FEATURE
Transnet Port Terminal, among other
things, will provide the funding needed to
restore or reconfigure the quayside plant
and equipment and provide efficient rail
capacity for private sector partners.
The East London Grain Elevator,
situated on the West Bank of the Port
of East London, is the largest port
based grain elevator in South Africa
with a potential capacity of 720 000
tons per annum. Currently the facility
handles between 80 000 and 100
000 tons of grain per annum.
Transnet and AFGRI partner for
the operation and maintenance
of Transnet port terminals in
South Africa
T
ransnet SOC Limited has
announced its intent to enter
into a fifteen-year concession
agreement with AFGRI Operations
(“AFGRI’) for the operation and
maintenance of landside operations
with Transnet Port Terminals. In
a press statement released by the
former, the agreement will focus on
two strategic agri-ports in the country,
the East London Grain Elevator in the
Port of East London and the Durban
Agri-Port at the Port of Durban.
This initiative will go in phases
divided to refurbishment, funding,
and marketing projects. Agri-ports are
regarded as strategic facilities for the
country, impacting on critical needs
such as food security, transformation
and long-term growth within
agricultural logistics.
According to media reports, the lack of
capital investment as well as a decline
in market share has pressed Transnet to
look for a private sector partner to turn
these facilities into integrated and efficient
agrilogistic supply chain services.
The fifteen-year contract with AFGRI
will allow the company sufficient
time to recoup its capital investment,
which is currently required to give
the terminals a face-lift and install
the necessary processes to ensure
efficiency. In addition to this, AFGRI will
be in charge of customer engagements,
contracting maintenance, repair and
overhaul of the terminals landside
equipment and plants.
The East London agri-port is a natural
market for maize export originating from
the areas of Kroonstad, in the Free
State and the servicing of the Eastern
Cape milling industry. It also acts as an
overflow terminal for the Port of Durban
during peak harvesting seasons.
This partnership will also further
strengthen Transnet’s road-to-rail
strategy, which is already witnessing
a slight volume increase in the Port
of East London. The Durban Agri-port
is one of the three agri-bulk terminals
in the Port of Durban; the other two
terminals are operated by South
African Bulk Terminals and Bidvest
Bulk Terminals respectively.
The Port of Durban is known for
its excellent road and infrastructure
connections to inland provinces such
as the Free State and Gauteng. The
terminal has an installed capacity of
156 000 tons which translates to 1.8
million tons per annum of capacity
assuming the product is turned every
month of the year. Potential capacity at
the terminal is projected to be between
600 000 to 700 00 tons per annum.
The terminal also has the ability to
handle wheat and soya bean imports
as well as ad-hoc projects on request.
Both AFGRI and Transnet Port Terminal
will be in charge of planning and
scheduling of landside and quayside
operations, health and safety as well
as legal matters. It is intended that the
operations will be integrated from April
2019.
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