The Transnet National Ports Authority (TNPA) expects to spend about R2.4-billion on maintenance and capacity building projects in the ports of Durban and Richards Bay between 2014 and 2015, CEO Tau Morwe said during last week’s briefing on the parastatal’s plans for the upcoming year.

Although the briefing provided a broad overview with little by way of detail about specific projects, he highlighted key developments that were top of mind.

These included the deepening of berths at the Durban Container Terminal (DCT), which had been put on hold following the rejection of two environmental impact assessment reports by the Department of Environmental Affairs. Morwe said the TNPA would engage with the department to clarify the issues raised, as the project was of paramount importance for both safety and logistical reasons.

He said, from an infrastructure perspective, the TNPA had ensured that both the DCT and Maydon Wharf terminals were able to handle bigger cranes and had increased rail strength at both. Now, Morwe said the actual integrity of the berths needed to be addressed.

He said the TNPA would not compromise on safety and intended investing R21.3-billion to deepen berths from 12.8 m to 16.5 m. Currently, the berths did not conform to minimum Eurocode 7 safety standards.

Another problem was that, despite larger vessels capable of carrying more than 10 000 twenty-foot equivalent units (TEUs) now being able to enter Durban harbour, following the deepening and widening of the channel into the port, the berths could not accommodate them. “It doesn’t make sense for these larger vessels to have to come in not fully laden,” Morwe said, admitting that this was causing significant logistical problems.

While dealing with these delays, he said attention would turn to developing container facilities at Salisbury Island. “This has been on the cards for some time and it was always the intention to use Salisbury Island to expand capacity when it came to both berths and terminal operating space,” he said.

The two projects were closely related as, once berths were available on Salisbury Island, it would be possible to take three berths out of operation at the DCT to deepen them, Morwe added.

He said the expected total package for the development of Salisbury Island would be R6-billion over seven years, with R1.3-billion to be spent during the first three. The TNPA was currently negotiating the transfer of the land, which was used as a naval base, from the South African National Defence Force.

Morwe said, simultaneously, the dig-out port due to be built at the old Durban Airport site was in the “key feasibility study phase”. He said negotiations to acquire land surrounding the existing site were well under way.

The TNPA, Morwe said, was also grappling with a number of issues outside of infrastructural development. One was enabling ships to fly the South African flag and benefit from preferential services and charges. Although he said this would not necessarily be the responsibility of the TNPA, it had looked at benefits that would accrue to ships so flagged. “However, the TNPA can’t be the sole contributor to this discussion and is hopeful that a team will be put in place to look at how this will be put into effect,” Morwe noted.

He added that the TNPA was also working closely with the Department of Trade and Industry when it came to charges. Up until now, Morwe pointed out, it was more expensive to export beneficiated products than it was to export nonbeneficiated products. He admitted that, in relation to government’s efforts to try to create a manufacturing base in South Africa, it was evident that Transnet’s pricing policies were acting as a constraint. As a result, the TNPA was submitting a revised strategy and it was hoped that the port regulator would make a pronouncement as soon as possible.

Morwe said one of the chief impediments to effective planning and development of ports in Durban and Richards Bay, to date, was the fact that the TNPA had planned in isolation. He said the TNPA was now engaging at both provincial and city level and hoped to resolve issues such as road congestion leading into and out of the Durban port effectively in the short and longer term.

Overall, Morwe promised that the TNPA would constantly monitor efficiency levels within the ports and address problems. He also warned that there “would be consequences” for those who failed to deliver.