By Nangamso Mabindla
19 January 2005

THE NATIONAL Port Authority is considering expanding the container terminal facilities at East London's harbour in an effort to make it more competitive.

The expansion project is expected to cost R600-million.

According to the NPA's corporate affairs manager, Terry Taylor, the port uses some 60 percent of its capacity. "The 40 percent available for further expansion is quite high," Taylor says.

This means that the terminal, which currently sees some 100 000 containers processed a year, will be able to deal with 400 000 - a fourfold increase.

"With the anticipated growth in the economy of the city, we believe expansion is necessary," he adds. "There are exciting times ahead for the port and the city's economy."

Buffalo City has seen an economic upsurge in the past year, with motor manufacturer DaimlerChrysler expanding its operations and the East London industrial development zone continuing to grow.

DaimlerChrysler last year awarded the city's West Bank plant the rights to manufacture the next generation Mercedes Benz C-Class.

The DaimlerChrysler East London plant currently produces 55 000 vehicles a year, of which more than 40 000 are right-hand drive Mercedes-Benz C-Class sedans. Seventy five 75 percent of the C-Class production is exported to several foreign markets with the UK, Japan, Australia and other Pacific Rim countries receiving the bulk.

With the production of the new model expected to start in early 2007, the West Bank plant will have to extend its capacity.

This then will have a knock-on effect. "We'll need to improve our facilities in order to meet Daimler's demands when they start manufacturing the car," says Taylor.

The positive outlook for the city's development zone in the West Bank, the East London IDZ, also influenced the port authority's decision to expand the East London harbour facilities.

"The expansion will not only see an additional container stacking area but also an increased draft from the current 12, 5 meters," says Taylor.

Currently, the port does not have gantry cranes, hampering shipping opportunities. "Ships have to bring their own gantry cranes when they come here," says Taylor, adding: "When we have our own they will not have to bring theirs and this will definitely improve our shipping opportunities."