October 20, 2003

By Samantha Enslin

Durban - Durban harbour could have a second container terminal within five years, but plans in this regard will depend on the efficiency of the existing Durban Container Terminal (DCT) under a private sector operator.

Mafika Mkwanazi, the outgoing chief executive of Transnet, said last week that "in terms of long-term planning, there is going to be a second container terminal at the Durban harbour.

"But it is only a plan at this stage and it will depend on the efficiency of the private sector operator appointed to run the DCT.

"If the private sector operator is performing well there will be no need to build a second container terminal," Mkwanazi said.

The government plans to appoint a private sector operator to run the DCT to improve efficiencies and to get private sector capital for infrastructure.

This is in line with the National Commercial Ports Policy which, among other things, aims to boost competition within South Africa's ports through increased private sector participation.

In light of this a second container terminal could be considered regardless of the efficiencies achieved by the private operator running the DCT.

It is unclear where a second container handling facility will be built, as there is limited scope for expansion of the Durban harbour, which is hemmed in by the city and industrial areas.

The government and labour have reached broad agreement on how to proceed with government restructuring of ports.

But labour says there is no agreement on the concessioning of the DCT, making it unclear when the government will call for proposals from the private sector to run the terminal.  

Some projections forecast container traffic at the Durban port growing by 4 percent to 5 percent a year and by 2020 Durban could be handling 2.4 million 20-foot equivalent units (TEUs). The DCT, which has six berths, now handles about 1.2 million TEUs a year.

The National Ports Authority says container traffic could rise even further to 5 million TEUs by 2020. But this will depend on using more efficient cargo handling equipment, such as changing from straddle carriers to rubber tyre gantrys; reconfiguring the terminal from a parallel to a perpendicular layout, a process which is already under way; and extending the area.

In terms of the Port of Durban Development 2005 plan, the Multi-Purpose Terminal at Pier One is being converted into additional container capacity. This will give the DCT two extra berths and stacking space for a further 325 000 TEUs a year.

Break bulk cargo, which is currently handled at Pier One, will move to the extended city terminal, where the quayside area is being increased and the berths deepened.

Mkwanazi said whether the second container terminal would be concessioned or run by SA Port Operations (Sapo), which runs the DCT, was being debated.

In terms of the National Commercial Ports Policy, the government, through Transnet, will reduce and phase out its direct involvement in terminal operations where feasible. The implication of this is that all, or most, terminals run by Sapo ultimately will be concessioned.

But Dumisani Ntuli, the director of maritime transport at the national department of transport, said last week there was never any intention to do away with Sapo.