Friday, 25 November 2011

Container terminal plans move ahead

The best possible case for the development of a container terminal facility at the Port of Richards Bay will be put forward to the Department of Public Enterprises by February 2012. This is according to team leader and economist Russell Butler of Durban-based firm of consultants - McIntosh Xaba and Associates (Pty) Ltd (MXA), who addressed the uMhlathuze Council sitting on Tuesday. The company was last month awarded a R200 000 municipal tender to compile the case for a container terminal in Richards Bay. Addressing Exco Councillors, Butler said they were collating all available information supporting the need and viability of such a facility. ‘We will also be calling in other experts,’ said Butler. ‘Transnet has a large number of details with several studies having been undertaken over the past few years. ‘We have no doubt that they will make those studies available to us.

‘We will, however, need the support of the municipality to ensure we have access to that information. ‘In assembling all data, we would be grateful for the municipality’s guidance in terms of political weight and the link with the Industrial Development Zone,’ added Butler. The company has been given approximately three months to formulate a draft report, hold workshops and submit a final report to Council next year. ‘Issues of planning and decision making are subject to opinion and fact. ‘Transnet has also developed an economic model and we will try to get access to see how that model works. ‘We will respect the municipality’s timeframe and would be grateful if staff would offer relevant data,’ Butler said. The City’s move follows Transnet’s decision to eliminate the Port as a site for a privatised container terminal.

However, City Mayor Elphas Mbatha said local corporates would largely benefit from and welcome the development of a container terminal spearheaded by local government. ‘This port has much more space and is capable of having a container terminal, which will also reduce road congestion,’ said Mbatha. ‘We don’t want government to leave Durban and choose Richards Bay. ‘If we cannot have a fully-fledged terminal, it should be a progressive facility. ‘Infrastructure precedes development and if we don’t have the infrastructure, we won’t have a strong case for a container terminal. ‘Corporates are sending containers to Durban and they would save approximately 20 dollars per container if they could have the same facility in Richards Bay.’