Transnet Group to invest $39.1bn in S. Africa port and rail development
South African port operator Transnet Port Terminals (TPT) is to invest R33 billion (US$4.3bn) over the next seven years to boost economic growth and operational efficiency, IFW reports.
Overall, its parent, Transnet Group, will spend R300 billion ($39.1bn) in port and rail capital projects through to 2018/19 in investments falling within the Transnet Market Demand Strategy (MDS) recently announced by state President Jacob Zuma, IFW reported.
The bulk of TPT’s spend – 71% – will be focused on expansion projects and creating capacity to meet projected demand.
The remaining 29% will go towards capital sustaining projects aimed at achieving operating norms and upholding service delivery, including the replacement and refurbishment of aged equipment.
Some of the major capacity-creating projects to be embarked on by TPT include:
- expanding Durban Container Terminal Pier 1, which will increase the capacity of the
- terminal from 700,000teu to 820,000teu next year and to 1.2 million teu by 2016/17;
- extending the north quay at Pier 2, which will help increase its capacity from 2.1 million teu to 2.5 million teu by 2013/14 and 3.3 million teu by 2017/18;
- creating container capacity at other terminals, such as Durban Ro-Ro and Maydon Wharf through the acquisition of new equipment, such as mobile cranes, and various infrastructure upgrades;
- and expanding Ngqura Container Terminal, earmarked as a transhipment hub, from 800,000teu to 2 million teu by 2018/19 to meet anticipated volumes.
TPT CEO Karl Socikwa said: “The MDS has major implications for our division’s responsibility to facilitate unconstrained growth, unlock demand and create world-class port operations through improved efficiencies.
“These investments will continue to provide a springboard for growth. We will implement specific initiatives to grow volumes and use capacity as it comes onstream, while improving operational efficiencies and growing personnel, thus ensuring the success of the Market Demand Strategy.”