South Africa regional review August 2011
 
OVERVIEW
Since posting strong growth in bulk exports during 2009 and 2010 South African volumes look set to show only moderate growth in 2011 with 3.8%, however this is more or less in line with global growth in dry bulk exports for 2011 estimated to be around 4%. The potential for South Africa to exceed current volume is there and to some extent is hampered by infrastructure challenges. The substantial volume of exports from South Africa is driven by its strong presence in supply of both key commodities of iron ore and steam coal as well manganese ore.
South Africa’s key bulk ports remain Richards Bay with coal being the primary export and Saldanha with the main export being iron ore, however Durban continues reasonable growth whilst the Eastern Cape channel of Port Elizabeth bulk terminal remains critical for the export of manganese ore.
A significant swing to Pacific Basin trading for RSA major bulks has occurred over the period 2006–2010 from a low of 21% in 2006 to just over 70% in 2010 and whilst this might be a similar pattern for other trading nations it is probably a lot more dramatic for South Africa which has traditionally been an Atlantic basin trading nation. This will have also seen a dramatic change in the demand for bulk capacity, including a tonne mile switch, but also greater use of Panamax/Supramax tonnage at the expense of Capesize, notably with coal trading to India against largely Capesize vessels to Europe, but Capesize use would also have increased due to the dramatic growth of iron ore exports.
These two significant factors of a massive swing towards India and now China for steam coal exports at the expense of traditional Europe supply, the doubling of iron ore exports in the last five years, with all of this growth moving to China, is detailed in the graph.
What is interesting about the graph is that it shows only moderate growth in major bulk export until 2010 and this should be viewed in the context of the exports of steam coal and iron ore over this period. Steam coal exports have been flat during the last 4–5 years in spite of terminal capacity growth and the result of rail shortfall so coal simply witnessed a mix change from Atlantic trading to Pacific over this period. In contrast iron ore doubled exports over the same period.
This therefore results in coal being much smaller as a percentage of South Africa’s total bulk exports, whilst iron has grown in significance. The two commodities are much closer in respect of their relative shares of bulk export from South Africa.
On the political front there are two areas of concern to the ongoing health of the export bulk industry. Disturbingly the youth wing of the ANC led government, the ANC Youth League (ANCYL), is repeatedly pressing for nationalization of the countries mines to become government legislation. The Government policy remains firmly in favour of the current structure but the debate is significant enough to cause some consternation in the South African Chamber of Mines notably as the ANCYL position is hampering potential future investment while this is a debate item. At this stage it is only at investigation level looking at other countries and may in time disappear from the agenda but the debate can be considered unhealthy given that it’s being driven by a radical element of the ruling party.
De Beers Consolidated Mines director Sakhile Ngcobo recently said South Africa should stop talking about nationalization and start focusing on foreign direct investment to keep its position as a top mining investment destination.
“We need long-term clarity on legislation in this country, because mining is a long-term investment. Companies will not invest in South Africa if they are worried that their investment will be nationalized,” he added. South Africa’s global mining ranking has already dropped in recent years, mainly as a result of policy and other uncertainties, panellists said at the Terrapin Africa Mining 2011 conference in Johannesburg.
Other concerns included labour issues, security of tender and a drawn-out regulatory environment. South Africa also failed to attract more exploration capital in recent years.
On a more positive note the government’s ‘New Growth Path’ policy which reaches a wide number of areas does concentrate on driving increased beneficiation of SA base bulk exports. Whilst this is a credible policy to follow, basic economics tend to rule how markets and cargo moves. An example of flawed policy in this area is related to the Ferrochrome industry which demands huge power to turn chrome ore to charge chrome (the latter being a considerably higher value product). South Africa has significant reserves of chrome ore but is short of power and so much so that some of the larger Ferrochrome producers have shut down smelters
during quarter 3/2011. Whilst this is being presented as planned maintenance shut downs in a traditionally quieter market the reality is that this being the winter period in South Africa the demands for power vs. the short term inability of Eskom to meet full demand means that Ferrochrome Smelter shutdown does save significant power in the peak period.
There is also further debate in this area in respect of iron ore production vs. local steel production and the merits of beneficiation to increased steel production which does appear flawed when viewing models like Australia’s iron ore industry and their growth path. The debate on beneficiation is nevertheless a healthy one which merits investigation in all areas in a country which is blessed with large resources of all key bulk commodities.
