Transnet Port Terminals has embarked on its strategic intent of venturing into operations beyond South African borders through their partnership with multi-discipline construction and engineering group Aveng.
The two conglomerates recently signed a memorandum of understanding that seeks to explore new and existing opportunities of expansion and operating terminals in Tanzania, a country located in East Africa considered a global growth point. New ports and terminals are currently under development in Tanzania. The country enjoys a healthy relationship with SA and is an avenue for increased Africa trade that considers landlocked countries and their requirements. Their annual growth rate has averaged 6.7% since 2006, one of the best in sub-Sahara Africa where gold earnings have been rising, and the find of a major offshore gas field is promising.
Transnet Port Terminals Head of Strategy Moshe Motlohi said “Part of Transnet Port Terminals intentions include venturing into Africa and global operations to increase our footprint as a port operator”. He added that the chairmanship of the President Jacob Zuma in the NEPAD North South Corridor and current plans to link Durban and Dar es Salaam for improved connectivity, made Tanzania the perfect venture. Both Transnet Port Terminals and Aveng have submitted an expression of interest jointly to operate seven berths in Mtwara, Tanzania – a city on the boundaries of Mozambique. According to Chief Executive Karl Socikwa, “Transnet’s market demand strategy has enabled us to thoroughly consider and act upon Africa’s regeneration. Seven of ten growth points in the world are in Africa, skills exist and it is up to Africa to convert itself into one of the fastest growing and strongest economies in the world”. He added that Transnet Port Terminals intentions were to venture into global operations, enhance and grow its skills base and integrate into the supply chain.
The expression of interest precedes the process of requests for proposals. Tanzania is the beginning but, one of seven existing opportunities that will see Transnet Port Terminals further its mission to handle commercial import and export of cargo globally.