OWN CORRESPONDENT, Johannesburg | Friday 10.45am.
GOVERNMENT on Thursday announced a R1,5-billion lifeline to rescue the Coega port and industrial development zone (IDZ) via Portnet.
Business Report reports that Public Enterprises Minister Jeff Radebe described the investment as a “catalyst” to get Coega up and running.
The government also announced that P&O Nedlloyd/TCI, an Anglo-Dutch shipping consortium, has been chosen from three bidders as the private sector partner for the development of the Coega IDZ.
TCI is a London-based infrastructure project development company. P&O Nedlloyd is the world’s third largest shipping company. The report indicates that Ferrostaal, the German steel trading and investment corporation, welcomed the news but warned it was still considering other locations for a R4,8-billion steel mill it would build as an offset investment project in return for the government’s order of three German submarines.
The Ferrostaal investment, the largest proposed for Coega, will be crucial for its success.
The Coega IDZ, a 17 000ha site at the mouth of the Coega river east of Port Elizabeth, will include a deepwater port and industrial development. “The Transnet board’s unequivocal commitment that Portnet will develop the common infrastructure for the deepwater port has allayed any fears that Coega Port would never be built,” Ferrostaal said.