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Wednesday, July 24, 2024

Transnet Picks Grindrod to Develop Container Facility at Port of Richards Bay

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The Transnet National Ports Authority (TNPA) has announced the appointment of Grindrod South Africa as the preferred bidder to develop and operate a new container handling facility at the Port of Richards Bay in KwaZulu-Natal.

This strategic decision aligns with TNPA’s goal to significantly boost the port’s annual container handling capacity from the current 50,000 twenty-foot equivalent units (TEUs) to 200,000 TEUs.

The ambitious project, which involves a capital investment of approximately R285 million, is set to substantially enhance the port’s infrastructure.

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Phyllis Difeto, TNPA’s acting CEO, highlighted that this development will not only improve the port’s capabilities but also serve the northern parts of the KwaZulu-Natal province more effectively.

Grindrod South Africa will collaborate with Eyamakhosi Resources, a local entity within the Umhlathuze municipality, ensuring that the project benefits from regional expertise and contributes to local economic development.

Xolani Mbambo, CEO of Grindrod Limited, expressed confidence in the project’s potential to bolster global trade and drive economic growth in the region.

“This facility will play a pivotal role in enhancing the competitiveness of South Africa’s ports, facilitating increased trade volumes, and promoting regional development,” Mbambo stated.

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This announcement comes amidst ongoing legal proceedings involving Transnet’s selection of International Container Terminal Services (ICTSI) of the Philippines as a 25-year partner for the Durban Container Terminal (DCT) Pier 2.

Rival bidder AP Moller–Maersk, from Denmark, is contesting ICTSI’s selection, with the case expected to be heard between July and September.

Despite the legal uncertainties surrounding DCT Pier 2, Transnet Port Terminals remains committed to investing in its infrastructure, ensuring continuous improvement and efficiency.

The new container facility at Richards Bay is poised to transform the port’s operations, reinforcing its status as a key hub in South Africa’s maritime industry and supporting the broader economic objectives of the region.

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