Agriports concession agreement concluded
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 agriports in the country – the East London Grain Elevator, at the Port of East London, and the Durban agriport, at the Port of Durban.
Agriports are regarded as strategic facilities for the country, impacting on critical needs such as food security, transformation and long-term growth within agricultural logistics.
It was necessary forTPT to turn to a private-sector partner to convert these facilities into integrated and efficient agrilogistic supply chain services because of 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 have the necessary processes in place to ensure efficiency.
TPT will provide the funding 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 around Kroonstad, in the 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 agriport 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.
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