Port of East London
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The Port of East London is South Africa's only remaining river port and is situated at the mouth of the Buffalo River in the East Cape Province. The original name was Port Rex. The general cargo port has rail and road connections with the hinterland (Free State and Gauteng) and north and southwest to KZN and Port Elizabeth, respectively.[1]
Plans for a coal export terminal at East London, originally announced in 2011, were cancelled in 2014.
Location
The Port of East London is situated at the mouth of the Buffalo River in the East Cape Province.
Coal handling proposal
Export plans
In March 2011, London Commodity Brokers (LCB) announced it aimed to sell 2 million tonnes of South African thermal coal a year for Strategic Natural Resources (SNR), using the port of East London rather than the busier Richards Bay Coal Terminal (RBCT). The coal, produced by SNR's Elitheni mine in the Eastern Cape of South Africa, would be shipped out of East London Port. Once the mine "has reached full production," Port Elizabeth would be used as well. SNR, advised by LCB, was in discussions with potential customers for the coal.
Booming Asian demand for South African coal, led by India and China, prompted producers to look for new routes to take advantage of the high coal prices of around $120 a tonne, which give exporters a reported profit of over $60. LCB had sold 200 million tonnes of coal since its inception in 2005, including over 22 million tonnes of South African coal from RBCT in 2010.
2014 cancellation
As of early 2015, plans for a coal export terminal at the Port of East London have definitively been scuttled, due to the insolvency of terminal developer Elitheni Coal as well as pollution concerns raised by Mercedes Benz South Africa (MBSA), which operates a large manufacturing plant in East London. In February 2012, MBSA publicly expressed concerns that its automobile painting operations would be negatively impacted by pollutants associated with the loading and off-loading of coal.[2]
In November 2013, Elitheni Coal, developer of the East London coal export terminal, shut down its Elitheni Mine and experienced a hostile takeover after incurring unpaid debts of over 20 million rand. Elitheni Coal's new management subsequently announced their intent to develop a coal power station at the mine rather than exporting coal through East London.[3]
In June 2014, the Transnet Group, which oversees operations at all South African ports, confirmed that plans for the East London coal export terminal had been cancelled, despite Transnet's investment of over 80 million rand in mobile cranes and other infrastructure for the terminal. According to Transnet Port Terminals chief executive Brian Molefe, Transnet planned to move its cranes and other equipment from East London to a new multi-purpose terminal in Ngqura, the Port of Ngqura, which would begin handling exports of both manganese and coal by 2019.[4]
Transnet Port Terminals
According to Transnet Port Terminals's (TPT) website, the East London Terminal trades coal:
- "The East London Terminal (MPT) consists of a Ro-Ro terminal, the largest grain silo on the South African coastline, break-bulk and containerised cargo facilities. The NOSCAR rated Ro-Ro facility includes a sophisticated multi-level car terminal. Established in 1963, the terminal currently employs over 120 people. Recent investments in equipment varying from straddle carriers, reach stacker and forklifts – have seen a focused plan delivering an efficient service that has boosted terminal handling. The East London Terminal still has ample capacity and an ability to attract more volumes across varying cargo including heavy equipment. The terminal handles import and export cargo like motor vehicle components, textiles, sugar, rice, timber, scrap steel, automotive and chemicals."
However, it only lists a break bulk capacity of 0.21 million tons per annum (in addition to agricultural and automotive capacities) as of 2021.[5]
Project Details
- Operator: London Commodity Brokers
- Location: South Africa
- Proposed Capacity (Tonnes): 2 million
- Status: Cancelled
- Type: Exports
- Coal Source: Elitheni Mine
Articles and resources
References
- ↑ "East London" Ports and Ships, accessed March 2011.
- ↑ "Mercedes Benz against coal export terminal at East London" Moneyweb, February 13, 2012.
- ↑ "23 Nov: ANC boss, the Irish connection, and the hostile mine takeover" DispatchLive, November 25, 2013.
- ↑ "EL set to lose coal terminal to Ngqura" DispatchLive, July 1, 2014.
- ↑ "East London Terminal," Transnet Port Terminals, accessed October 2021
