More details have emerged of South Africa’s move to secure private sector investment in the port of Durban, the country’s major port.
Pravin Gordhan, Public Enterprises Manager, in a recent briefing stated that national ports operator Transnet is looking to work with private companies to secure the expansion of the port of Durban and cited investment to the tune of R100 billion by 2023.
At the centre of the government’s plans is what is described as a new Super Terminal – Terminal 2 – which is able to handle high-capacity vessels.
The first step in realising this is the establishment of the National Ports Authority as a subsidiary of Transnet – a move in the direction of the classic landlord and terminal operator arrangement with the terminal operated under private sector concession.
The second step is a Request for Information to assess the level of interest from private bidders. Following this there will be a call for bids and a bid evaluation process. In effect, the traditional path to letting a new container terminal opportunity.
It is not clear yet if this will be offered as a full Build Operate Transfer (BOT) development or if Transnet or other arms of government will participate, at least partially, in the development of the terminal’s infrastructure.
2022 was identified by Minister Gordhan as the year in which bid submission and assessment would take place.
Portia Derby, CEO, Transnet, has further stated that the organisation is looking at securing a partner that can realise timely delivery of the new terminal at the lowest possible cost.
Interestingly, Derby has also gone on record to say that Transnet will additionally be looking for partnerships with private operators at Ngqura port in the Eastern Cape.
Earlier this year Cyril Ramaphosa, President, South Africa, told the country’s Parliament that upgrading the port of Durban was an essential component of the government’s plans to achieve the recovery of the nation’s economy after the damage reaped by COVID-19 and over a decade of mediocre growth.
