5. Introduction
5.1 Drivers of Expansion of Port of Durban
The 21st century and the forces of economic globalization are factors resulting in growth global trade, investments and movement mobility of all factors of production across local and international boundaries (Rondinelli, 2004). The demand globally for fast distribution of information, goods and services from one place to another requires companies all over to use an active business practice and integrated logistics systems that would allow information, goods and services to delivered fast and at a larger quantities. The forces that shape the economies of urban areas in this era have led to profound changes in the world economy, which consequently affect South African cities, as they have to compete in the global market. In order
74 | P a g e to compete with other countries, nations and cities, the city of Durban must have a port that is efficient, logistic infrastructure that is sufficient as well as well-developed and established inland transportation routines such as roads and railways. If these resources are not well established it is within the port authority in joint with city to expand the port in order to compete in a global economies (Rondinelli, 2004).
5.1.1 Current Logistic Trends and Constrains
The Port of Durban has two major roles, firstly its plays a key role in the regional economy of Durban and secondly as well as that of the South Africa by being the international gateway for Gauteng region, which is the main economic hub of South African economy through the diverse port facilities it offers (Mather and Reddy, 2008:2). The port of Durban mainly focuses on both general and bulk cargos. The port’s cargo consists mainly of container and unitised bulk (vehicles) which require large-scale manoeuvring and sophisticated cargo handling facilities and storage (Maharaj, 2013). Over 4500 commercial vessels call at the Durban port yearly, there has been a rapid growth trend in terms of containerisation, with little growth in other areas of cargo volume which results into problems of capacity (Maharaj, 2013:6).
A project managers working on the Back of Port project interviewed stated that currently there are 2.9 million containers in the Durban Container Terminal (DCT). These are going to increase by 700 thousand yearly, eventually by 2050 will be looking to 20.5 million containers coming in to the port that is why there is a need to expand the port (see figure 10). Containers are imported and emptied in Durban, then taken to an industrial areas in Pinetown, Hammersdale and Pietermaritzburg before they are distributed throughout the country to places such Johannesburg. Therefore there is a huge need for space for both full and empty containers.
Secondly, one needs to note that Durban Port imports raw materials such maize, wheat, fertilisers, grain, liquids, steel, timber, pipes, granite, fruits, these requires huge space for packaging and this is some of the reasons the port need to expand.
75 | P a g e Figure 10: Current Logistic Trends in Port of Durban
Source:Researcher (2014) based on Port of Durban Logistic Trends (Back of Port Template)
Above figure 10 is summary of the current logistic trends in the Port of Durban;
According to the Back of Port project managers approximately 75% of all containers shipped and landed at the Port of Durban do not leave eThekwini Municipality.
Approximately 80% of all cargos from these containers leaves eThekwini Municipality
There are 1320 logistics companies in eThekwini Municipality, 1021 are trucking related
More than 50% of trucking related logistics companies are situated within 15km of the DCT.
Three biggest warehouses (Riverhourse Valley, Westmead and Southgate) are located with 30km of the Durban Container Terminal.
0 100 200 300 400 500 600 700 800
Durban Container Terminal DCT…
Pier 1 Phase 1(2011) Pier 1 phase 2(2014) Maydon Wharf (2017) Reunion Dig Out (2019-2037) Bayhead Dig Out(2037-2050) Total
TEU - A measure for container quantity
Re-engineering/expansion phase
Durban Container
Terminal DCT (2011) Pier 1
Phase 1(2011) Pier 1
phase 2(2014) Maydon
Wharf (2017) Reunion
Dig Out (2019- 2037) Bayhead
Dig Out(2037-
2050) Total
TEU Capacity Millions 20,5 6 9,6 0,6 0,7 0,7 2,9
Full TEU Space Requirements 714 209 335 21 24 24 101
Empty TUE Space Requirements 164 41 89 4 5 5 20
Port of Durban Build-up of TEU Capacity
TEU Capacity Millions Full TEU Space Requirements Empty TUE Space Requirements
76 | P a g e Project Manager (1) interviewed reported that “In terms of tourism, everybody likes to go on the Queen Marry, everybody likes to cruise with the coolest cruise to these island. These ships are not South African ships, but are model ships; therefore there is a need to accommodate them. These new model ships are deeper, wider and bigger for example Panama. In addition if you want to be the key player in global market you have to change and spend money” Project Manager (1) interviewed stated. Interviews with the project managers highlighted the lack of space to accommodate increased demand, therefore the Port of Durban needs to be expanded in order to retain business and be globally competitive. This is in line with Rondinelli, (2004:5) and Wu’s (2011) arguments on external and internal drivers and factors (discussed in chapter two) that influence port development in the 21st century. The reasons for the expansion of the Durban port speak mostly to the factors of competition that requires one port to mainly gain more cargo than other ports provided that it has proper and adequate logistic infrastructures.