China has shown a keen interest in the economic potential of the East London port. Yesterday, a delegation from Yubei district and Chongqing was told that the port was earmarked for a multibillion-rand facelift, which will see its capacity enhanced significantly.
EL Ports Authority spokesman Terry Taylor said the cost of the development, which will take five to seven years, was estimated at R2.9-billion.
Taylor said the development would allow “larger vessels to call at the port of East London, creating additional shipping opportunities and further unlocking economic business opportunities to local industries and any potential investors”.
Presenting the plan to a 10-member Chinese delegation, as well as metro mayor Xola Pakati at the East London harbour on Wednesday, the port’s head of customer relations, Dirk Botes, said the development would enable growth in volumes, expand business at the port and have a positive socio-economic impact on the city.
The 1.3-million m² port has seven terminal operators, one commercial berth, a ship repair facility, two tugs and a work boat.
The port primarily handles industrial and agricultural cargo, with a particular focus on the local automotive industry, but is severely restricted in both width and depth, which limits opportunities for future cargo handling.
Botes said the plan was to deepen and widen the port’s entrance known as channel 6. The development would also include:
- Replacing Buffalo Bridge;
- Repairing Quay 3; and
- Upgrading port security.
Both the east and west banks of the river port are set for an upgrade.
“We are looking at extending Latimer’s Landing and extending the jetty.”
The Chinese delegation was led by the Yubei district mayor, Tang Chuan.
The municipality has a twinning agreement with Buffalo City Metro.
Cross-questioning Botes during his presentation, Chuan asked what kind of funding – both private and state – was needed.
Botes said the existing infrastructure was state-funded and any private funding to make the plan a reality would be most welcome.
Pakati said the metro was excited about the positive feedback from the Chinese delegation.
“We are hoping that many companies from the Yubei district and Chongqing will follow in the steps of many other Chinese companies who have made South Africa their home,” he said, adding that economic growth in the metro remained subdued with gross value-added growth between 1995 and 2015 standing at 55%.
“Our GDP is just under R70-billion, meaning that we contribute about 1.5% to national GDP and about 20% to provincial output.”
One of the core drivers of BCM’s low levels of output and employment growth since 1995 are the low levels of investment,” said Pakati.
He said the metro’s economy was heavily dependent on the automotive sector, anchored around Mercedes-Benz SA, and government services and this brought “high levels of risk for our city should circumstances change for the worse in these sectors.
“We are trying to implement initiatives and programmes which will properly diversify our economic base and create a positive trade balance.
“This cooperation for us is indeed a matter of necessity,” the mayor added.
EL Port buoys China delegation
EL Ports Authority spokesman Terry Taylor said the cost of the development, which will take five to seven years, was estimated at R2.9-billion.
Taylor said the development would allow “larger vessels to call at the port of East London, creating additional shipping opportunities and further unlocking economic business opportunities to local industries and any potential investors”.
Presenting the plan to a 10-member Chinese delegation, as well as metro mayor Xola Pakati at the East London harbour on Wednesday, the port’s head of customer relations, Dirk Botes, said the development would enable growth in volumes, expand business at the port and have a positive socio-economic impact on the city.
The 1.3-million m² port has seven terminal operators, one commercial berth, a ship repair facility, two tugs and a work boat.
The port primarily handles industrial and agricultural cargo, with a particular focus on the local automotive industry, but is severely restricted in both width and depth, which limits opportunities for future cargo handling.
Botes said the plan was to deepen and widen the port’s entrance known as channel 6. The development would also include:
Both the east and west banks of the river port are set for an upgrade.
“We are looking at extending Latimer’s Landing and extending the jetty.”
The Chinese delegation was led by the Yubei district mayor, Tang Chuan.
The municipality has a twinning agreement with Buffalo City Metro.
Cross-questioning Botes during his presentation, Chuan asked what kind of funding – both private and state – was needed.
Botes said the existing infrastructure was state-funded and any private funding to make the plan a reality would be most welcome.
Pakati said the metro was excited about the positive feedback from the Chinese delegation.
“We are hoping that many companies from the Yubei district and Chongqing will follow in the steps of many other Chinese companies who have made South Africa their home,” he said, adding that economic growth in the metro remained subdued with gross value-added growth between 1995 and 2015 standing at 55%.
“Our GDP is just under R70-billion, meaning that we contribute about 1.5% to national GDP and about 20% to provincial output.”
One of the core drivers of BCM’s low levels of output and employment growth since 1995 are the low levels of investment,” said Pakati.
He said the metro’s economy was heavily dependent on the automotive sector, anchored around Mercedes-Benz SA, and government services and this brought “high levels of risk for our city should circumstances change for the worse in these sectors.
“We are trying to implement initiatives and programmes which will properly diversify our economic base and create a positive trade balance.
“This cooperation for us is indeed a matter of necessity,” the mayor added.
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