11 June 2019

South Africa is moving ahead with plans to develop
a new ‘inland port’ in Gauteng after awarding the winning bidder that will
develop and operate the US $168m Tambo Springs Intermodal Terminal in Ekurhuleni.

Transnet awarded
the 20-year concession to Southern Palace joint venture consortium to design,
construct, finance, operate and maintain the terminal. The consortium is led by
Ferrovie dello Stato Italiane, which will serve as a technical partner, and
comprise Makoya, an empowerment logistics partner that would be supported by
Concor, Aecom and Italferr.

Through a public-private partnership the project
dubbed Tambo Springs Intermodal Terminal is expected to reach a financial close
by September with sod turning set for November.

The terminal will be built on a 607 ha property
near Vosloorus, in Ekurhuleni which has been earmarked for development of a
larger logistics hub being promoted by the Tambo Springs Development Company.

The hub and the terminal are part of the
government’s Strategic Infrastructure Project 2 which aims to develop
growth-supporting infrastructure along the Durban-Free State-Gauteng Corridor.
Additionally the intermodal terminal also forms part of Gauteng Integrated
Transport Master plan.

“Springs inland terminal has been on the
government’s plans for a number of years. Witnessing it coming to fruition is
indeed a historical moment for many South Africans. Once completed, the inland
terminal will completely change the face of Gauteng,” said Transnet’s chief
business development officer, Gert De Beer. 

If all goes into plan the 225,000 twenty-foot
equivalent unit (TEU) facility will begin operations during the third quarter
of 2022, but the concession agreement includes scope for an expansion to
560,000 TEUs a year. Moreover it also allows for the concession term to be

The new Springs terminal will boost efficiencies as a fully-fledged modern intermodal facility, directly connected to the Natal Corridor (Natcor) rail link between Durban and Johannesburg. The project will lead to the creation of 81 000 jobs during the contract phase and 110 000 permanent jobs in transport, manufacturing and logistics operations.

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