KwaZulu-Natal Business 2022-23
The 2022/23 edition of KwaZulu-Natal Business is the 14th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on national government’s campaign to encourage private investment in ports. The vital role of the ports of Durban and Richards Bay in the South African economy cannot be understated and putting them in a better position to deal with commodities and cargoes of every sort is clearly in the national interest. A special purpose vehicle is to be created within Transnet to make dealing with private companies less complicated. The increasing importance of the Oceans Economy to the future of the provincial and national economy is relevant to any examination of the economy of KwaZulu-Natal. This applies as much to trade and ship-repair as it does to the exciting gas discoveries which have been made off the coast of Mozambique and South Africa.
The 2022/23 edition of KwaZulu-Natal Business is the 14th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on national government’s campaign to encourage private investment in ports. The vital role of the ports of Durban and Richards Bay in the South African economy cannot be understated and putting them in a better position to deal with commodities and cargoes of every sort is clearly in the national interest. A special purpose vehicle is to be created within Transnet to make dealing with private companies less complicated.
The increasing importance of the Oceans Economy to the future of the provincial and national economy is relevant to any examination of the economy of KwaZulu-Natal. This applies as much to trade and ship-repair as it does to the exciting gas discoveries which have been made off the coast of Mozambique and South Africa.
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SPECIAL FEATURE<br />
Private investments in ports<br />
are gathering speed<br />
Upgrades at <strong>KwaZulu</strong>-<strong>Natal</strong>’s two big ports will mean South Africa is better<br />
prepared for the next commodity boom.<br />
Exports from the Hillside Aluminium smelter keep cranes busy on the docks. Credit: Hillside Aluminium<br />
A<br />
sharp spike in commodity prices in 2021<br />
meant that the South African government<br />
collected R120-billion more in tax<br />
revenue than it had thought it would.<br />
But it could have been much more.<br />
The country’s ports are not as efficient as<br />
they might be, and to address this the National<br />
Department of Public Enterprises has announced<br />
a plan to bring private investors into port and<br />
logistics operations to a greater extent. Opening<br />
third-party access to the country’s freight rail<br />
network is part of the same plan.<br />
Transnet National Ports Authority (TNPA) is<br />
on a path to become an independent subsidiary<br />
of the state entity Transnet. This will enable it to<br />
partner more efficiently with private companies.<br />
Plans have been presented for turning the<br />
Port of Durban, already a large and busy harbour,<br />
into a “super terminal” that would deal with more<br />
volumes of cargo than any other harbour in Africa.<br />
Private investors are being encouraged<br />
to investment an amount of R100-billion into<br />
the port in the next decade. In early <strong>2022</strong>, two<br />
companies stepped up.<br />
Dormac Marine Engineering has renewed its<br />
leases and is undertaking investment in expanding<br />
infrastructure its machine shops and cranes. This<br />
follows a R400-million investment in a new floating<br />
dock which has a lifting capacity of 8 500 tons.<br />
Dormac employs 136 employees and the<br />
rental paid for the company’s facilities contribute<br />
significantly to Transnet’s income and to the economy<br />
of the eThekwini Metropolitan Municipality.<br />
A new liquid bulk terminal at the Maydon Wharf 6<br />
in the Port of Durban will be developed and operated<br />
by Mnambithi Terminals. The investment is worth<br />
R1.5-billion and will create more than 1 500 temporary<br />
direct and other indirect job opportunities.<br />
A $26-million chemical tanker forms part of the<br />
investment. The vessel is the first such vessel to be<br />
acquired by a South African company and will be<br />
flagged locally.<br />
Also at Durban, TNPA and the <strong>KwaZulu</strong> Cruise<br />
Terminal (KCT) consortium – in which MSC Cruises<br />
KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />
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