Tanzania’s Bagamoyo $11bn megaport to get flying start

BagamoyoThe government of Tanzania has announced that successful negotiation with Chinese officials will allow work to start on the $11bn Bagamoyo megaport this year, rather than January 2015, as originally scheduled.

The port is to be developed by China Merchants Holdings International, the world largest independent port operators. In the first phase of work, the quay, the container yards, the cargo terminals and all dredging work will be completed by 2017.

These facilities will then be expanded in stages over a period of 30 years, to give an eventual capacity of 20 million containers a year. This is likely to make the port the largest on the east coast of Africa, with a capability to handle roll on, roll off ships and container vessels with a 10,000 TEU capacity (these is, “new Panamax” ships that are too large to fit in the Panama Canal).

Underwriting the development is the discovery of some 200 trillion cubic feet of natural gas, which is going to make the country a leading exporter over the next decade.

Bagamoyo is seen as a Tanzania’s trump card in the sharpening struggle with other east African companies for foreign investment, export markets, industrial development and business from landlocked countries in the interior.

In particular, Tanzania is competing with the Kenyan port of Mombasa for investment and the handling of exports from Uganda, Burundi, Zambia and Rwanda. Although it looks to be in the lead in terms of port infrastructure, Kenya has taken the lead in the development of effective rail links, and Mozambique is closer to bringing its liquid natural gas deposits to market.

When completed, the port will cover about 800 hectares. Around it will be a 1,700 hectare special economic zone. The intention is to encourage set up industries that process or refine Tanzania’s raw materials, such as coffee roasting or ore processing, thereby capturing more of the value chain.

Adelhelm Meru, the director general of the Export Processing Zones Authority, which will be in charge of the zone, told journalists in Dar es Salaam recently that he wanted to attract “industries specialising in value-addition of agricultural products” which he said had been a leading area of investment under the EPZA for the past six years. He said about 55% of industries established under the EPZA dealt in agricultural and textile processing.

The zone is expected to be fully developed by 2024. Source: Global Contruction Review

TPT to operationalise new Post Panamax cranes at Ngqura

Transnet Port Terminals has successfully completed testing of two Liebherr Super Post Panamax cranes at Ngqura Container Terminal, just north of Port Elizabeth. The Ship-to-Shore cranes (STS), which were delivered in January bringing the terminal’s fleet of STS cranes to eight, represent an investment of R150 million by the port operator.

The cranes will improve productivity by increasing Ship Working Hour (SWH) – the number of containers moved by the number of cranes working a vessel in one hour. A total of 78 additional operators have been trained and are ready to operate the equipment. Transnet’s newly formulated Market Demand Strategy will see Transnet SOC Limited invest R300 billion on freight infrastructure over the next seven years. Of this, TPT will invest R33 billion to boost port operations.

The portion allocated for the 600,000 m2 Ngqura Container Terminal includes just under R1.1 billion for its Phase 2 A expansion, which will increase container handling capacity from the current 800,000 TEU to 1.5 million TEU by 2013/14. A further R 808 million will be spent between 2015 and 2019 on the terminal’s Phase 2 B expansion to increase the terminal’s capacity to two million TEU. Source: Porttechnology.org