The port is getting a massive overhaul, with a budget of R160 million to spend over the next four years.

Improvements will include the expansion of the car terminal and an upgrade for the container area.

In an interview due to appear in a South African Port Operations (Sapo) supplement next week, Sapo business unit executive Piet Klinkradt said Sapo was determined to maintain the harbour's reputation of being one of the most efficient in Africa.

"Berthing delays for vessels are almost unheard of for the port of East London. The harbour has a good track record of being able to berth ships on arrival.

"The moderate weather conditions and spare capacity mean that vessel delays are minimal."

Capital investment was largely driven by customer needs.

"To ensure that the East London terminal is not only able to continue providing the levels of service for which it has become known, but also to support and contribute meaningfully towards the growth of our clients' business, the terminal has plans in place amounting to R160m over the next four to five years... Longer-term plans may see this amount increasing."

Klinkradt said the most significant plans centred on growth in the automotive sector.

"There is, nevertheless, also a drive to attract bulk grain cargoes back to the grain elevator."

The plans provide for an additional four floors for the car terminal, with a further 1896 parking bays at a cost of more than R87m to meet DaimlerChrysler's projected export demands.

There are plans for a R20m upgrade of the container stacking area and to replace the ageing straddle carrier fleet. "The value of replacement equipment will exceed R35m. Another R16m is also available for smaller projects," said Klinkradt.

He stressed the need for public-private partnerships to help deliver the goods.

"An agreement entered into between Sapo and a third party service provider which provided a series of mobile conveyor belts to link vessels offloading bulk grain products with the landside bulk storage silos is realising positive results."

Klinkradt said Sapo would be a vital link in the integration of all Transnet's logistics services.

"The strategy to enhance the levels of integration between the different Transnet divisions can only benefit customers moving forward," he said.

Border-Kei Chamber of Business director Les Holbrook welcomed the news and said it was part of a long-term plan for the city, with particular emphasis on DaimlerChrysler's contract to manufacture the new C-class Mercedes-Benz.

"This is really a visioning exercise by Sapo and the expected growth of the port is in line with the growth of the motoring sector."

Holbrook welcomed the container expansion. "This section is currently not as big as a port like East London should have."

He said the budgeted expenditure was good for business and evidence of Sapo's confidence in the city.

"Sapo has a strong black empowerment segment and this decision will certainly benefit business, especially small and medium enterprises."

While the investment is a boost for East London's port, it pales when compared to other port development in South Africa.

Finance Minister Trevor Manuel touched on the upgrading of Richards Bay, Durban and Saldanha in his budget speech this year.

Manuel reported in his Budget Review that the NPA would spend:
• R689m on Durban's Pier 1 container terminal;
• R1,5 billion widening the Durban harbour entrance; and
• R1,4bn on the Cape Town container terminal and berth expansion.

A R650m upgrade to the iron ore export plant is currently in full swing at Saldanha and will be implemented over the next three to four years.