Name and Location
New Richards Bay coal terminal project, KwaZulu-Natal, South Africa.

Client
Transnet National Ports Authority (TNPA).

Project Description
A conceptual study for a new coal terminal in Richards Bay has been completed as part of a government-backed plan to create export capacity for emerging black coal miners. It is currently envisaged that the facility could be developed in stages, possibly by a private terminal operator, starting at 14-million tons a year and potentially increasing to 32-million tons over time.

The new terminal is being proposed as an open-access facility.

The terminal, together with Transnet’s general freight port expansion plan, forms part of a portfolio of strategic projects being overseen by the Presidential Infrastructure Coordinating Commission.

Value
The entire project has been tentatively priced at R15-billion, with half of that likely to be for the account of TNPA, which is the landlord and infrastructure provider. The balance would need to be funded by the terminal operator.

Duration
Not stated.

Latest Developments
TNPA could issue a request for expressions of interest during the course of 2013, in line with the competitive process stipulated for new terminals in South Africa’s ports legislation.

However, Transnet Port Terminals, which currently operates the bulk of the country’s port terminals, is unlikely to be precluded from bidding.

Much detailed engineering and design work are also still required and could take off in April, should the project pass a so-called gateway review, which was scheduled for late March.

In addition, it is likely that TNPA will have to buy additional land, as the current preferred site is on a site currently owned by Foskor. However, Transnet is also closely monitoring developments at BHP Billiton’s struggling Bayside aluminium smelter, as the site occupied by the smelter could be the preferred option to the Foskor land, should it become available.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
TNPA, tel +27 11 351 9001 or fax +27 11 351 9023.