Transnet appoints Preferred Bidder for Richards Bay container terminal

Transnet National Ports Authority (TNPA) has appointed Grindrod South Africa as the Preferred Bidder to develop and operate a container handling facility at the Port of Richards Bay, scheduled to become operational in 2027.

This development will enable an increase in the port’s container handling capacity from 50,000 TEU to 200,000 TEU per year, as part of plans to drive improved port efficiency and service levels.

Additionally, this decision is in alignment with the TNPA ports master plan and responds to historical calls from industry for a container terminal in Richards Bay.

The project entails an estimated capital investment of approximately R285 million (US$15.7 million), offering a substantial boost to the region’s container industry.

According to TNPA, the strategic location of the proposed container handling facility will serve the northern parts of KwaZulu-Natal province effectively, providing vital proximity to the hinterland market. Additionally, this positioning is anticipated to lower logistics costs and reduce transportation lead times, benefiting both local and regional economies.

TNPA’s decision to appoint Grindrod South Africa follows the successful conclusion of a Section 56 concession process in terms of the National Ports Act, Act no. 12 of 2005, which began with the issuing of a Request for Information (RFI) and subsequently the Request for Proposals (RFP) to market.