Port Elizabeth Waterfront Development Project

In his State of the Province address in February 2020, the Premier of the Eastern Cape, Oscar Mabuyane, spoke of some big projects in the pipeline to boost the economy in Nelson Mandela Bay. One project is the much anticipated Port Elizabeth Waterfront Development project. 

Mabuyane spoke of the many possibilities that a waterfront development could do for the economy based upon the favourable results that the Victoria and Alfred Waterfront development delivered for Cape Town.

 “Cape Town became a better city whereby the gravity of the City Central Business District (CBD) Development shifted towards the V&A.”  

This also opened doors to the establishment of the Cape Town International Convention Centre, developed at the entrance to the V&A, as well as major hotel developments around the perimeter of the V&A. The V&A Waterfront area became a ‘financial district’ which revived the CBD and connected with the V&A. The development of upper-end residential developments followed around the V&A which created a major increase in the rates bill of the city because of the high value of the development.

Talking on the possibilities of waterfront development for the port of Port Elizabeth, Derick van der Merwe, former CEO of the V&A Waterfront, highlighted the many challenges the Cape Town Harbour was faced with before the development of the V&A Waterfront could commence. He offered several approaches Port Elizabeth could take into consideration to follow the same route of a possible waterfront development that would benefit the people of Port Elizabeth.

Van der Merwe said the construction of the waterfront together with the possibilities of shops, restaurants, and residential premises could lead to more jobs being created. This will have a ripple effect on the economy, creating sustainability as this will lead to an upward spiral with more people having money to spend.

Residents in Nelson Mandela Bay have been demanding that the Transnet National Ports Authority (TNPA) remove the manganese ore dump and fuel tank farm to make way for this waterfront development. 

In his address, Mabuyane said they had concluded a significant land deal with Transnet for the Ngqura Manganese Export Terminal, which will pave the way for this development.  According to him, they are moving ahead with speed now.  How much the COVID-19 pandemic will put the brakes on this speed remains to be seen. 

The removal of the tank farm was non-negotiable, as it posed a major obstacle through the production of high levels of methane gas.

In response Transnet port manager, Rajesh Dana, offered that the ambitious waterfront development in Port Elizabeth will be a long-term development, taking at least 28 years to be fully operational.  “Transnet has committed to co-operate with the public and private sectors on this LNG gas project.”

The relocation of the two mentioned Transnet operations to the Port of Ngqura is key to the establishment of Port-Elizabeth waterfront development in the harbour, and is viewed as critical to the growth of the Port-Elizabeth economy and tourism.

The focus of the Port-Elizabeth Waterfront Development marina project, which would be developed and owned by the port authority, would be on making it a people’s port with massive potential for commercial development.

Dana said it was envisaged that the Port-Elizabeth Waterfront Development would include a maritime museum, retail stores, restaurants, offices, a statue or feature honouring former president Nelson Mandela, a passenger terminal, canal waterway, bunkering for small vessels, maritime education and training, as well as an international convention centre.  It was also hoped to have public art displays and other events, starting with the revival of the ports festival in February.

The transformation will include the expansion of the cargo handling services and capitalising on the growth in the ship repair industry.

Tapping into the ship repair industry could also see the city become a catalyst for the establishment of a marine engineering hub in Nelson Mandela Bay.  “That would introduce a host of new capabilities to this region and a much-needed economic revival of that sector in the Port-Elizabeth Waterfront Development,” Dana said.

Transnet also wanted to make better use of its existing infrastructure, particularly the rail linkages to Gauteng.  “Volkswagen and GMSA rail cargo up to Gauteng, but coming back the train returns empty,” he said.  “We’re in engagements with Gauteng-based companies to utilise the return leg to export their cargo through the Port-Elizabeth Waterfront Development.  “With more ships choosing to use the Port-Elizabeth Waterfront Development for international crew changes, there is huge potential to position the city as a service port.

“Exciting to us is the establishment of a ship repair precinct within the Port of PE – and that is spearheaded by the fact that we will soon be constructing a yacht-building factory.”

Throughout the project, Transnet will seek to complete the integration and linkage with the city’s plans for the CBD rejuvenation.

“We will also link with the Baakens River, King’s Beach and Bayworld developments, the exciting developments for Happy Valley and those of Telkom Park. We would like to fully integrate with Route 67 as well,” Dana said.

The parastatal’s vision for the Port Elizabeth Waterfront Development marina is for a vibrant busy port that attracts domestic and international tourists.  The Port Elizabeth Waterfront Development will still operate as a service-driven harbour but with added arts and recreational landmarks and attractions.

Bay economic development, tourism and agriculture committee chairman Andrew Whitfield said the city’s new coalition government had held a meeting with Transnet officials to discuss its vision for the metro.  He said the Port Elizabeth waterfront development would position the Bay as a globally competitive city.

“We know that the dates have been moved in the past.  We hope that, as Transnet, you will meet your dates and commitments,” Whitfield told Dana.

Although a residential development was envisaged, it was still not certain what form this would take.

Dana urged the municipality to expedite any municipal approvals that would be required.

Requests for proposals will be put out in December 2020.

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