 
REVIEW OF THE MAJOR SA BULKS
Coal trade
The trade from South Africa in steam coal is large and the Richards Bay Coal Terminal (RBCT) is one of the largest coal terminals in the world with 91mtpa capacity since its phase V expansion in 2010 coupled with fast working rates. The terminal handles both Capesize and Panamax vessels with Capesize reaching maximum 190,000 tonnes with 17.7 meter draught. Typical load rates are 50,000 tonnes per day. The performance of tonnage through the terminal has however been lacklustre at best due to rail shortcomings and trading volume of between 63–64mtpa (million tonnes per annum) has been the norm over recent years. The switch from primary Atlantic trading to Pacific continues from this trend appearing in 2009 and is shown in the graph below.
The switch in coal mix is two fold.
Europe has started to reduce coal purchasing as the drive towards carbon reduction continues and notably the UK, a previous large purchaser of South African steam coal, has declined dramatically. Some of the reduction however can also be based on a change in sourcing in Europe which has turned increasingly to Russia and Colombia supply. Ironically Germany has recently increased purchasing of SA coal and may have something to do with recent shutdown of nuclear plants and increase in fossil fuel imports to compensate. The general trend however is for Europe to decrease coal consumption and therefore imports.
India have really led the increased purchase of SA coal and at approximately 20mtpa now represent 33% of total exports by destination and demand is therefore more. Whilst India also imports from Indonesia and Australia the high calorific value and quality of SA coal vs. local supply and imports is feeding demand. India will continue to see increase in steam coal imports as it drives towards more and more power generation using this resource, the latest estimates from recent coal conferences suggesting 110mt (million tonnes) are required in 2011 against last year’s figures of 90mt.
Whilst a number of other Asian markets feed this swing to Pacific, notably China, imports started to increase during 2010 with demand levels of 7mpta, however volumes eased in the early part of this year due to price arbitrage, but appear to be returning in the last few months as SA coal again comes in under local China domestic prices.
The key, as has been the case for a number of years, is getting more product through the pipeline to a port which can handle a lot more tonnage and Transnet’s investment plan to improve volumes to 81mtpa by 2014 is welcome news, but sadly over the period of high demand since 2008 the opportunity in lost export volume to the country is large and that is a tragedy.
 
Iron ore trade
The success story in South African bulk exports over recent years has been the exceptional growth of iron ore exports through the port of Saldanha from exports of around 25mtpa in 2005 to over 46mpta in 2010. Even in 2009, when global steel production collapsed, iron ore exports from South Africa grew by 36% from 32.8 to 44.6mt.
The obvious upswing in demand came from increased China exports as shown in the graph however what is interesting is that whilst Japan and Europe saw large declines in 2009 in line with their reduced steel production this recovered well in 2010 and looks set to improve further in 2011 so with China exports elatively flat over 2010–2011 it is due to recovery in OECD that has seen a return to greater volume returning to previously traditional markets.
The challenge facing the iron ore industry is the next level of development in a high demand market. Currently the Sishen-Saldanha line is efficiently delivering 48–50mtpa of iron ore through Saldanha and has the ability to rise to 60mtpa without too much difficulty. The next stage of development requires increased trains on the line and this would entail an additional 9–10 passing places on the 800km track to facilitate the higher velocity of throughput. Elsewhere in this regional review it is reported that new locomotives being purchased by Transnet will add more capacity to the line and a real possibility of 93mtpa capacity can be realized over the next few years.
From a production perspective in the Northern Cape, Kumba and Assmang have plans to add 39mtpa of production and largely via beneficiation technology to convert ore types into valuable saleable product. Therefore the upgrade of the Sishen rail line is essential as is upgrades to Saldanha port to cater for this. The existing rail tariffs of between US$11–13 per tonne need to remain close to these levels in order for upscale projects remain viable.
A separate development could also take place in the North Eastern province of Limpopo via the Phoenix project (3.4mtpa) and Zandriveirspoort (5–8mpta) adding 8–11mtpa of production. Without dedicated rail capacity through to RCBT/Durban this would need to feed in to the existing steel industry, which might be questionable given low domestic consumption, but an alternative could be to use Maputo port as a gateway which could use Panamax vessels to handle this output.
 
Manganese ore trade
In many respects the demand and swing to Pacific trading follows a very similar path to iron ore in the manganese ore trade with reductions in 2009 to OECD destinations and growth of China volume whilst OECD from 2010 (also aligned to steel markets) started to show good recovery. The split of SA exports to key markets is detailed in the graph to the right.
