"This is substantial for such a relatively underdeveloped area, which is currently heavily reliant on the motor industry," Jeffrey said.

He added that the development could also lead to a permanent increase in skills in the economy, particularly in local communities.

"It would affect a substantial number of people faced with few alternatives in a province with an extremely high unemployment rate, which has been measured in excess of 25 percent. The unemployment rate in adjacent Greater Motherwell has been placed at over 30 percent." Motherwell is a sprawling urban settlement outside Port Elizabeth that also forms part of the Nelson Mandela Metro.

The port development will also directly create employment in the region. Transnet Port Terminals said in a statement that R4-billion ($490-million) invested by 2002 created employment for 50 627 people ? the equivalent of 12.6 jobs per R1-million ($123 000) invested.

For the R5.1-billion ($625-million) spent by 2007, 66 213 jobs had been created, this time 12.9 jobs for each R1-million invested. To date, almost R9.8-billion ($1.2-billion) has been invested in the Ngqura port.

An inflow of skilled people

The port development also holds positive secondary benefits for other product groups such as agriculture, fishing, construction, transport (including storage), financial and business services, electricity and gas as well as wholesale and retail business.

Jeffrey pointed out that Coega and its port is ideally located to kick-start local and regional economic development of the area. He explained that some of the planned projects within the Coega development are capital-intensive and technologically advanced. This will result in an inflow of skilled people to the province and substantial education, training, upgrading of skills and development of small businesses.

"This will contribute to population growth and wealth generation, the benefits of which flows down into the less skilled population," he said. The developments will also cause an increase in purchasing power, as the average remuneration per worker of such large projects is generally higher than the region's average.

He cites Richards Bay as an example of the Coega's potential impact in the region in years to come. Richards Bay evolved over a period of 30 years from a small fishing village into one of South Africa's premier industrial districts. Today, together with the nearby town of Empangeni, it has a total population exceeding 50 000. The area has over 5000 businesses, is the third most important region in KwaZulu-Natal and has had an economic growth rate higher than the average for the country and the province.

"This gives an indication of the type of expansion that can take place once the initial key industries are in place and act as a nucleus or a magnet, which can attract other upstream and downstream industries," Jeffrey said.

Power tugs

Transnet has also announced that the deep-water port is expecting the delivery of one of its three new tugboats in mid-October this year. Currently, it is undergoing sea trials in the Port of Durban. An additional two new tugboats will also be delivered in April and May next year. Each tugboat has an approximate cost of R120-million, and capable of a 70-ton bollard pull. They are regarded as the most powerful harbour tugs in South Africa.

Rail operations

Rail operations at the new port have also received a stamp of approval. In September, Transnet Freight Rail (TFR) ran a test train on the Ngqura main line, and was declared safe for operations.

According to a statement from TFR, this is an important step in preparation for the planned commercial launch of the new port and its container terminal this month. TFR is still confident that all its operations are on target for the completion of the Ngqura rail terminal, marshalling yard, and main line construction to the hinterland. There are currently four operational lines in the marshalling yard and the remaining five should be available by March next year. The new marshalling yard infrastructure can accommodate up to six trains daily per direction, and the hinterland will have a design capacity of two trains per day. The hinterland capacity will be increased as volumes increase, depending on financial and business viability.

The rail route will connect the new port to the City Deep rail terminal in Johannesburg in Gauteng province via Beaconsfield in the Northern Cape. Transnet has refurbished 400 container wagons and will utilise its 7E locomotive fleet for traffic on the line, which has a designed capacity of six trains per day, each with 50 wagons.

MediaClubSouthAfrica.com