South Africa's Saldanha Port to Undergo $840 Million Expansion to Service Oil and Gas Rigs

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Oil rigs operating off the west and east coasts of Africa will be served by new projects that were announced by South Africa's Transnet National Ports Authority (TNPA). Infrastructure projects, with a total investment of about $840 million, will improve TNPA's ability to contribute more meaningfully in the oil and gas sector.

Saldanha Bay Port Manager Willem Roux said about 120 oil rigs pass South Africa's coastline annually, but the majority of these are unable to obtain services in Saldanha, as the port is not equipped to meet the demands of the sector. The port now will be geared to capture the opportunity in face of potential competition from other African ports.

The TNPA will invite private-sector participation in the projects, which will include the construction of a new rig repair quay, 380 meters long and 21 meters deep, which will cater to the extra depth of modern rigs. The quay will be able to service two rigs at the same time.

The existing Mossgas quay will be lengthened from 38 meters to 500 meters, with a depth of 8.5 meters to handle floating docks. This will enable the building of new service vessels to support the offshore Oil & Gas Industry. The investment will cover the procurement of specialized equipment.

An offshore supply base will be built to provide a one-stop shop to supply rigs with basics such as food, materials and waste collection.

Schedules for the project will be fast-tracked. The TNPA hopes to have a successful private bidder for the projects, perhaps on a build, own, operate and transfer (BOOT) basis, by September, with a view to the three projects being commissioned by December 2017.The offshore supply base will be completed before the three projects.

The TNPA will be closely involved in the design, location in the industrial development zone (IDZ), planning of the projects and with environmental impact assessments (EIAs). An estimated 6,300 new direct jobs and 25,200 indirect jobs will be created, and $4.74 billion will be contributed to gross domestic product (GDP).

Currently, Saldanha operates mainly as an iron ore export point for the ore from Northern Cape province. There are plans to raise iron ore exports from about 57 million tonnes to more than 70 million tonnes annually. Negotiations are taking place concerning the environmental impact of red iron dust and its suppression.

For related information, see April 9, 2014, article - Strategic 13-Million Barrel Oil Blend and Store Terminal Located on South Africa's West Coast, and October 9, 2013, article - Western Cape's LPG Shortages Met by $130 Million Open Access Terminal.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.