Whilst some manganese ore transits through Durban and a small amount through Richard’s Bay the cost of this channel is high and the key export gateway remains Port Elizabeth bulk
Manganese Terminal Port Elizabeth
terminal which is handling between 4.1–4.2ptpa of product. This level is close to the capacity of rail line and to an extent port, the latter which generally handles 12–13 Handysize vessels per month on a 48–60-hour turn round.
Both production and export would appear to be at a cross roads as both are now at their limit in terms of port and rail capacity. The manganese industry is also quick to point out, even with the existing system, cost of moving product to port is killing competitiveness. A BHP Billiton/Econometrix presentation recently highlighted current rail costs of US$48 per tonne was way above that being paid by iron ore exporters (US$13 per tonne) from the same resource area but on two different links. The economies of scale are also different but the gap does appear excessive and given similar mining costs and relatively similar freight costs would appear to disadvantage South African exports vs. overseas competitors.
There is a proposal to route increased production via an upgraded Saldanha line to gain cost benefits (which Transnet argues is sub economic with existing iron ore rates) and the alternate proposal is to gain efficiencies by moving manganese exports through the deep water port of Nqgura (which would allow use of Panamax vessels) and appears to be max size required given the global market size of manganese ore (a minor bulk) would not lend itself to Capesize. Panamax would give a better economy of scale at the right vessel size, whilst an upgraded line through to Nqgura with larger trains could also get the current excessively high rates per tonne down. The move from Port Elizabeth to Nqgura should also allow export volume closer to 12mtpa and therefore freeing up maximum capacity for iron ore through the Saldanha channel. There is further logic to the Coega IDZ/Nqgura gateway given that a manganese alloy plant is opening in late 2011 and also steel manufacturing both of which need ore as an input.
The debate is likely to continue for some time but it is clear that solutions need to be found quickly to increase export capability, but also at the right transport cost to allow production to increase.
As can be seen, the health of the major bulk structure in South Africa is good. It has some challenges but with the right focus and development it has the ability to move considerably larger volume over the coming years and more so given the growing Pacific basin demand for these products.


 RSA transport challenges 2011
South Africa’s major bulks compete well in overseas markets and yet face landside challenges which are perhaps less of an issue in other markets and this has much to do with the location of the major export resource locations.
Iron ore is mined some 850 kilometres from the port of Saldanha whilst manganese ore has an even longer journey in excess of 1,000 kilometres to get product to Port Elizabeth with both resource based in the Northern Cape. Whilst coal has a slightly shorter journey of around 600 kilometres from Witbank to Richards Bay it has further challenges in consolidation of coal trains from the numerous mines operating in this region.
The well documented shortcomings of Richards Bay coal exports have been covered before and this continues in 2011 with export volume running more or less at similar levels over the last 3–4 years at 60–63mtpa (million tonnes per annum). This compares against Richards Bay Coal Terminal (RBCT)’s capacity of 91mtpa. Conversely iron ore exports have grown well in recent years and seen excellent support via the corridor to Saldanha (known also as the Sishen-Saldanha line) but are getting close to maximum in terms of rail capacity. A further challenge comes with manganese exports which are also close to capacity through Port Elizabeth and there is a challenge in terms of the future on whether to run ore via Saldanha or Port Elizabeth with the key being rail price per tonne for iron ore being much cheaper than the rail price for manganese ore to Port Elizabeth.
As far as port capacity is concerned, as mentioned with RBCT able to handle 91mtpa already, whilst Saldanha port with minimal investment could handle also between 85–90mpta to allow further growth of iron ore exports. The Port Elizabeth bulk terminal is close to capacity at 5mtpa and here an opportunity exists to grow capacity by moving to the newly built port of Nqgura, which is 25km away. With deeper draught allowing expansion from Supramax to Panamax vessel tonnage a new facility in Nqgura could allow 12–14mpta of exports of manganese ore. Therefore whilst South Africa’s major bulks currently total 112mtpa there is approximately 190mpta of port capacity available with some strategic investment over 70% growth in existing exports.
Beyond South African ports it should be mentioned that ongoing investment in notably Maputo port does present good opportunities for further port export volumes of South African exports. Notably coal, but also iron ore if the Limpopo ore fields are developed and here a further 20mtpa of growth would be possible with the right focus.
The good news is that the shortcomings of current rail capacity are being addressed via the government parastatal Transnet’s five year Capital Expenditure program worth ZAR110 billion (US$ 16.2 billion) and with some of these programs being looked at with private sector partnership given the scale of some of these projects.
