Port of Durban.
It boasts good road and infrastructure connections to inland provinces, such as Gauteng and the Free State.
The terminal has an installed capacity of 156 000 t, translating into 10.8-million tonnes a year of capacity.
Potential capacity at the terminal is projected to be between 600 000 t/y to 700 000 t/y.
The terminal can also handle wheat and soya bean imports and ad hoc projects on request.
Both AFGRI and TPT will be in charge of planning and scheduling of landside and quayside operations, health and safety, and legal matters.
The operations are intended for integration from April 2019.