Private operator lands container terminal concession

TNPA appoints bidder for Richards Bay

SOUTH AFRICA: Transnet National Ports Authority (TNPA) has awarded a 25-year concession to Grindrod South Africa (Pty) Ltd to operate a container terminal in the Port of Richards Bay

In the 2022 Request for Information, TNPA noted the ongoing requests from parties seeking to invest in the development of a container handling facility in the port in order to meet anticipated industrial demand in KwaZulu Natal and adjoining provinces.

With no appetite to invest in a container facility, however, TNPA took the idea to market in the form of a Request for Information (RFI) issued in 2022 and a Request for Proposals (RFP) last year.

Containers are currently handled at the multi-purpose facility at Berth 606 which has a capacity of 50,000 TEUs per annum. According to a statement issued by the Authority, the new development of a container terminal will enable an increase in the port’s container handling capacity to 200,000 TEUs per annum, in alignment with the TNPA KZN ports’ master plan.

Although RFI respondents confirmed the Port of Durban’s status as a gateway hub for containers, they highlighted the opportunity to develop a container facility at the Port of Richards Bay to supplement activities at the Port of Durban and offer relief to congestion issues.

According to information shared in the RFP, container traffic is expected to grow at a rate of 10 – 15% initially due to the shifting of the container traffic from Durban Port to Richards Bay Port. And, it is anticipated that the facility could reach up to 100,000 TEUs in three to five years.

The new facility will incorporate Berth 606 and Grindrod will be required to acquire and commission cranes and gantries for the optimal handling of containers as well as acquire all necessary licences and environmental approvals for the construction of the container terminal.

According to the RFP, the total footprint of the terminal will cover 675,000 m².

Significant investment

Estimating the project investment to be in the region of R285 million, Grindrod SA is well positioned to spearhead the development and operation of the facility with more than two decades of experience in the container sector.

Scheduled to become operational in 2027, the project is poised to stimulate economic growth, create jobs, and foster skills development in Richards Bay.

To advance the transformation agenda, Grindrod SA intends to partner with Eyamakhosi Resources (Pty) Ltd, a local entity within the Umhlathuze municipality, to ensure that the benefits of this project extend to the local community.

“This is a significant step forward in our efforts to enhance the Port of Richards Bay’s infrastructure and capacity. We are confident that Grindrod South Africa’s experience and commitment to local partnership will drive the success of the facility, bringing considerable economic and logistical benefits to the region,” said Advocate Phyllis Difeto, TNPA Acting Chief Executive.

Xolani Mbambo, Chief Executive Officer of Grindrod Limited, commented: “We are honoured to have been awarded the preferred bidder status to develop and operate the container handling facility in the Richards Bay port. We believe that it will significantly impact global trade and the region's economic growth, contributing to employment and uplifting local communities.”