Question NW2278 to the Minister of Public Enterprises

Reply:

According to the information received from Transnet

a) Medium Term Plans

The following infrastructure development projects are intended to materialize in the short- to medium-term and is illustrated below:

a) Land reclamation next to the current iron ore stockyard for the increase of the iron ore stockpile area (short-medium term) as well as additional space for new Liquid Natural Gas (LNG) facilities (medium-long term).

b) LNG Floating Ship Regasification Unit (FSRU) infrastructure connected to the new LNG facilities (extension of land in dunes area and oyster dam reclamation).

c) The existing Mossgas Quay converts to maritime engineering berth together with additional maritime engineering berths as provision for dedicated facilities for rig and ship repair.

d) One additional maritime engineering berth for ship repairs adjacent (southern side) to the break bulk Multi Purpose Terminal (MPT) berths.

e) One additional dry bulk berth adjacent (south) of the new ship/rig repair berth.

f) Break Bulk (MPT) extension towards the north providing one additional Break Bulk (MPT) berth at the Break Bulk terminal.

b) Long Term Plans

The following infrastructure development projects are intended to materialize in the long-term and is illustrated in Annexure B:

a) New proposed land-based LNG storage area inside the port limits.

b) Decommissioning of the LPG Multi Buouy Mooring (MBM) Facility at end of life, and subsequent replacement with fixed LNG and LPG berths (eastern side of the port).

c) Expansion of the Offshore Supply Base.

An aerial view of the port indicating the specific berths that are referred to above are provided in Annexure C.

(i) Development of additional infrastructure for the Port of Saldanha

Background

Future port development is planned for and indicated on the Port Development Framework Plans (PDFP). The PDFP aims to provide a flexible spatial guideline within which the port can develop over the next 30 years. It is defined as a spatial framework within which future port services can be provided.

The planning process comprises of the agreement and alignment of planning objectives, the assessment of the current state of port infrastructure and its associated cargo throughput or functional role, analysis of potential and latent capacity and a comprehensive cargo demand forecast. The outcome of this work defines the temporal and spatial demand for future freight handling facilities, leading to the drafting of several port developments options (PDO). The preferred development is then subjected to further rigorous evaluation in terms of cost benefit analysis, phasing to meet demand, inter-model and other port relationships and opportunity and constraint analyses, leading to the final PDFP.

The following port development framework plans (PDFP’s) are based on the approved 2019 PDFP’s. The 2022 updated PDFPs have been submitted to TNPA head office for approval.

(ii) Maintenance of current infrastructure at the Port of Saldanha

Background

Maintenance of current infrastructure is performed using the Transnet Asset Maintenance Policies and Procedures. This typically follows annual inspections, and identification of short-term maintenance requirements, and budgeted for on a 3 year rolling cycle, using operational budget (OPEX).

For medium term maintenance requirements, these typically are for extensive refurbishment activities, such a midlife refurbishment of assets, or rehabilitation that adds significant remaining useful life to the assets. These are placed onto the Capital investment corporate plan (CAPEX).

Maintenance activities typically have a short to medium term planning cycle that comprises a window of up to ten years.

(a) Short to medium term maintenance plans

At present, there are three main refurbishment programs identified over the 10-year period:

• Refurbishment of Quay and Jetty Infrastructure – which covers Fenders, Mooring Hooks and Concrete repairs;
• Road and Rail Upgrade – which covers 3 phased refurbishment and upgrade projects for the port road network;
• Refurbishment of Main Breakwater and Causeway rock revetments – which covers coastal protection structures critical to the port operation;

Maintenance activities typically have a short to medium term planning cycle that comprises a window of up to ten years. Where assets are identified for replacement due to end-of-life consideration beyond this planning period or where any upgrade as per the original design or intended use becomes applicable, budget planning would consider CAPEX requirements. Such events would normally require significant planning and alignment of operational activities and could be included on the PDFP’s. This would allow for coordinated planning by all stakeholders to ensure minimal impact on operational activities.