South Africa’s Richards Bay Port set for major expansion with over US$15M investment

The container terminal will serve as a critical logistics node due to its strategic proximity to the hinterland market

SOUTH AFRICA – South Africa’s Transnet National Ports Authority (TNPA) has formalized a partnership with Grindrod Eyamakhosi Joint Venture to develop and operate a new container handling facility at the Port of Richards Bay’s Bayvue precinct.

This strategic investment, valued at approximately US$15.8 million (R285 million), aims to quadruple the port’s container handling capacity from 50,000 to 200,000 twenty-foot equivalent units (TEUs) annually.

Positioned to unlock economic growth in the northern KwaZulu-Natal region, the project underscores TNPA’s broader strategy to diversify the port’s cargo profile beyond bulk commodities, including coal and liquid bulk, to handle increased container volumes.

The container terminal will serve as a critical logistics node due to its strategic proximity to the hinterland market, facilitating faster and more cost-effective transportation for domestic and regional trade.

During the signing ceremony in Richards Bay, Andile Sangqu, Transnet Board Chairperson emphasized the importance of the project within the framework of Transnet’s “Reinvent for Growth” strategy.

He highlighted that the initiative is critical for restoring operational excellence, enhancing the competitiveness of the national freight logistics network, and unlocking long-term value for industry stakeholders.

The establishment of this facility is now critical as Transnet implements its strategic framework ‘Reinvent for Growth’ to restore operational excellence, enhance the competitiveness of the national freights logistics network and unlock long-term value for industry stakeholders.”

Sangqu described the project as a blueprint where commercial growth, community benefits, and inclusive development coexist, underscoring the value of well-regulated private sector partnerships in unlocking capacity.

The signed agreement follows the successful completion of Section 56 of the National Ports Act No. 12 of 2005 process, through which TNPA awarded Grindrod Eyamakhosi a preferred bidder status in June 2024 for a 25-year concession period.

Once operational, the facility will incorporate the latest technology and feature specialised infrastructure equipment designed for efficient cargo handling to ensure quick turnaround of vessels.

Following the commercial operationalization of the container facility in 2028, the project is expected to create approximately 122 permanent jobs for the benefit of the Richards Bay local community.

Xolani Mbambo, CEO of Grindrod, highlighted the development as a critical component in building a smarter, more efficient trade ecosystem.

Our investment supports Grindrod’s mission of enhancing Africa’s trade and driving community impact,” he said.

He added that the partnership with Eyamakhosi adds local depth and credibility to Grindrod’s empowerment drive.

Our vision is to create a seamless logistics hub integrating rail, road, and sea for regional economic integration and reduced logistics costs.”

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