Date: 09/04/2003
Source: Department of Public Enterprises
Title: Radebe: Agreement between ports authority and Aluminium Pechiney on Coega
STATEMENT BY JEFF RADEBE, MP, MINISTER OF PUBLIC ENTERPRISES
PORT OF NGQURHA: AGREEMENT REACHED BETWEEN NATIONAL PORTS AUTHORITY AND ALUMINIUM PECHINEY
Coega is situated about 20 kms north of Port Elizabeth in Algoa Bay. It is a unique development project, completely surrounded by an Industrial Development Zone. The Coega development is one of the government's high priority projects, promising to promote economic growth in the region, sustainable employment, energise industrial development and promote international trade between South Africa and the world. Coega has emerged from sound cooperation between the national government and the Eastern Province administration, consultation with all stakeholders, and with the concerns of environmental issues paramount. Building has already begun and construction works are progressing well. It is also notable that the Coega Development Corporation has also carried out the resettlement of the people to a new area, sensitive to the needs of recreating the sense of community identity. Environmental concerns address not only the question of the coastal ecology, but also the rehabilitation of rare species of flora and the protection of the butterfly that graces the television adverts we are all familiar with.
The Port of Ngqurha is a welcome addition to South Africa's port infrastructure. We are confident that it is a timely addition to Africa's family of ports, particularly at a time when traffic through Africa's ports is increasing faster than global averages, and where ports must play an increasingly strategic role in the implementation of Nepad.
In order to achieve our aims, a number of agreements have been reached to ensure that the project is a success. Normally we would not announce each and every business agreement, as these occur on a daily basis. However, given the importance of Coega to the country and the people of the Eastern Cape, I am pleased to announce today that a series of agreements have already been signed between Aluminium Pechiney from France, and various state enterprises. Today we witness the agreement between the National ports Authority and Pechiney.
In essence, the agreement is designed to ensure that the Port of Ngqurha creates the necessary infrastructure to ensure the port functions at maximum advantage.
The purpose of the agreement between Pechiney and the NPA is threefold. It ensures that the NPA will construct certain port facilities to enable AP to import raw materials and to export finished aluminium products from Coega. The agreement outlines the utilization of the port and lays down conditions of the use of port facilities including the right of use of the land. The agreement also outlines certain commercial benefits that will be derived by both parties to the transaction. The agreement will be for an initial period of 25 years, with an option to renegotiate a further contract period.
The NPA has undertaken to provide:
* Marine Infrastructure, which includes Breakwaters, Access channel, Turning basin, etc
* Berth Infrastructure which is made up of one import berth and one export berth:
--The import berth to be used for unloading raw materials; and
--The export berth that will be used for exporting the finished products
* Land infrastructure, comprising lay-down area access roads and the portion of the conveyor corridor allocated to AP where after the Lay-Down Area will be used mainly for liquid pitch tanks and storage of raw materials and finished products.
Phase 1 of the construction of the Port of Ngqurha began in October 2002. Phase 1 is the construction of: Two breakwaters, Quay walls and dredging work.
1. Two break waters - There are two breakwaters, the Eastern breakwater and the Western breakwater.
The Eastern breakwater is the main one and is 2.7 km long, 21300 dolos units and 30 tons. The secondary or sometimes referred to as the Western breakwater is 1.2km, 5200 dolos units and is also 30 tons.
Construction contracts were awarded on 16 September 2002 and construction commenced a month later. The construction is still in its infancy it is due for completion in November 2005 (3 year period).
2. Quay Walls - Structure that is used to create the berth. There are 5 Quay walls.
Bulk Jetty has 3 berths
Container terminal has 2 berths
3. Dredging Work - work done to ensure water depth. Dredging will commence towards the end of 2003.
4. Sand bypass system - To pump the sand from the western coastline to the eastern coastline of the port. This process is essential because the sand moves from the west to the east and in the cause of the year there is a net movement. Buy building the port the natural movement of the sand is cut off if the sand by passing system is not in place the sand will accumulate on one side and erode on the other side. This system allows sand to bypass the port so that the natural coastal process is not disturbed. This process has started at the beginning of 2003.
5. Landside infrastructure - building of roads, and bridges leading to the port and bulk services (Water, electricity, sewerage and storm water) this process will start in the next few months.
6. Railway lines in the port and conveyer corridor will commence in the 2nd quarter of the years.
A Tariff structure has also been agreed to and comprises four broad groups:
* Cargo dues
* Port dues
* Rental
* Marine Services
The NPA will also provide marine services, such as pilotage, berthing and tug services. Over and above these services AP will be afforded preferential berthing which is demanded by the high volumes of products to be exported over the berth. The parties are committed to meeting the dead lines with respect to the construction timetable and the provision of the necessary infrastructure.
Eskom will invest approximately R2,346 million in electrical infrastructure to serve the smelter. Additional infrastructure investment to provide rail facilities and the extension of a railway line from Coega to the Port Elizabeth network will proceed shortly, at a cost to Spoornet of some R500 million.
The Port of Ngqurha, and the Coega IDZ are well on their way, and we look forward to the success of this major industrial project.
