Transnet could soon be forced to expand the East London port to cater for expected growth in production at the Mercedes-Benz SA plant.
If Transnet does not do the infrastructure work, the city’s “preferred” site status within in the worldwide Daimler network could come under pressure.
In an overview presentation to the Dispatch by Transnet’s East London port manager, Jacqueline Brown, it was noted that one of the challenges facing the port was its reliance on one customer (MBSA) which was “vulnerable and susceptible to market conditions and global trends in the automobile sector”.
It was explained that these trends could increase “dwell” times at the car terminal, which negatively affect the harbour’s critical performance and volume record.
Brown said: “The car terminal is operated by Transnet Port Terminals (TPT) and the parkade is also under their ownership. TNPA is working closely together with MBSA and other related service providers to ensure that the volume throughput demand is met. In terms of meeting volume demand, the efficiencies of the existing port facilities are first optimised before any extension of facilities are provided.”
Deputy Finance Minister, Mcebisi Jonas, also the former provincial MEC of economic development, environmental affairs and tourism, and MEC of finance, told the Dispatch earlier this month the automobile industry was central to the fate of the harbour and that some privatisation and new infrastructure at the harbour was in the pipeline affecting automotive and grain operations.
In a carefully worded reply to Dispatch questions, MBSA CEO and executive director of manufacturing, Arno van der Merwe, hinted at a possible increase in production at the plant.
While the space provided by the car and container terminals at the harbour was sufficient now, he said: “Should the production of Mercedes-Benz vehicles grow in the near future, it would be come necessary to consider some expansion.”
On the issue of the container berth, he said the river port was limiting the size of vessels allowed to berth here.
MBSA was in discussions with Transnet over about the two terminals, he said. — mikel@dispatch.co.za
MBSA may need bigger harbour
If Transnet does not do the infrastructure work, the city’s “preferred” site status within in the worldwide Daimler network could come under pressure.
In an overview presentation to the Dispatch by Transnet’s East London port manager, Jacqueline Brown, it was noted that one of the challenges facing the port was its reliance on one customer (MBSA) which was “vulnerable and susceptible to market conditions and global trends in the automobile sector”.
It was explained that these trends could increase “dwell” times at the car terminal, which negatively affect the harbour’s critical performance and volume record.
Brown said: “The car terminal is operated by Transnet Port Terminals (TPT) and the parkade is also under their ownership. TNPA is working closely together with MBSA and other related service providers to ensure that the volume throughput demand is met. In terms of meeting volume demand, the efficiencies of the existing port facilities are first optimised before any extension of facilities are provided.”
Deputy Finance Minister, Mcebisi Jonas, also the former provincial MEC of economic development, environmental affairs and tourism, and MEC of finance, told the Dispatch earlier this month the automobile industry was central to the fate of the harbour and that some privatisation and new infrastructure at the harbour was in the pipeline affecting automotive and grain operations.
In a carefully worded reply to Dispatch questions, MBSA CEO and executive director of manufacturing, Arno van der Merwe, hinted at a possible increase in production at the plant.
While the space provided by the car and container terminals at the harbour was sufficient now, he said: “Should the production of Mercedes-Benz vehicles grow in the near future, it would be come necessary to consider some expansion.”
On the issue of the container berth, he said the river port was limiting the size of vessels allowed to berth here.
MBSA was in discussions with Transnet over about the two terminals, he said. — mikel@dispatch.co.za
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos