New harbour to be dug out at old Durban airport

the planned durban dugout port at the old airport site is expected to cost r50 billion in its first phase of development and construction needs to start by 2015 for it to be ready by 2019.

that's the word from transnet chairman mafika mkwanazi, who was speaking to the mercury on the sidelines of the durban invest business breakfast in the city yesterday.

a transnet graphic shows the site of the planned dugout port at the old durban airport site in proximity to durban?s current harbour, which itself could be expanded with proposals to dig out the bayhead area. also shown are proposed dedicated freight routes and an upgraded rail corridor to the two ports.

"we have to develop the dugout port at the old airport to meet future demand and ensure durban remains the busiest port in africa... this mega project is going to happen; it is just a matter of transnet securing the land from the airports company south africa (acsa) and getting the necessary approvals," he said.

transnet chief executive brian molefe said negotiations to buy the airport site were at an advanced stage.

"we have been throwing numbers back and forth with regards to a price for the site. negotiations are ongoing and we still have to agree on a final price. the dugout port is a multibillion-rand project, but the entire capital required would not come from just transnet or the government; we are looking at the private sector to participate in the project.

"there is an opportunity here for the private sector to both invest in the dugout port project and also possibly be involved in the new ports operations... this could be a public-private partnership. the private sector needs to play a role," he said.

mkwanazi said that the current durban port was expected to reach capacity by 2019/2020 based on growth forecasts of container traffic.

"we need to start construction on the dugout port by 2015 to complete the first phase of the project by 2019, when container capacity at the current durban port is expected to be reached. phase 1 of the dugout port project is expected to cost about r50bn. however, a further phase would mean that at least r100bn would be invested in its development over the long term," he said.

mkwanazi said he was one of the chief negotiators for the airport land together with durban businessman don mkhwanazi. negotiations first started in 2008.

"we are not only talking to acsa to buy the airport site. we are also negotiating with other adjoining landowners such as the public works and the defence departments as well as private businesses.

"we are looking at the broader area to better plan for the long term. it is part of our broader 2050 vision for durban and south africa in terms of port, rail and logistics master planning," he said.

public enterprises minister malusi gigaba said the government had big dreams for the durban port, which was crucial to the economic growth and competitiveness of not just kwazulu-natal, but the country as a whole.

"our long-term ambitions for growth are not going to be fulfilled with the current durban port," gigaba said.

"both transport minister sbu ndebele and i realise this and we want them (transnet and acsa) to reach a sale agreement by the end of the year. we are taking the matter very seriously and are facing pressure from kwazulu-natal premier zweli mkhize to get finality on the matter."