Boegoebaai port project gains traction with advisory tender

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20-11-2025
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Cape Business News
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PLANS to build a R13,8-billion port at Boegoebaai in the Northern Cape are gaining traction, with the Industrial Development Corporation (IDC) announcing a tender for transaction advisory services for the project.

The Boegoebaai Port Development, which will be located 20 km from the border with Namibia,  is a joint project between the IDC, Transnet, and Infrastructure South Africa (ISA). The port’s goal will be to act as an additional export point for the mining sector and a possible green hydrogen hub on South Africa’s west coast.

The development includes a deep-water port comprising a dry bulk export berth and a break bulk berth. A new 550 km rail line connecting the new port to existing rail infrastructure in the Northern Cape is also envisaged.

The announcement of the transaction advisory services tender follows Transnet shortlisting Boegoebaai Port & Rail Consortium, Boegoebaai Development Consortium, and Project Elephant Consort, in July 2023 to submit proposals for the design, funding and construction project.

The nine-month advisory contract will see the winner provide advice on legal, commercial, financial, and technical transaction services, so as to enable the successful procurement and commercialisation of the development of the port.

For years, the development of the project had seemingly stalled, but the announcement of this tender, coupled with its designation as one of ISA’s top seven infrastructure projects requiring urgent support, has provided it with much-needed impetus.

The ISA is the central government agency responsible for coordinating and driving the national infrastructure investment programme, with the intent of improving infrastructure investment and delivery.

The creation of a port is expected to have a significant impact on the economic development of the Northern Cape. During construction, which is estimated to take between three to four years, about 3,000 direct jobs will be created, along with about 14,000 indirect jobs.

Once the construction of the port is completed, 400 permanent jobs will be needed to manage the port. Over time, an estimated 13,770 jobs could be created in the region.

This will be a much-needed boost to the Northern Cape government, which has sunk deeper into poverty.

In a presentation to Parliament in July, the Northern Cape said poverty in the province worsened significantly between 2014 and 2024, with the number of individuals living below the upper poverty line increasing by 33,84%, from 611,000 in 2014 to 817,000 in 2024.

“The percentage of the population living in poverty rose from 51,48% in 2014 to 59,23% in 2024, an increase of 7,75 percentage points. This trend indicates a growing challenge in addressing poverty, reflecting potential economic stagnation, rising costs, or insufficient social interventions,” it said.

Aside from being an export hub for green hydrogen and minerals like manganese, the port is also envisioned to allow for the importing of diesel.

The proposed port is also being looked at as a base for the gas and oil efforts off the West Coast. The Northern Cape government told Parliament that studies are being undertaken by SHELL, Total and PetroSA.