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President Zuma Launches the Port of Ngqura

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President Zuma Launches the Port of Ngqura 16 March 2012 PRESIDENT ZUMA LAUNCHES THE PORT OF NGQURA The President of the Republic of South Africa, Dr Jacob Zuma, today officially opened the state-of-the-art deep water Port of Ngqura just outside Port Elizabeth, in the Eastern Cape, marking a major milestone in the country’s infrastructure development efforts and commitment to regional economic development. The port, a green fields project, has been in construction for the past 12 years. Transnet has invested over R10 billion to develop the facility. Once complete, this port will boast a four-berth container terminal, a Liquefied Natural Gas (LNG) facility as well as a bulk and break-bulk berth. Transnet has earmarked Ngqura as a transhipment hub linking trade routes between the East and the West. South Africa needs strong, globally competitive and globally connected port operations capabilities to integrate the regional container system and capture a larger share of international container traffic. A container hub in South Africa can bring substantial benefits to regional economies and cargo owners by reducing total supply chain costs through improved connectivity, improved service levels and, by attracting more shipping lines, lead to increased competition in the shipping industry. The event was attended by major players in the global shipping, logistics and transport industries, regulators, key ministers in the economic cluster, members of the community as well as members of the provincial government including the Premier. In designing the port, Transnet integrated its plans with the Coega Industrial Development Zone (IDZ) in order to maximise efficiencies and economic benefits to businesses located in the area. It is of major strategic importance for the country and the global maritime industry. The first two container berths at the Port have been operational for the last two years. In addition, Transnet will be relocating its manganese export facility to the Port from its current location in the Port Elizabeth harbour to allow the latter to focus on clean cargo in line with the Nelson Mandela Bay Metro’s (Port Elizabeth) strategy to focus on clean cargo – automotive and containerised cargo. The Ngqura Container Terminal, with its 6 Mega–Max Ship-to-Shore cranes, 22 Rubber Tyred Gantry (RTG) cranes, among others, has been operational since October 2009 and currently moving in excess of 500 000 TEUs (twenty foot equivalent unit) per annum. In terms of efficiency, the terminal averages 29 gross crane moves per hour – a key measure of productivity for ports. In terms of the Port’s capacity and use as a transshipment hub, the global surge in larger ships being deployed to major trade routes creates a demand for better equipped ports with faster handling capability and deeper drafts which Ngqura has the means to deliver. Transshipments to and from the Ngqura hub can be serviced by smaller vessels able to call at ports that are not able to effectively accommodate larger vessel call sizes. The port employs 600 people and this number is expected to grow to just under 1000 during the next financial year. Ngqura is the best placed South African container terminal to act as a hub for east- west and north-south trades. Trade between countries in the southern hemisphere is growing rapidly and the south-south trade route is forecast to emerge as a significant global trade route in the medium to long term. In addition, the Port of Ngqura through its link to the Coega Industrial Development Zone will offer additional business and employment opportunities through value-added and logistics services, and could become a major facilitator of international trade. Issued on behalf of Transnet SOC Ltd By: Mboniso Sigonyela, spokesman for Transnet SOC Ltd 011 308 2458/083 463 7701 [email protected] For urgent queries, please contact Viwe Tlaleane 011 308 2384/083 979 0707 [email protected] NOTES TO EDITORS About the Port of Ngqura • The Port of Ngqura is a deepwater port with a depth of between 16 and 18 metres, allowing it to accommodate new generation container vessels • MSC Catania became the first commercial vessel to discharge its cargo at the Port • The Port has a 60 hectare container terminal and will be one of the largest of its kind in South Africa on completion with a capacity of 2m TEU’s has a poison free rodent monitoring and control programme through the release of nine spotted eagle owls, three rock kestrels and a peregrine falcon in the area is the only port in South Africa that has an environmental authorization (Record of Decision) for its construction and operation is the only port in South Africa that has a sand bypass system which mimics the natural literal drift has a main breakwater which is the longest in South Africa and has been designed to withstand a wave height of 9m has a completed rail link from Gauteng to the port each month approximately 31 container vessels dock at the port with a berth utilisation of around 65 % initial expectations was to handle about 100 000 TEUs during the _ financial year 2010/2011 but this was exceeded and was finally 414 000 without significant impact on container volumes of the Port of Port Elizabeth Approximately 65% of the TEU’s handled in 2011 comprised of trans- shipment cargo, revealing the port is geared to become a trans-shipment hub as originally designed About Transnet • Transnet SOC Ltd is a state-owned transport and logistics company under the auspices of the Department of Public Enterprises • Brian Molefe is the Group Chief Executive of Transnet • The Company has five operating divisions: Transnet Freight Rail Transnet National Ports Authority Transnet Port Terminals Transnet Rail Engineering Transnet Pipelines Transnet, which is self-funding without guarantees or subsidies from the fiscus, recently announced that it would triple its capital investment programme to R300 billion over seven years from the current R110 billion over five years. The company funds its investment or raises funds in the debt capital markets on the strength of its balance sheet and cash generated from its operations. Its infrastructure rejuvenation programme includes the purchase of hundreds of locomotives and wagons for its rail freight division, Transnet Freight Rail. The company is also buying equipment for its ports as it expands capacity – especially for container handling. Transnet is committed to using its massive capital investment programme to advance government’s economic development objectives including skills development, job creation, Broad-Based Black Economic Empowerment and Competitive Supplier Development Programme. .
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