/ 11 May 2007

Shipbuilders to lose orders over Durban harbour plans

The shipbuilding industry is set to lose a £300-million (R2,8-billion) order to build between 12 and 15 offshore supply vessels because Durban’s shipyard could be engulfed by Transnet’s plans to build a new container terminal, Business Report said on Friday.

Prasheen Maharaj, the chief financial officer of Southern African Shipyards, said: ”We are close to signing an order to supply 12 to 15 vessels to be built over six to seven years — but we cannot take the orders because of uncertainty around the shipyard.”

Transnet has proposed building a new container terminal at the southern side of the Durban port, which would quadruple the harbour’s container handling capacity.

Another business that might be affected is Elgin Brown & Hamer, which repairs ships. The company declined to comment.

National Ports Authority spokesperson Jyothi Naidoo said recently: ”If the proposed development does not take place, Durban’s port would run out of container handling capacity by 2010 at current growth rates.”

The port handled 2,2-million twenty-foot equivalent unit (teus) last year, up 18% on 2005.

A new container facility, Pier One, opens this month and by the end of the year will be able to handle 720 000 teus annually.

The public consultation process has already begun and construction of the proposed terminal, if given the green light from environmental authorities, could start in 2010. – Sapa