Nelson Mandela Bay executive mayor, Danny Jordaan, has thrown down the gauntlet to Transnet saying the parastatal holds the key to unlocking the economic potential of the Metro.
He called for the removal of the manganese ore dumps and fuel tanks from the port of Port Elizabeth to be made a national priority.
In a hard-hitting speech at the unveiling of new projects in the Port of Nqqura on Wednesday, Jordaan said the Metro area had been historically underdeveloped by the apartheid government in favour of other areas like Saldanha and Richards Bay.
Aiming his comments at Transnet management, Jordaan said his city administration wants to engage with Transnet on issues of investment.
"I'm very happy that we are here and we are seeing progress and growth in the Port of Ngqura, but we want to engage you (Transnet). You made a very important point that you hold the future of economic growth here in this Metro. You must not underestimate your role because this Metro has two ports. You control the future growth and opportunities in both those Ports," Jordan said.
He said there cannot be economic growth "unless we align our vision with your timeframes."
"..this area as you know the 1820 Settlers came here. At that time there was no Richards Bay, there was no Saldanha Bay. Those two ports have overtaken us. The port of Port Elizabeth, the port of Ngqura and the port of East London, the number of berths combined, 13 in PE and 11 in East London, combined is smaller than Richards Bay, it's smaller than Saldanha Bay."
"Secondly, historically the area of the Eastern Cape was deliberately denied investment through the 300 years of apartheid. And, this is a matter that we want to deal with you as Transnet on this question. It is a very important matter. And, we are meeting your leadership and we're certainly going to raise this thing. In this country there are eight commercial ports, EL and PE are the smallest."
Jordaan also pointed to a proposed R11bn investment by Chinese automaker, Beijing Automotive International Corporation, which he said want to build a factory in the Coega IDZ to produce four model derivatives.
"We have a delegation from the Beijing Automotive International Corporation here. They want to invest R11bn here, they want to build four model derivatives of their passenger cars here. And, the central reason for that is the transhipment, export opportunities in these ports."
"Now, if they produce those four models as they want to turn the sod this and get production in 2018, are we aligned in terms of exports for that company by then. You have the keys in your hands. You are the catalyst for economic growth in this Metro.. I want to make it clear that this is a serious engagment that we want to have with you. You've invested R9bn in Saldanha, R1bn here (in the port of Ngqura). We were here long before Saldanha."
"We have to be a priority because we were denied the opportunity for 300 years and we struggle to get that opportunity. Please let us partners and deal with this problem. And, we ask this because this Metro has 36.6% unemployment, the people here are poor. We need you, we want to partner with you."
"So, I want to thank you for this investment. I want to recognise the centrality of Transnet in really being a catalyst for economic growth here because you are. That manganese and the waterfront in the port of Port Elizabeth. We've had many delegations. We've had people from the World Bank, the US, UK, France, wanting to invest in a waterfront development. We can't even give them a date. When are we seeing this thing happening. When can we say to investors to come (because) we are starting this waterfront. Economic growth is about certainty. Investment is about certainty and it certainly does not need the shifting of the goal posts. Then it is 2011, then it's 2016, then it's 2017, then it's 2021."
"You have tremendous power to unlock economic growth. And one of the things that we've recognised in this city is that in spite of the fact that we are going engage the Chinese to make the R11bn investment here and strengthen the automotive sector, we recognise that this question of unemployment cannot be addressed by the automotive sector alone."
"And, therefore we're looking at the Ocean Economy. And when we look at the ocean economy we look to Transnet. We are very happy that are two new tugs there (at Coega), we are very happy about this investment (in new infrastructure at the Port of Ngqura). We are very happy that you are creating the opportunities, we thank you, we praise you for that. But, so much more is required and we want to work together with you. You have the key to unlock hope and opportunity and jobs in this Metro."
"So, we do want to engage you on the waterfront because every single coastal city in the world are thriving cities. The contradiction is East London and Nelson Mandela Bay Metro. The question is why. The gateway to the ocean is locked, please unlock those gates. Make the question of the removal of the tank farm and manganese ore dump a national priority because it will unlock the development of the waterfront."
Jordaan said that the timeframes for the removal of the the tank farm and manganese ore dump are continually changing, with the latest being 2021.
"It cannot be, we want to tell you straight that we don't except 2021. We say no, we're going to engage you, we dont' accept that date, let me tell you straight. We want certainty. We know your problems and we'll do what we can to support you," Jordaan said.
Reacting to Jordaan's comments, Transnet Chief Executive, Richard Villihu, said they would be fast-tracking the removal of the iron ore dump and fuel tanks.
"There is clearly a legacy that we are leaving that we are moving fast on some things and other things we have to be considerate of what's going on. Now, I've taken up what the executive mayor, Dr Danny Jordaan, is saying that we need to work together, because it's complex. It's not just about us as the port moving forward there are all those different players and there's resistance as well," Villihu said.
However, when pressed by reporters to explain where the resistance was coming from, Villihu said it was coming from "many quarters" but declined to elaborate further.
Villihu said Transnet's strategy was to become "smart peoples' ports" where communities surrounding ports derive benefit from their operations. "For far too long we've alienated communities around the ports. Now, our whole idea is how do we make sure that communities around the ports benefit, not just the shipping lines and cargo owners. So, we are pushing that.," he said.
Meanwhile, Transnet announced the development of two new landmark developments in the Port of Nqgura being a state of the art administration building and an administration craft basin for pilot boats and tugboats. Also included in the R700m investment investment into the port is the vacuum based automated mooring technology which was pioneered at the Port of Ngqura.
"These three major operational projects form part of Transnet's market demand strategy which is now in it's fourth year of implementation and which aims to enable the effective, efficient and economic functioning of an integrated port system to promote economic growth," said Villihu.
