Project information

  • Project:
    Boegoebaai Port and Rail Project
  • Owner:
    Northern Cape Department of Transport, Safety and Liaison (NCDTSL)
  • Key Stakeholders:
    Transnet, National Department of Transport, Department of Public Enterprises, Treasury
  • Transaction Advisor:
    TM and Nelutha Consulting JV (TM)
  • Technical Consultants:
    PRDW, PSP Logistics, NAKO ILISO
  • Project Status:
    The project is in FEL 2 phase. Finalisation of FEL 2 is planned for December 2018.
  • CAPEX:
    Port = ~R6-billion +/-40% accuracy. Rail = ~R9-billion +/-50%
  • Estimated jobs to be created:
    3,000 permanent and 18,000 indirect jobs
  • Project status:
    PPP Feasibility study at FEL 2 level to be completed end of April 2019

Project description

A greenfield, deep-water port development comprising two berths; one dry bulk export berth and one break bulk berth, supported by a 550 km railway line. The port has the potential to accommodate Capesize vessels.

Primary drivers for the development include:
  1. Capitalizes on new economy, including:
    • Iron ore from junior miners, creates a catalyst for junior / development miners currently constrained by high transportation costs and exclusion from larger logistic solutions i.e. Sishen-Saldanha line
    • Provides a more efficient logistic manganese route
    • Strategically positioned to capitalize on gas fields
    • Services base for oil, gas and offshore mining industry
    • Potential of an Oil Refinery to be constructed close to the port
  2. Economic catalyst for the Northern Cape Province and specifically the Richtersveld Community
  3. Reducing the cost of moving cargo
  4. Optimizing the cargo distribution within the SA port system
  5. Stimulating regional socio-economic development
  6. Securing a competitive advantage regionally for SA ports

Project Commodity Mix

Commodity Volume (mtpa) Comment
Dry bulk – Iron ore 5-10 New volume from junior miners
Dry bulk – Manganese 2-5 Lower cost logistic solution
Dry bulk – Lead & Zinc 1-2 Closest port to mines
Break bulk 0.5 Multi-purpose commodities, agricultural, mining and low container volumes

Funding Model

  • Public-Private Partnership to be adopted
  • Multi-tiered sub-concessions

Contact

Potential private sector investment partners interested in this project are invited to contact the Department of Economic Development & Tourism.