Coega seeks partner for R8bn plan

Cape Town - Transnet and the department of public enterprises are designing a framework for private sector participation in a project to build a massive container terminal at Coega.

This disclosure was made in parliament yesterday by public enterprises minister Alec Erwin, who said during the national assembly debate on his budget that more detailed reports would be made in the near future.

At a media briefing Erwin said the container project was expected to cost about R8 billion. It would initially have two berths, which would later be expanded to four, and would at an early stage be able to handle between 2 million and 3 million containers a year.

"Coega will be a deep water port," Erwin said. "We can take the biggest container carriers.

"It's a big build. Two berths operating flat out will handle 3 million containers a year. When we expand it to four it will be a very big terminal."

Most containers transported today are of the 40 foot (12.2m) variety, which are equal to two twenty-foot equivalent units (teus). By comparison, as disclosed in Business Report yesterday, Durban harbour will be handling about 3 million teus a year by 2009.

Erwin wanted the Coega terminal to start operating in 2009. Handling general port goods would start before that.

Referring to Canadian group Alcan's plan to build an aluminium smelter at Coega, Erwin said: "Our commitments to the Alcan project mean that we will have to start supplying to them when they start building in 2008."


The terminal would have three potential functions: to supply goods directly to the Eastern Cape; to provide a link to Gauteng and the mineral deposits in the Northern Cape; and to transship containers.

"Later we will start feeding the interior with minerals, with bulk ore products, as well," he added.

Port Elizabeth would be profoundly affected by the Coega development but it would remain a working port, handling cars and fresh produce.

The minister told MPs that progress in the projects planned by Transnet to sustain and expand rail operations and port infrastructure around the country was "satisfactory".

These include the Saldanha port and rail line, the Cape Town container terminal, Durban's Pier One container terminal, the Durban harbour entrance widening, and the coal line.

"Transnet has achieved at least 90 percent of the 2006/07 targets set in its corporate plan," he said. "In the few instances where targets were not met, it was due to a need to re-evaluate the scope, design and resources of projects, revisions in respect of environmental impact assessment outcomes and adjustments to prolonged lead times."

Asked how Spoornet planned to cope with the expected flood of containers to and from Gauteng, spokesperson Molatwane Likhethe said: "An analysis is under way by all Transnet divisions to make sure the business is handled properly and in the best interests of the country. We do not want to come up with a Spoornet answer alone."

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