Nompumelelo Magwaza
THE TRANSNET National Ports Authority (TNPA) is going ahead with its plans to spend R9.7 billion to beef up its oil and gas infrastructure at its port of Saldanha Bay despite the fall in the oil price.
Transnet has put out a R9.7bn tender that will see the construction of the “wet” and “dry” infrastructure in the Saldanha Bay port.
The wet and dry infrastructure will include work done on land and work involving the deepening and lengthening of the berths.
Of the R9.7bn, R6.5bn will go towards wet infrastructure and R3bn will be used for land infrastructure, also referred to as dry infrastructure.
The remaining R200 million will be channelled towards the offshore supply base.
The port’s key facilities include an iron ore export terminal and a multi-purpose port.
The development of the oil and gas facilities is part of the government’s Operation Phakisa initiative, which seeks to unlock economic potential through the ports and and other various sectors.
TNPA is set to fast-track the Saldanha Bay projects with a successful bidder for these projects to be announced in September.
Yesterday the authority said it was not too concerned about the weakening oil prices.
Earlier this month, Brent crude fell as low at $45.19 (R517) a barrel and was yesterday quoted at $48.71 by 5pm.
TNPA said this would not threaten the appetite for oil in the local economy. Instead it said oil and gas opportunities were available in Africa, particularly in new exploration blocks, pipeline engineering, as well as onshore and offshore maintenance among others.
With this in mind the port authority was seeking private players in the construction of a rig repair quay at berth 205, an expansion of the Mossgas Quay and an offshore supply base.
Willem Roux, the Saldanha Bay port manager, said yesterday that the port authority would have to commit to Operation Phakisa’s timelines.
He said besides concerns about falling oil prices, the port authority, like the government, felt it was the right time for such investments.
The construction of the new rig repair for berth 205 will accommodate two rigs at a time. The Mossgas Quay wall will be expanded from 38 metres to 500m with the depth of 8.5m. Both the projects will be commissioned in 2018.
“We have committed to the target dates and we would like to remain involved in the design and location of these facilities so that it forms part of the port plan developments and it does not lose touch with what we have planned. Transnet will be an integral (part) of this process together with a successful bidder,” Roux said.
TNPA said this would not have any affect on the port’s bread-and-butter business – the iron ore industry.
“The developments that are taking place now will not compromise future development in terms of potential iron ore expansions that have been planned for the port.”
TNPA chief executive Tau Morwe said what Operation Phakisa did for the port authority was to create a sense of urgency for its port development plans.
He seemed confident that the strong partnership with the Saldanha Bay industrial development zone would attract investors quickly.
SA Oil and Gas Alliance chief executive Ebrahim Takolia said the whole reason for a supply base for oil and gas in this region was because of all the activity in Africa.