Transnet inks R1.3 billion project to help boost the KZN economy

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Published Jun 7, 2024

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A new development of a liquid bulk facility at the Port of Durban’s Maydon Wharf Precinct is set to help boost the province’s economy.

Transnet National Ports Authority (TNPA) signed a significant Terminal Operator Agreement (TOA) with Mnambithi Terminals this week in order to get the development up and running.

The facility has an investment value of R1.3 billion.

The project will transform the port’s infrastructure and feature advanced direct rail and road loading capabilities, an on-site truck staging area, and automated loading systems, according to the eThekwini Municipality.

The new upgrades will streamline operations and reduce road congestion in the Maydon Wharf area as well.

The initiative forms part of Transnet’s broader Recovery Plan aimed at boosting volume recovery and operational efficiencies across its divisions, Michelle Phillips, Transnet Group Chief Executive Officer said.

“TNPA is deliberate about enabling transformation in the industry and breaking barriers of entry by ensuring inclusion and access for all,” she added.

“We are therefore delighted to welcome Mnambithi Terminals and hope that this strategic relationship will promote the national, strategic, and economic interests of the country,” Phillips emphasised.

eThekwini Mayor Mxolisi Kaunda said that the project was a pivotal moment for Durban.

He welcomed the move and said it was a significant step in growing Durban’s economy.

The facility will be executed in two phases, according to the municipality.

First on the agenda is the demolition of the existing structures which will require the installation of tanks, associated infrastructures and roads.

Transnet will also connect pipelines to the Mnambithi Terminals to receive liquid cargo.

R233 million for roads

In March, Transnet said that the intensified pressure posed by an influx of trucks on the Port of Durban’s road infrastructure has prompted TNPA to invest R233 million in the rehabilitation of roads.

The roads that will be rehabilitated are in key container-handling port precincts. This includes the Container and Maydon Wharf and the liquid bulk Island View precinct.

The Port of Durban is a crucial contributor to the South African economy, handling approximately 60% of the country’s total container volumes, Nkumbuzi Ben-Mazwi, the acting TNPA port manager for the Port of Durban said.

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