Transnet to invest R33bn in port terminals unit
Transnet Group will invest R33bn in its Transnet Port Terminals (TPT) business unit, with the bulk of this investment being spent on the multiple commodity terminals of Richards Bay and Durban, TPT CEO Karl Socikwa says.
The state-owned ports and freight company was keeping an eye on the softening of demand from Europe because of the continued economic uncertainty in that region and could revise its investment plans should it need to, Mr Socikwa said on Tuesday at a ports and rail conference in Sandton.
“We are not oblivious to what is happening in Europe, despite that we will continue with our investment programme,” said Mr Socikwa.
The investments are being undertaken as part of the Transnet’s seven-year R300bn Market Demand Strategy to boost capacity.
TPT has seen a fall off in volumes in its container business, which is a measure of export and import activity and dependent on the general economic activity of the country, he said.
“There is nothing we can do to influence those volumes,” he said.
Richard Bay is a complex terminal, he said, as it has different operating systems for many of its 17 commodities that are handled at this terminal.
One of the major investment priorities is to address the investment backlogs that have accumulated.
Durban’s port is also receiving a substantial portion of this investment in terminals, Mr Socikwa said.
Transnet plans to install new cranes that will be able to handle higher volumes of containers.
According to Transnet CEO, Brian Molefe, gross crane moves per hour, a key measure of operating efficiencies, will improve at Durban’s container terminal by 52% after the investment in new assets at the port.