The Port of East London’s car terminal has been doubled, now allowing two full-size vehicle carrier vessels to dock simultaneously.
Previously, the smaller terminal only allowed one ship to dock at a time.
The Port of East London is used by Mercedes-Benz and various other automakers in the country to import and export vehicles to and from overseas markets.
The Mercedes-Benz factory, which is responsible for manufacturing the C-Class Sedan, is located a stone’s throw away from the port, with thousands of units making their way through the waters every year.
The expansion of the Port of East London cost in the region of R60 million and spanned approximately 15 months, creating over 50 employment opportunities for local community members.
“[The upgrade] means the Port of East London can now dock two big [car] carriers,” Sphiwe Mthembu, East London Port Manager, told SABC News.
“Those carriers, when they come to the port, they have a high spin-off of economic activities. I’m talking here in terms of the people that will be working the cargo on those two vessels.”
Princess Faku, executive mayor of the Buffalo City Metro, is positive that the port expansion will bring significant investments to the city.
“People could not invest before because of complaining of smaller vessels only coming in, but now it can take more vessels, and big ones, so we’re indeed excited on the capacity which Transnet has brought to our city,” said Faku.
“This is going to be something that will boost our economy.”
Faku added that the larger port should also contribute to increased agricultural shipments.
South Africa’s ports going private
Government recently issued a Request for Information (RFI) to gauge private sector interest for partnerships on South Africa’s notoriously inefficient ports and freight rail lines.
The RFI includes the ports of Cape Town, Durban, Ngqura, and Richards Bay, but at the moment, not East London.
Private participation in the country’s ports and railways is vital to economic growth, as the City of Cape Town notes that government currently does not have the finances to properly invest in the important infrastructure, and that it can’t raise such large sums without further increasing taxes.
Research from the Western Cape Department of Economic Development and Tourism shows that private sector participation just at the Port of Cape Town alone could result in an additional R6 billion in exports, the creation of approximately 20,000 jobs, and over R1.6 billion in additional tax revenues within five years.
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