A DEAL between Transnet and the Airports Company SA for the purchase of land earmarked for a R75bn port in Durban — at the site of the old airport — is expected by the end of next month.

Progress on the negotiations is being hampered by a difference in price expectations between the two companies, complicated by the Public Finance Management Act, which requires each to behave in its own best interest, writes Nicky Smith

“We think that by the end of next month we will know,” George Mahlalela, Department of Transport director-general, said yesterday. “The discussions are now about how much of the land do we want and what do we want to do with the rest.”

He said the land could be worth anything between R5bn and R15bn. “Transnet wants it for development, it’s a strategic piece of land, so we can’t really be driven by market valuations.”

Source: Business Day