For the all important coal line Transnet is financing a ZAR37 billion to upgrade the expansion from current 63mtpa to 81mtpa by 2014, but would seek involvement from some coal mining clients to take this beyond that level.
Similarly expansion of the Sishen-Saldanha rail line was at pre- feasibility stage to take capacity from 60mpta to 93mtpa and this study would be complete by the end of 2011. This project is estimated to cost between ZAR17–25 billion. Part of the study is also looking at manganese export expansion (to 12mtpa) and whether this could be run on the iron ore line to Saldanha as well. Miners favour the Saldanha option whilst Transnet seem to favour opening up Nqgura deep water port for this expansion which seems logical in terms of port facility and dedicating three separate ports for each major bulk. Transnet has committed to vacating Port Elizabeth bulk terminal by 2017 so the project to run manganese through Nqgura would need to take place between 2012-2017 and has a price tag of ZAR10–20 billion with private sector partnership also being a feature.
Further investment by way of rolling stock is under way through a ZAR23 billion investment (which also includes passenger rail). In addition a large upgrade of locomotive power is underway with General Electric supplying 100 x GE class 43 locos over the next two years. These units have 33% more hauling power of existing older locomotives and also save fuel. They are also the first units in Africa to use AC electric power and delivery of the first two units took place in early February. 90 of the units will be built at Koedoespoort in South Africa
In addition to this upgrade a further 32 units supplied by Venus Railway Solutions a subsidiary of Japan’s Mitsui & Co Limited and will also be assembled at Union Carriage and Wagon (UWC) with some local sourcing of components.These units will commence production in December 2011 with the full order complete by August 2013.
As can be seen such projects take time to implement but it is encouraging that the areas which need attention are now receiving the necessary action to take South Africa’s bulk exports well beyond their current bottlenecks. Failure to address these areas quickly will place South African mining exports at a lower global level than we’ve see today so they are essential for the health of the country as well as importance to the growing bulk market and tonnage employment.
 
Bulk Connections embarks on major modernization
Bulk Connections is undergoing a major environmental and efficiency upgrade. The conveyor system has recently been upgraded to run at 2,500tph (tonnes per hour) and is being modified to handle the fine and coarse manganese ore. Berth occupancy on the two main berths below will be below 45% based on 3mt (million tonnes) per year and there is still a further berth should either of the primary berths be occupied.
The container loading system is constantly being improved and efficiencies are showing results as more concrete roads are completed. Currently vessels using this system get load rates of 20,000 tonnes per day and this is hoped to increase still further.
The storage areas are all concrete and are fully committed however occasionally spot shipments still occur as ad hoc
space becomes available. This cargo tends to be moved off the storage areas quickly and is replaced by the following commodity.
Great improvements in environmental management have been achieved over the past year. All storm water is collected in settling ponds before it is
recycled into dust suppression systems which has made a noticeable difference to the working conditions and test results. Numerous green zones have been created and over 700 plants, shrubs and trees were planted in a concerted effort to improve the aesthetics on the site.
Bulk Connections is continually improving handling methods, efficiencies and above all environmental management, striving to be the benchmark in environmental practices in Southern Africa.
 
 
Growth in South Africa is key for Stewart Group
With coal imports into Western Europe rising, South Africa is a key area for Stewart Group, the global provider of inspection and analysis services for metals, minerals, ores, precious metals and solid fuels.
Stewart Group has had a presence in South Africa for more than ten years and continues to invest in technology to develop the services offered. The company boasts accurate precision analysis with fast turnaround times in one of the world’s key mineral areas.
The group has a full-service analytical laboratory in Johannesburg which offers a comprehensive service for key mining regions across the country. Meanwhile, the facility in Durban provides sampling and analysis services for commodities using wet chemistry and modern instrumentation techniques.
Carol le Cordeur, Stewart Group’s general manager in South Africa, said: “Our sites in South Africa offer a much-needed service to our customers. We are credited for the reliability and accuracy of our results as we continue to achieve market leading turnaround times. South Africa is a key market and the services offered here by Stewart Group put us at the head of the field.”
Stewart Group’s South African facilities serve the concentrates, ores, solid fuels, precious metals and ferro-alloys markets. The laboratories in Johannesburg, Durban and Richards Bay include equipment to analyse a wide range of materials and prepare samples. Stewart Group has reacted quickly
to changes in the market.While parts of Europe have seen falls in coal production, the South African market has grown considerably in recent years.
