R1.8bn land deal between Transnet and ACSA

Posted On Thursday, 12 April 2012 02:00 Published by eProp Commercial Property News
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Transnet has concluded a R1.8-billion property deal with fellow State-owned company (SoC) Airports Company South Africa for the acquisition of the former Durban International Airport (DIA) site

Infrastructure ImageTransnet aims to develop the DIA site into a new port over the coming 10-15 years, with siteworks anticipated in about 5-6 years time.

So reports Transnet CE Brian Molefe saying that the much-anticipated transaction had been concluded ahead of the two SoCs’ financial year-ends of March 31, 2012. However, the deal still required sanction by the competition authorities. The Competition Commission had recommended that the transaction be approved by the Competition Tribunal without conditions.

Transnet National Ports Authority (TNPA) previously indicated that it planned to pursue a so-called ‘dig-out port’ at the DIA site and the project was likely to involve an initial investment of some R50-billion. According to reports, TNPA will proceed with the development in collaboration with the private sector, under its so-called private sector participation (PSP) scheme. In such scheme, private-sector infrastructure investments of as much as R150-billion is anticipated, which could lead to the biggest PSP in SA.

Only a small portion of the R47-billion capital budget that had been set aside for TNPA under the group’s larger R300-billion, seven-year investment programme would be directed towards the project and the environmental studies that would be required to proceed with the development.

Nevertheless, the project could move ahead as a PSP during the seven-year period, running from the group’s 2012/13 financial year through to 2018/19.

A process was being designed for a build-operate-and-transfer-type development of the port and associated terminals and the details should emerge either during the course of the current financial year or during 2013/14.

 

Last modified on Monday, 28 October 2013 15:11

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