The deep-water harbour at Coega took a step closer to completion on Tuesday when Transnet announced a R2,5-billion injection for infrastructure development.

The money, which will be used for container terminal equipment, cranes and straddle carriers, will see the Port of Ngqura begin operating by 2008.

The money will be made available to the port via the National Ports Authority, a subsidiary of Transnet.

There is exploratory work going on now. Contracts will go on tender and will be awarded by September, said National Ports Authority resident engineer Chris Matchett.

The container quay, which currently makes provision for two ships, will also be extended to accommodate four ships.

Three berths will also be built at a separate quay to accommodate two dry bulk ships and one tanker.

"Ideally we would like to have two container berths completed by December, 2008. That's when the first ship is expected to dock at the port," he said.

"The current container quay is just over 700 metres. When completed, it will be about 1 400 metres. Part of the money may also be used for a railway line to connect the Coega station to the main railway line from Port Elizabeth to Johannesburg," he said.

Delivery of cranes, straddles and other port equipment would take between 18 and 24 months, depending on the manufacturer, Matchett said. The cranes and container terminal would offer state-of-the art technology able to handle the large volumes of traffic expected at the port. "The new harbour will be able to accommodate vessels carrying 6 500 containers. The Port Elizabeth harbour can't carry more than 2 400 containers."

Matchett said there was still much work to be done at the harbour, including the completion of phase one of the development.

Outstanding projects included the construction of a port control building, a vessel tracking system, fencing and security.

"There is much to be done. You can't spend that money overnight. We could have started (Phase 2) a little sooner, but we had to have finances sorted out."

Port Elizabeth Regional Chamber of Commerce president Dave Coffey said Tuesday's announcement was great news. "It is vital that the port becomes operational so that it attracts investors into the region. It will have a huge economic impact and create jobs."

He said it showed that the government was serious about the success of the Coega industrial development zone.

National African Federated Chamber of Commerce regional chief executive Xolani Tengo said he welcomed the investment. "We hope that small and medium enterprises in Nelson Mandela Bay will benefit from procurement," he said.