Transnet National Ports Authority (TNPA) on Tuesday signed an agreement with Grindrod Eyamakhosi Joint Venture to develop and operate a container handling facility at the Port of Richards Bay’s Bayvue precinct.
TNPA said that the development of this container handling facility was part of its master plan for KwaZulu-Natal ports, which reconfigures the Port of Richards Bay to enhance its capacity for handling containers and liquid bulk commodities.
The investment, worth R285 million, is set to increase the port’s container handling capacity from 50 000 twenty-foot equivalent units (TEUs) to 200 000 TEUs per annum.
As South Africa’s premier bulk port, Richards Bay has capacity to handle significant volumes of coal, dry, break and liquid bulk commodities and accommodates containers.
Designed to drive economic development in the northern parts of KwaZulu-Natal, TNPA said this strategic initiative will realise the expansion of the port’s cargo profile.
TNPA added that the container facility’s location was close to the hinterland market and aligned with Transnet’s commitment to lower logistics costs whilst reducing transportation lead times for the benefit of both local and regional economies.
Transnet board chairperson, Andile Sangqu, said the partnership between the two entities reflected Transnet’s ongoing commitment to enable and unlock capacity through well-regulated private sector partnerships.
Sangqu said that the R285m capital injection by Grindrod Eyamakhosi was a clear demonstration of confidence in this model.
“It reflects a new era where Transnet enables, facilitates, and governs – as we unlock capacity through well-regulated private sector partnerships. From a logistics perspective, Richards Bay is strategically positioned to serve the northern KZN hinterland, which is an area with untapped potential and significant demand for integrated freight solutions,” he said.
Sangqu said this container facility will reduce road congestion from Durban, shorten supply chain lead times, and ultimately lower logistics costs.
“In short, the establishment of this facility will enhance the efficiency, resilience, and competitiveness of our national freight system,” he said.
“The establishment of this facility is now critical as Transnet implements its strategic framework ‘Reinvent for Growth’ to restore operational excellence, enhance the competitiveness of the national freight logistics network and unlock long-term value for industry stakeholders. This project represents a blueprint where commercial growth, community benefit, and inclusive development co-exist.”
The signed agreement follows the successful completion of Section 56 of the National Ports Act process, through which TNPA awarded Grindrod Eyamakhosi a preferred bidder status in June 2024 for a 25-year concession period.
Once operational, the facility will incorporate the latest technology and feature specialised infrastructure equipment designed for efficient cargo handling to ensure quick turnaround of vessels.
Following the commercial operationalisation of the container facility in 2028, TNPA said the project was expected to create approximately 122 permanent jobs for the benefit of the Richards Bay local community.
Xolani Mbambo, CEO of Grindrod, said their investment in this project supported Grindrod’s purpose of enhancing Africa’s trade and impacting local communities.
“Partnering with Eyamakhosi provides valuable local insights and authenticity to our empowerment efforts. We aim to create a smart logistics hub for efficient movement of goods across rail, road, and sea, fostering regional economic integration and reducing logistics costs,” Mbambo said.
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