The study highlighted the fact that the capacities of the three existing container terminals in South African ports are inadequate to meet the demand for container handling until 2019/20 and that physical and environmental limitations on their expansion necessitate the development of a new terminal.

The study also identified the fact that the only suitable locations for a new terminal which can be developed to the capacity required were either the Port of Richard's Bay or the proposed Port of Ngqura at Coega.

The study said that construction of the Port of Ngqura and the development of the container terminal there could be economically justified provided the port infrastructure is limited to the basic requirements needed to serve the terminal. The study also determined that the new facility would be feasible if the investment in it and the subsequent development and expansion of the terminal enable the cost of constructing a similar terminal at Richard's Bay to be avoided.

Because of the current expenditure of R1343 million on the expansion of the capacity of the container terminal at Durban, the terminal at Coega will be required only in 2007/08.

Construction therefore needs to start in 2004/05 if three years are required to complete the facility, although starting in 2003/04 is said to be 'advisable' in view of the extensive marine work to be undertaken.

The main contract comprises the construction of breakwaters, quay walls for the five berths and earthworks. The second contract involves dredging of the approach to the Ngqura river and entrance channels. The third contract is the sand bypass contract.

According to information released by the South African authorities, the initial work to be completed includes rock blasting, earthworks, environmental landscaping and rehabilitation, structural concrete, reinforcing steel and framework, the supply of reservoir level control equipment, SCADA radio telemetry equipment and an in-line, hydraulic Pelton wheel power generator. Transportation links, including road and rail networks and logistics infrastructure will be developed later.

The centrepiece of the new port will be a container terminal and trans-shipment hub. The closing date for expressions of interest in the project is 30 December 2002.

On 28 May, the Coega Development Corporation invited tenders for the construction of accommodation for the construction workers on the development of the project.

Preliminary construction at the Coega Industrial Development Zone is to begin at the end of July. Construction on the project, which has been criticised for being environmentally unfriendly and not economically viable, will start with the upgrading of the N2 highway, which runs through the zone, and the local electricity network. Once construction begins at the zone, between 4,000 and 5,000 jobs will be created. Up to 50,000 jobs are expected to be created either directly and indirectly through the project.