The Civil Engineering Contractor July 2018 | Page 7

ON PROJECT OWNERS’ DESKS
Economists predict
amended Mining Charter
will boom mining sector
Design phase for R200m Durban
cruise terminal imminent
Project: Marine, cruise terminal
Client: Private sector
Location: Port of Durban
A new ‘green’ and energy efficient R200-million-plus cruise
terminal at the entrance to the Port of Durban entered
design phase in April, with the 18-month construction phase
due to commence in January 2019. The new terminal is
anticipated to commence operations in October 2020, at the
start of the 2020/21 cruise season.
The new cruise terminal aims to position Durban as a
‘smart’ port city and world-class cruise capital. It will enable
simultaneous embarkation and disembarkation of passengers
from multiple vessels, with parking for 200 vehicles, kerbside
drop-off facilities for 12 buses, dedicated drop-off areas for
baggage, separate screening and temporary waiting areas, as
well as separate passenger entry and exit facilities.
The new terminal could attract larger vessels and cruise
liners to South Africa, potentially extending the cruise season
serving the global USD40-billion/year industry. Cruise
vessel calls to Durban are projected to increase from 60 a
year to more than 150 a year by 2040, with the number of
passengers expected to commensurately more than triple
from 200 000 a year to over 700 000 a year.
Transnet National Ports Authority has signed an agreement
with a consortium known as KwaZulu Cruise Terminal
(KCT) that will see the latter proceed with construction of
the terminal. KCT, which was declared the preferred bidder
for the 25-year concession project in May 2017, is 70%
owned by MSC Cruises, the largest cruise line operating in
South African waters, and 30% by a BEE partner.
The official signing of the agreement had initially been
expected to occur before end-2017 but had taken longer
than expected due to the scale of the intended greenfield
project. The detailed design phase of the terminal will take
nine months to complete from April and will include Zulu
symbolism.
Investors estimate there could be as much as an 80%
increase in investment in the mining sector as a result of
a more predictable mining policy, according to Chamber
of Mines’ chief economist, Henk Langenhoven. This could
have a commensurate spill-over impact on infrastructure
roll-out.
An amended Mining Charter, due to be released in May,
could revitalise investment in the R230-billion mining
industry, which has hitherto been plagued by depressed
prices and policy uncertainty. Despite this, it continues to
contribute a hefty 7.48% to GDP, and greater certainty
regarding the charter is bound to enhance investor
confidence and a corresponding increase in civils projects.
Relations between the mining industry and the mineral
resources ministry have been frosty over the past year over
an impasse on the charter. This detracted from investment
into the sector, blocking stronger growth.
Addressing the policy impasse on the Mining Charter is
key to unlocking much-needed investment in the South
African mining industry. In April, mineral resources
minister Gwede Mantashe said that engagements with
stakeholders about the charter had largely been finalised
and that a new charter would be released at the end of May.
The Chamber of Mines registered a rare victory in
April when the High Court upheld the Chamber’s
interpretation of the once-empowered, always-empowered
principle, which had bedevilled relations with Mantashe’s
predecessor, Mosebenzi Zwane. The High Court held that
mining companies could claim recognition for prior BEE
transactions under which they had reached the industry’s
26% ownership threshold. This was notwithstanding the
empowerment partners having subsequently cashed in
their stake.
Mineral resources minister Gwede Mantashe says the Mining
Charter could be released by the end of May.
The Port of Durban prepares for the tripling of cruise liners.
CEC July 2018 - 7