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Richards Bay port boosts economy with new terminal

The project will bring all aspects of warehousing, distribution, manufacturing and shipping all in one location

Posted on June 26, 2024

The Transnet National Ports Authority has awarded a logistics company a 25-year concession to build and operate a container terminal in the Richards Bay port.

Richards Bay port manager, Dennis Mqadi, says it is envisaged that the R285-million container terminal will become operational in 2027.

According to the port’s master plan, the terminal should be able to handle between 50,000 and 200,000 containers per year.

Mqadi says the new container terminal is aimed at servicing the northern parts of KwaZulu-Natal, especially industries around Richards Bay that currently ship containers through the port of Durban.

“This particular project will assist economically the local eastern part of the country by providing this facility, creating employment, and also contributing to the reduction of logistics costs. Particularly, the transportation of containers to Durban and other areas. So they will be able to actually do it locally and assist companies to reduce costs and create local employment.”

Mqadi also says the severe congestion of the N2 last year in the port precinct, with trucks queueing for kilometers to deliver bulk cargo to the port, has been alleviated through a number of measures.

“These include switching more freight to rail, a delivery booking system, a staging area for trucks, and better coordination between the port and companies delivering cargo.”

Mqadi adds that, Grindrod will be required to include traffic solutions in their plans for the container terminal.

“It’s part of the concessionary requirement to do a traffic study and develop different models to ensure the cargo gets taken in and out of the port of Richards Bay. Yes, we acknowledge that we’ve been having difficulties in other logistics aspects, particularly the use of the road. But there are various solutions that have been developed to ensure we enhance the competitiveness of the port of Richards Bay and reduce congestion accordingly.”

Grindrod CEO – Xolani Mbambo – says he believes the container terminal will significantly impact the region’s economic growth


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