Massive R89 Billion KZN Logistics Hub Expansion Underway by Transnet

In a significant move to strengthen South Africa's port infrastructure, Transnet National Ports Authority (TNPA) is actively progressing with the R89 billion KwaZulu-Natal (KZN) Logistics Hub project. This comprehensive initiative strives to modernize the ports of Durban and Richards Bay with a series of ambitious developments designed to bolster economic activity and ensure South Africa's position as a competitive player in maritime logistics.

Bridgette Gasa-Toboti, TNPA's portfolio director, alongside Moshi Motlohi, managing executive for the eastern region, recently provided details about the extensive plans for the logistics hub and Durban port's transformation. An impressive 31 initiatives are slated to crank up port effectiveness and traffic capacity, including the establishment of new container terminals, an expanded vehicle terminal, the deepening of Maydon Wharf Channel, and the creation of a mega chrome terminal.

The port of Durban is set to transition into a formidable container hub, with expectations to surge export volumes from the current 2.9 million TEUs to an astounding 11.4 million TEUs per year. This ambitious target is alongside the Point terminal expansion in Durban, which aims to escalate exports of fully built vehicle units from 520,000 to nearly one million FBUs annually by 2030.

The project's scope involves demolishing existing structures such as the Ocean Terminal Building and several sheds, paving the way for new construction of roads and bridges vital for the expansion. The demolition efforts and relocation of essential infrastructure, including staff offices and the helicopter hangar, are anticipated to conclude by April 2028.

In addressing the financial aspects, Gasa-Toboti confirmed that funding for feasibility studies of the Point Container Terminal has been obtained from the Development Bank of Southern Africa. The TNPA plans to self-finance the required berth and port infrastructure. Furthermore, the process to engage potential operators for the new dry dock has concluded with one company expressing keen interest, setting the stage for the pending request for proposals.

The plans extend beyond the ports' immediate needs to future-proof operations. Proposals encapsulate the Durban Bay Waterfront development, the enlargement of the port entrance channel, the Island View Berth reconstruction, and the development of new container terminals at Maydon Wharf.

A pivotal aspect of the KZN Logistics Hub is the relocation of the South African Navy base from Salisbury Island in Durban to Richards Bay. Preliminary engineering studies for the new base and residential facilities are expected to be completed by October 2024, marking a substantial step in military logistics relocation alongside commercial port improvements.

Richards Bay isn't being left behind, either, as plans include the construction of a new liquified natural gas (LNG) berth—expected to be operational for 25 years under the management of Vopak and TPL Consortium Venture—and the announcement of a preferred bidder for a 6.75-hectare container handling facility set to manage 200,000 TEUs.

The hub's developmental ambitions are complemented by numerous capital expenditure projects such as road extensions, railway improvements, and upgrades to stormwater systems. These projects highlight both ports' commitment to modernization, improved efficiencies, and heightened security measures.

Lastly, amidst the backdrop of ongoing global uncertainties over food and fuel prices, this strategic development by TNPA indicates South Africa's determination to improve its global trade standing, stimulate economic growth, and address energy market challenges with forward-thinking infrastructure investments.