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News Article - Automotive
NPA signs agreement with Pechiney
Posted on: Friday, 18 April 2003. Article source: Eastern Cape Business News
THE NATIONAL PORTS AUTHORITY (NPA) has signed up its first customer for the port of Ngqura near Port Elizabeth. An agreement covering the provision of services in the port has been signed between the NPA and French Aluminium giant Pechiney. The company has identified the Coega Industrial Development Zone (IDZ) as the preferred site for a planned R20-billion smelter. The Coega IDZ incorporates the port of Ngqura. Speaking at the signing, public enterprises minister Jeff Radebe said the agreement included the provision of separate import and export berths in the harbour. “The Port of Ngqura is a welcome addition to South Africa’s port infrastructure. We are confident that it is a timely addition to Africa’s family of ports, particularly at a time when traffic through Africa’s ports is increasing faster than global averages, and where ports must play an increasingly strategic role in the implementation of Nepad,” he said. The Pechiney agreement is designed to ensure that the Port of Ngqura creates the necessary infrastructure to ensure the port functions at maximum advantage he says. Land infrastructure covered in the agreement includes access roads and a portion of a conveyor corridor from the port to the IDZ. A lay-down area to provide storage for liquid pitch tanks, raw materials and finished products will also be built. “The NPA will also provide marine services, such as pilotage, berthing and tug services. Over and above these services Pechiney will be afforded preferential berthing which is demanded by the high volumes of products to be exported over the berth,” says Radebe. The agreement also outlines the utilisation of the port and lays down conditions for the use of port facilities, including the use of the land. Rates cargo and port dues, rental and marine services are included in the agreement. Radebe said the contract would be for an initial period of 25 years, with an option to renegotiate a further contract period. The parties are committed to meeting the deadlines with respect to the construction timetable and the provision of the necessary infrastructure. Work started on the Nqura port in November 2002, with the shoreline being broken earlier this year. The two breakwaters that will protect the harbour stretch about a 100 metres into Algoa Bay. Total infrastructural investment committed to Coega is over R5,5-billion to date, according to Coega executive manager communications Raymond Hartle. This includes an investment of approximately R2,3 billion by Eskom in electrical infrastructure to serve the smelter.
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