Transnet plans to invest almost R25bn in the next five years to expand and reposition its ports. This includes upgrades to the country’s three automotive terminals at the ports of Durban, East London and Gqeberha, while also taking advantage of the opportunities presented by the influx of cruise liners to the western region of the country.
The plans will increase the country’s automotive terminal capacity in the provinces that have a big automotive sector, such as the Eastern Cape.
The East London port will also see the capacity of its automotive terminal increased, with similar enhancements planned for the Gqeberha port. East London is the preferred port for imports and exports for Mercedes-Benz SA, as well as other vehicle importers such as Fiat and Chrysler SA.
A waterfront development is also planned for the port of Gqeberha, which is home to the car terminal that moves vehicles manufactured by Isuzu, VW SA, Ford Motor, Audi, Porsche and Bentley, as well as Caterpillar machinery through its facility.
The Durban port, which handles a significant portion of SA’s exports and imports, is also scheduled for expansion, with plans to increase the capacity of its automotive terminal among other expansion projects.
Transnet said it was also in discussions to run additional trains between Gqeberha and Gauteng to improve the link between the automotive manufacturing hubs.
Motor industry umbrella body Naamsa reported earlier this year that manufacturers shipped 396,290 vehicles abroad last year despite the operational challenges reported across the country’s ports, which the World Bank has ranked as some of the worst in the world, rankings which Transnet has refuted.
The port of Saldanha will get a liquefied natural gas (LNG) import facility, and the construction of a new berth and marine manufacturing facility, while a cruise terminal development and additional capacity for multipurpose mega chrome berths is planned for Richards Bay port. The SA Navy is also set for relocation to Naval Island.
The port of Cape Town will expand its capacity from 1-million TEUs (20-foot equivalent units) to 1.4-million.
Funding
Rajesh Dana, who is responsible for the Western Region ports of Cape Town, Mossel Bay and Saldanha, said the R25bn bill to expand the country’s ports would be sourced from the open market. “We do source funding on the open market. What you may find interesting is the fact that Transnet National Ports Authority has its tariffs regulated,” Dana said.
Mossel Bay was the unsighted gem in the crown of the eight ports run by Transnet, he said. The expansion of the port would also see the construction of facilities to house authorities such as the police, immigration and customs officials, to allow for a “smooth” flow of tourism.
Dana said construction of these facilities was expected to be completed by the end of November to allow the port to be ready for the next cruise season.
“We are also looking at a multipurpose terminal. We are busy with concept studies, looking at the deepening of the port and expansion of our key four, which is our main key that accommodates the bigger vessels. We are looking at concluding all our processes and studies that needs to be done by 2030.”
Port of Cape Town manager Ophelia Shabane said the expansion of the port’s capacity was expected to be concluded at the end of December 2026.
“There is work that has already started in terms of the detailed design of the facility. The rationale for us having to expand the capacity of the port is we are planning for future growth in terms of handling more volumes, Our provincial government and industry as a whole want to in the next five to 10 years get in a space where they double the kind of volumes we are handling today. The project in itself will allow the terminal to stack up more containers.”
The port has also gone to market looking for an operator who is able to handle LPG (liquefied petroleum gas).
Transnet is planning to build a new port in the Northern Cape. “We have a port in concept at the moment. It is a port that is going to be based in Boegoebaai. The port will host green hydrogen exports, as well as mineral ores. So we are looking at building, constructing and operationalising the port in Boegoebaai which is approximately 50km south of the Namibian border,” Dana said.
Transnet has endured a torrid few years, marked by declining operational performance, which hurt exports and imports, and a weak balance sheet.
“With over R120bn in debt at the end of March 2023, Transnet’s ability to invest in much-needed infrastructure upgrades is highly constrained which, combined with its poor operational capacity, has choked the economy. Consultancy firm, the GAIN Group, has estimated that inefficient rail transport at Transnet could have cost the economy approximately R353bn last year, mainly due to forfeited commodity exports,” analysts from asset manager Coronation said.
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