Upgrade of Durban port likely to kick off in next few months

The overhaul of Transnet's key container terminal in Durban in partnership with Philippines-based International Container Terminal Services is likely to begin within the next few months.

This according to Transnet Port Authority managing executive Earle Peters who addressed media on Thursday.

“We expect this in the next five months,” said Peters.

According to online publication The Maritime Executive, the move is part of a “long-planned programme designed to modernise operations and improve efficiency. SA’s ports have long been criticised for inefficiencies, ageing infrastructure and congestion.”

The company won a bid which spans 25 years with an option to renew the contract for another five years.  

“The company is a global operator. This would allow our employees to also have the same type of exposure globally. It's not limited to SA,” said Peters.

Transnet plans to send a delegation to the Philippines at the end of this month to learn more about the operational aspect of the company.

“We were looking for a company which would be able to invest and that is globally established.

“The other aspect is we look for specific efficiencies in the business. For example, if you have operational controls, what are the key performance measures? We were clear on the bids and the proposals they needed to submit.

“It was well-structured and an independent evaluation process. Multiple partners in a facility like this won't work. When you want control, you also want accountability. We also did not limit any of the bidders to form a consortium or joint venture,” said Peters.

According to a mandate from its board, Durban container terminal had been identified on the basis of its economic significance.

“Being the largest terminal, it was a natural selection to start with pier 2. If we are to make an impact on the economy, let’s start with the container terminal. That’s the rationale why we have opted for this. We felt it should do something to economic issues for local trade.”

If it is successful, state-owned enterprises were likely to do more such ventures. He conceded they were also hamstrung for funds and by bringing in another partner they hope to alleviate this.

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