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Creecy highlights ports authority investments to improve efficiencies

SA's ports have declined dramatically over the years

A tender dispute involving Transnet and the Durban Pier 2 Terminal has spotlighted a highly unconditional approach: using market cap to prove solvency. Picture: SANDILE NDLOVU
A tender dispute involving Transnet and the Durban Pier 2 Terminal has spotlighted a highly unconditional approach: using market cap to prove solvency. Picture: SANDILE NDLOVU

The Transnet National Ports Authority (TNPA) has made significant investments to improve its infrastructure and operations, including R1bn in the marine fleet renewal programme, says transport minister Barbara Creecy. 

The programme aims to boost tugboat availability and enhance shipping operations, which the minister said on Friday were crucial as ports provided an important gateway for international trade. 

The performance of SA’s ports has declined dramatically over the years. According to this year’s Container Port Performance Index (CPPI), SA has four of the worst-performing ports in the world. Cape Town ranks last in the CPPI’s list of 405 ports, the Port of Ngqura is at 404, Durban at 398 and Port Elizabeth at 391.

Creecy said the TNPA’s marine fleet renewal programme “is critical in driving shipping efficiencies and reliability, whilst positioning the ports as competitive and a catalyst for economic growth”.

“State-of-the-art equipment positions our ports as more competitive destinations for international trade.”

Creecy outlined the investments being made by the TNPA at SA’s ports, including the delivery of seven tugboats, five to the port of Durban and two to East London. 

She said a short-, medium- and long-term fleet plan would be implemented, which entailed the replacement and refurbishment of key equipment such as ship-to-shore cranes (STS), rubber-tyred gantry cranes (RTGs) and rail-mounted gantry cranes.

“Investment in critical equipment is crucial to maintain operational efficiency and competitiveness. Transnet Port Terminals (TPT) has placed an order for 28 RTGs for the Cape Town container terminal, with the first batch of nine of these cranes due for delivery by May 2025 to be in service by end-June 2025.

“There is also an order for 16 RTGs for the Durban container terminal Pier 1, with the first batch of nine RTGs scheduled for delivery by November 2024 to be in service by end-February 2025.” 

Creecy said the TNPA planned to increase the berth capacity of the automotive terminal at East London port to allow for the berthing of modern automotive carriers. Once completed, the port would be able to simultaneously berth two larger vessels with a ripple effect on increased volume throughput.

“The TNPA has also initiated a process to procure two jib cranes for the port’s dry dock facility to increase the ship repair facility’s capacity and volume throughout the 2024/25 financial year.” 

The development of a liquefied natural gas (LNG) terminal in the Ngqura port was gaining momentum.

“The TNPA, in collaboration with Infrastructure SA and the Industrial Development Corporation, has issued a request for proposals for an environmental impact assessment. This process is carried out in tandem with negotiations of the terminal operator agreement between the TNPA and the Strategic Fuel Fund to build and operate an offshore LNG regasification facility at the Port of Ngqura for 30 years.”

The TNPA planned to migrate manganese to the Ngqura port in 2028/29 to meet export demand with a manganese export terminal to be developed. 

Creecy said Transnet continued to make long-term investments in the Eastern Cape, collaborating with the government and strategic funders to expand the southern corridor rail network to provide additional rail capacity to run three additional daily 50-wagon sets between Port Elizabeth Harbour and Gauteng for automotive logistics.

ensorl@businesslive.co.za

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