AFTER years of appeals to Transnet from industry and municipal leaders for a fully functional container terminal in Richards Bay, one investment company has finally put its foot down.
Siyakhupuka Investment Holdings will challenge the Transnet National Ports Authority (TNPA) before the Ports Regulator in Durban today (Thursday) and tomorrow after the parastatal refused to grant it a concession to operate a local container terminal ‘without reason or adherence to the National Ports Act’.
According to Siyakhupuka Managing Director Jan Scheepers, who was once the Port Manager at Richards Bay and Port Elizabeth, Transnet is suppressing competition to the detriment of the economy.
For the past seven years TNPA has reportedly declined the company’s applications for the terminal with numerous arguments contradicting ports legislation.
‘The premise for Siyakhupuka’s complaint to the Ports Regulator is based on the fact that TNPA is practicing anti-competitive behaviour,’ said Scheepers.
‘We need to address the ‘blockage’ of economic development in northern KZN, preventing further industrial development owing to the lack of container facilities in Richards Bay.
The matter has also been referred to the Competition Commission – currently under review.
Pushing more products
‘The United Nations handbook for port planners states container cargo can be handled five to ten times more efficiently than break bulk.
‘We thus want to target all break bulk cargoes from local industry, including Mondi, RBM, BHP Billiton Aluminium, Bell Equipment, Tata Steel, Huletts, Tronox and many smaller industries.
‘We also want to accommodate break bulk cargoes from the hinterland such as ferrochrome, steel, granite, timber and many more.
‘Of great importance is that the terminal will provide market access for agricultural output of Zululand such as fruit, sugar and meat with cooled containers.
‘Agricultural exports will be enhanced due to fresh produce being exported in cooler facilities.’
Scheepers emphasised that if Richards Bay has a container shipping network to global connections, more investors will come running.
‘It will enable exporters access to all global markets from Richards Bay and address the high cost of logistics.
‘This will remove a very important development block as new industries will only invest if they can have access from and to all global destinations.’
Sea of jobs
Scheepers expects a container terminal will create 650 direct job opportunities at the port and at related service industries.
‘The big win, however, is when the terminal makes new investments possible.
‘It is estimated that through that, some 10 000 additional jobs can be created every five years.
‘In terms of job creation and development of the region, the establishment of global container shipping connections will be the single biggest event since the construction of the port,’ said Scheepers.
No comment from TNPA could be obtained at the time of going to print.
