A proposal by the National Ports Authority for Transnet to okay a R900 million container terminal expansion plan could give the local port a 30-year lease on life in terms of global shipping.

NPA's Terry Taylor on Thursday said the proposed plan was aimed at developing a new container terminal - which is crucial for moving automotive components - on the Eastern sea side of the current breakwater.

Taylor said Transnet chief operational officer, Louis van Niekerk, had come here twice to discuss the port.

He was reacting to a warning by departing NPA manager Tamie Ntshingila. He said government at the highest level has been warned that, unless immediate, visible attention is paid to the port of East London as an automotive hub, it will lag behind.

A company such as DaimlerChrysler would find it difficult to remain in a viable position.

Sketching the immediate problems facing the port, Taylor said vessels currently carried more cargo. "This is as a result of a scarcity of vessels and 'the Chinese effect' - where the economic boom pushed charter rates up from $7,000 per day a few years back to $30,000 per day currently."

He said there is huge pressure on vessels to carry the maximum load, which in turn demanded a deeper draft (depth).

"We presently have a maximum draft of 10,5 metres at the container terminal. We're going to urgently need to deepen the draft. Shipping lines need at least 12m, which means we have to dredge it by 1,5m."

However, Taylor said the present container terminal can only be dredged down to 11,5m. "Thereafter it would be unsafe."

He said port captain Sibongile Booi, also acting as port manager as from this month, indicated that dredging in excess of 11,5m would probably place extra pressure on the key walls.

"At the same time we would also have to dredge the turning basin and entrance channel to the channel."

Taylor said deepening the present port to accommodate an enlarged container terminal would cost anything between R300m and R500m.

"However, if we develop a new terminal we will increase the container capacity by more than three times."

Current container capacity allows for 100,000 times 20ft (100,000 teu's) containers to be stacked up.

Taylor said another problem was that East London does not have any container cranes.

"Today the majority of container ships are gearless vessels, which rely on port cranes to offload containers. The new terminal would be equipped with state-of-the-art cranes."

If the new development is approved by Transnet, it will take three years to construct. The design has also taken adverse weather conditions into account, according to Taylor.

He said the development would enable the facility to service importers and exporters from the Gauteng area.

"The East London/Gauteng rail line has huge capacity and could run up to 14 trains per day. This facility would not only service the local area but also assist in Bhisho's Provincial Growth and Development Plan."

In response, DCSA's Annelise van der Laan said the group had a good working relationship with the port.

"We will pursue the best workable solution while the port has to face competitive challenges in order to deliver cost efficiency supply chain logistics."

DCSA and other original equipment manufacturers, through the National Association of Automobile Manufacturers, were in discussions with Transnet to find economies of scale and efficiencies for the auto industry in respect of ports and railways.