Issued by the Department of Public Enterprises, 9 April 2003
Source: Department of Public Enterprises
Title: Radebe: Agreement between ports authority and Aluminium Pechiney on Coega
STATEMENT BY JEFF RADEBE, MP, MINISTER OF PUBLIC ENTERPRISES
PORT OF NGQURHA: AGREEMENT REACHED BETWEEN NATIONAL PORTS AUTHORITY AND ALUMINIUM PECHINEY
Coega is situated about 20 kms north of Port Elizabeth in Algoa Bay. It is a unique development project, completely surrounded by an Industrial Development Zone. The Coega development is one of the government's high priority projects, promising to promote economic growth in the region, sustainable employment, energise industrial development and promote international trade between South Africa and the world. Coega has emerged from sound cooperation between the national government and the Eastern Province administration, consultation with all stakeholders, and with the concerns of environmental issues paramount. Building has already begun and construction works are progressing well. It is also notable that the Coega Development Corporation has also carried out the resettlement of the people to a new area, sensitive to the needs of recreating the sense of community identity. Environmental concerns address not only the question of the coastal ecology, but also the rehabilitation of rare species of flora and the protection of the butterfly that graces the television adverts we are all familiar with.
The Port of Ngqurha is a welcome addition to South Africa's port infrastructure. We are confident that it is a timely addition to Africa's family of ports, particularly at a time when traffic through Africa's ports is increasing faster than global averages, and where ports must play an increasingly strategic role in the implementation of Nepad.
In order to achieve our aims, a number of agreements have been reached to ensure that the project is a success. Normally we would not announce each and every business agreement, as these occur on a daily basis. However, given the importance of Coega to the country and the people of the Eastern Cape, I am pleased to announce today that a series of agreements have already been signed between Aluminium Pechiney from France, and various state enterprises. Today we witness the agreement between the National ports Authority and Pechiney.
In essence, the agreement is designed to ensure that the Port of Ngqurha creates the necessary infrastructure to ensure the port functions at maximum advantage.
The purpose of the agreement between Pechiney and the NPA is threefold. It ensures that the NPA will construct certain port facilities to enable AP to import raw materials and to export finished aluminium products from Coega. The agreement outlines the utilization of the port and lays down conditions of the use of port facilities including the right of use of the land. The agreement also outlines certain commercial benefits that will be derived by both parties to the transaction. The agreement will be for an initial period of 25 years, with an option to renegotiate a further contract period.
The NPA has undertaken to provide:
* Marine Infrastructure, which includes Breakwaters, Access channel, Turning basin, etc
* Berth Infrastructure which is made up of one import berth and one export berth:
--The import berth to be used for unloading raw materials; and
--The export berth that will be used for exporting the finished products
* Land infrastructure, comprising lay-down area access roads and the portion of the conveyor corridor allocated to AP where after the Lay-Down Area will be used mainly for liquid pitch tanks and storage of raw materials and finished products.
Phase 1 of the construction of the Port of Ngqurha began in October 2002. Phase 1 is the construction of: Two breakwaters, Quay walls and dredging work.
1. Two break waters - There are two breakwaters, the Eastern breakwater and the Western breakwater.
The Eastern breakwater is the main one and is 2.7 km long, 21300 dolos units and 30 tons. The secondary or sometimes referred to as the Western breakwater is 1.2km, 5200 dolos units and is also 30 tons.
Construction contracts were awarded on 16 September 2002 and construction commenced a month later. The construction is still in its infancy it is due for completion in November 2005 (3 year period).
2. Quay Walls - Structure that is used to create the berth. There are 5 Quay walls.
Bulk Jetty has 3 berths
Container terminal has 2 berths
3. Dredging Work - work done to ensure water depth. Dredging will commence towards the end of 2003.
4. Sand bypass system - To pump the sand from the western coastline to the eastern coastline of the port. This process is essential because the sand moves from the west to the east and in the cause of the year there is a net movement. Buy building the port the natural movement of the sand is cut off if the sand by passing system is not in place the sand will accumulate on one side and erode on the other side. This system allows sand to bypass the port so that the natural coastal process is not disturbed. This process has started at the beginning of 2003.
5. Landside infrastructure - building of roads, and bridges leading to the port and bulk services (Water, electricity, sewerage and storm water) this process will start in the next few months.
6. Railway lines in the port and conveyer corridor will commence in the 2nd quarter of the years.
A Tariff structure has also been agreed to and comprises four broad groups:
* Cargo dues
* Port dues
* Rental
* Marine Services
The NPA will also provide marine services, such as pilotage, berthing and tug services. Over and above these services AP will be afforded preferential berthing which is demanded by the high volumes of products to be exported over the berth. The parties are committed to meeting the dead lines with respect to the construction timetable and the provision of the necessary infrastructure.
Eskom will invest approximately R2,346 million in electrical infrastructure to serve the smelter. Additional infrastructure investment to provide rail facilities and the extension of a railway line from Coega to the Port Elizabeth network will proceed shortly, at a cost to Spoornet of some R500 million.
The Port of Ngqurha, and the Coega IDZ are well on their way, and we look forward to the success of this major industrial project.
Issued by the Department of Public Enterprises, 9 April 2003
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