Arguments for Coega

Posted On Tuesday, 31 July 2001 03:01 Published by eProp Commercial Property News
Rate this item
(0 votes)

AN independent study by Stellenbosch-based Maritime Education Research and Information Technology (MERIT) has found that the Port of Ngqura is viable without the Coega Industrial Development Zone and more importantly, that South Africa needs a deepwater container facility at the port of Ngqura.

Property-Housing-Residential

The following extracts from the MERIT study are published in order to clear up confusion about the report:

'While it seems feasible to raise the capacities of the container terminals at Cape Town and Port Elizabeth to cope with the predicted demand for throughput at those ports in accordance with the existing trends, albeit at considerable cost and with environmental constraints permitting, the maximum capacity of the terminal at Durban is inadequate to meet the predicted demand.

'The capacity of that terminal is presently being raised at an approved cost of R1343 million in order to handle the expected throughput until 2007/08.

Further expansion may be feasible at an additional cost of some R1302 million to extend the capacity until about 2012/13, although the technical and environmental problems will be difficult to overcome.

'Additional capacity after 2012/13, according to the current forecasts, will require the construction of a new port on the site of the Durban International Airport, if that can be relocated to La Mercy, or there may be other possibilities for providing another terminal in the port which have not yet been researched.

In any event, the prospects for such development being completed before 2012/13 are remote while the costs will be formidable.

'The Port of Richard's Bay and the proposed Port of Ngqura at Coega seem to be the only alternative locations for new container terminals to enable all the demand for container throughput until 2019/20 to be accommodated.

'The results of the analysis show that the construction of the basic port infrastructure to provide a harbour at Coega and the development of a container terminal for a throughput of 1.8 million TEU's in 2019/20, are economically justified as an alternative to the development of a container terminal at Richard's Bay.

'As there seems to be no other alternatives but to develop the Port and container terminal at Coega or proceed with one or the other of the development scenarios at Durban and Richard's Bay, the main concern is really the cost-efficiency of the investment, as reflected in the aforementioned parameters, which clearly favour the proposed development at Coega as the better option.

'It should be pointed out that the current expenditure of R1 343 million to raise the capacity of the container terminal at Durban until 2007/08 could have constituted a saving in further justification of the proposed new terminal had the projection and logistics of the container throughput at South African ports been undertaken earlier in the history of the planning of the Port of Ngqura.

'That additional saving would have contributed substantially to the benefits of developing the terminal at Coega and would have required the construction of the port much sooner.'

A constant stream of potential investors through the doors of the CDC has convinced us that the construction of a modern, deepwater harbour in the Southern Hemisphere will attract investment in the neighbouring Coega Industrial Development Zone.

The CDC is currently in discussion with a number of investors and details will be provided as these investors complete feasibility studies and confirm their investment.

Copies of the MERIT study, which is one of the specialist studies in the Subsequent Draft Environmental Impact Report for the Proposed Port of Ngqura.

Last modified on Thursday, 26 June 2014 09:24

Most Popular

Redefine making headway following its announcement to acquire balance of EPP shares

Nov 29, 2021
Andrew Konig (1)
Redefine Properties today announced that it proposes to make a share-for-share offer to…

New president elected by Consulting Engineers South Africa (CESA)

Nov 29, 2021
Olu_Soluade
Consulting Engineers South Africa’s (CESA) 68th Annual General Meeting held on Wednesday,…

Silver lining from unrest and Covid-19 for businesses that can reimagine sustainable future growth

Dec 01, 2021
Malusi_Mthuli
The unrest and looting that took place in many parts of KwaZulu-Natal and Gauteng in July…

Please publish modules in offcanvas position.