Business Link

…is now open for business!

by Claire Warneke

Sunday, 4 October 2009 saw the beginning of a new era of trade in the Eastern Cape as the first commercial vessel docked in the deep water Port of Ngqura.

The port forms part of the Coega Industrial Development Zone (IDZ) and has been under construction for over ten years. Making history, the MSC Catania loaded and off-loaded a total of 275 containers at an average of 19 containers per hour.

MSC Cantania quayside

Two days later, the MSC Shanghai dropped off her cargo at the port’s container terminal. The massive ship was 275 metres long with a draft of 14.5 metres taking advantage of the port’s channel depth of 18 metres and a basin depth of 16 metres.

In a workshop held on 20 October 2009, both Transnet and the Eastern Cape Department of Roads and Transport (DoRT) highlighted the fact that the port of Ngqura is perfectly positioned to take advantage of world trade.

Tantaswa Cici, Manager: Maritime Safety Management proposed that the current economic situation and the threat of Somali pirates could divert freight travelling from the EU through the Suez canal to India. “The Port of Ngqura is perfectly situated to be a strategic hub between these two centres,” said Cici. “Also, the Suez canal cannot accommodate very large ships.”

The way forward, according to Cici, is to put together a business plan and feasibility study for the Eastern Cape maritime industry to ensure that Nelson Mandela Bay can contribute towards the economy. She also identified the need for a feasibility plan for a ship repair facility in the Eastern Cape. According to Cici, “the future of maritime is in the Eastern Cape.”

Transnet Port Terminals CEO Tau Morwe also addressed the workshop. Agreeing with Ms Cici, he said that the maritime industry could boost the Eastern Cape’s economy substantially. However, he emphasised the fact that government had a big role to play in instigating and facilitating the move towards a maritime-focussed industry.

Transnet Team

Morwe highlighted some of these opportunities:

New port equipment supplied by international equipment manufacturers requires local maintenance and support

There is an opportunity to supply items such as tyres and fuel for the new cranes. “We spent about R72 million on tyres for the railway cranes,” says Morwe. “This is a huge opportunity for a local manufacturer.”

There is a need for transport and logistics support including container repair and storage and cargo consolidation

The establishment of regional connectivity will also create opportunities for short sea shipping cargo consolidation and value added logistics

Morwe emphasised the need for maritime-related training (boat pilots, marine engineering, parts manufacturing). “You can never over-train”! The municipality is currently putting together a list of maritime training providers (including Nelson Mandela Metropolitan University and Siyaloba Fishing Academy) to identify training needs and opportunities. In another milestone achievement, the first container to leave the ship was manoeuvred by a female crane operator. Transnet invested millions of rand in training up new teams for the port of Ngqura.

Addressing the delegates, Morwe said that although monopolies are often thought to create inefficiency, there is a need for a state monopoly in the maritime industry. “We need a state monopoly to trigger economic growth. No private sector company would have spent R10 billion on Ngqura. However, the state needs help to generate economic development.” Investment into the ports of Ngqura and Port Elizabeth has created many opportunities for economic participation in the short and medium term.

The R10-billion investment by Transnet has produced the most modern harbour in Africa. The improved infrastructure will help to relieve container congestion in other South African ports and will also attract additional transhipment cargo. Research has shown that the port will offer increased national trade competitiveness, improved services levels from the port operator, and reduced logistics costs.

Catania and STS cranes

The Port of Ngqura is also set to be the sole hub port for South Africa. Ngqura is situated “smack in the middle of the biggest world markets, and also in the middle of the growing southsouth trade, he said. The hub status would also help make the neighbouring Coega Industrial Development Zone more competitive and attractive as an investment destination.