Chris Walker, Stewart Group’s commercial director, said: “Companies that are flourishing are those that are adapting to changes in the market. Europe is a vitally important area for us and one that we are committed to. We continue to react to the demands of our customers and our world-leading facilities in areas like South Africa put us in a great position to do that.”
Stewart Group also boasts inspection and analysis laboratories in the UK, Germany, Belgium and Rotterdam at Europe’s largest coal and ore terminal.
The group’s Rotterdam facility is the Centre of Excellence for handling coal and other mineral imports from Europe, particularly the growth markets in the east. Stewart Group has a dedicated team of experienced surveyors and technicians who work on every stage of the sample and analytical processes.
Chris Walker said: “We believe we are well-placed for future growth and changes in the global inspection and analysis market. However, we are not resting on our laurels. We will continue to improve the service we offer our customers, whether in South Africa, Europe or elsewhere.”
 
Maputo Port in focus
US$ 225 million dollars has been invested in Maputo and Matola Ports over the last eight years and cargo handled has increased from 5mt (million tonnes) in 2003 to predicted volumes of 12.6mt for this year.
These figures were quoted by Jorge Ferraz, CEO Maputo Port Development Company (MPDC) at a conference in Maputo on 1 June 2011. He went on to say that volumes handled are expected to double in the next four years and grow to about 50mt by 2030. Investment in equipment and infrastructure has made a significant contribution to the growth and it is expected that a further $750 million will be invested over the next 20 years. The vision and leadership of the Mozambican government as well as the alignment of Transnet Freight Rail (TFR), CFM, Grindrod and DP World have all contributed to this success story. “We commend TFR on improved efficiencies. By sweating their assets they have managed to reduce turnaround time of the trains from 200 hours to 90 hours on the Maputo corridor,” said Dave Rennie, chairman of MPDC and CEO Grindrod Freight Services.
This was the good news communicated at the first Maputo Port conference hosted by MPDC, in which CFM, Grindrod and DP World are shareholders. The objective of the conference was to share with all stakeholders the achievements and successes of the port since the concession was granted eight years ago. In 2010 MPDC received an extension to its port concession to 2043, providing a timeline for the implementation of a port masterplan and for the sub-concessionaires to undertake additional investments.
In his opening address, the Prime Minister of Mozambique, Aires Bonifa´cio Aly, highlighted the enormous opportunity for economic growth in Mozambique driven by the continued demand for commodities. Maputo provides an ideal corridor for
the export market. His Excellency’s sentiments were echoed by the vice Minister of Planning and Development in her key note address. Infrastructure development is essential, as global economic growth is dependent on Africa’s commodities. The demand for commodities will continue to be driven by growth in China and India. MPDC and its sub-concessionaires have the capital, skills and experience to deliver on these demands.
The port masterplan includes numerous projects.The first major capital project which was jointly undertaken by CFM, Grindrod and DP World was the dredging project and this was successfully completed in January of this year.
Also part of the port masterplan is the development of Grindrod coal terminal (Terminal de Carva~o da Matola). Phase 3 of this development which included the installation of a new ship loader and a new stacker/reclaimer was completed earlier this year. This recent expansion has increased the terminal’s capacity to 6mt per annum. The terminal has operated at full capacity since TFR’s upgrade to the rail infrastructure and since the improved efficiencies by TFR.
Phase 4, which will expand the capacity to 20mt and more, is in feasibility planning stage. This will require excavation and land reclamation, the construction of two new berths, a stockyard and railway infrastructure. The final terminal footprint will be in the region of 120 hectares (excluding any reclaimed areas).
Since rail infrastructure is a key aspect to the success of TCM and other terminals, Grindrod will continue to work closely with CFM and Transnet Freight Rail.
The chairman of CFM, Rosario Mualeia, in his presentation to the delegates, said that CFM are fully committed to delivery of the port masterplan and are working together with the sponsors (Grindrod and DP World) to ensure its success.
Mr Siyabonga Gama, the CEO of Transnet Freight Rail shared with the audience Transnet’s improved efficiencies, how this will further be rolled out, future expansion plans, as well as Transnet’s commitment to the development of the Maputo corridor.
Alan Olivier, CEO of Grindrod Limited, said: “We believe that the demand to move cargo through the coal terminal will continue to grow and we are gearing up to accommodate this increased demand for capacity from both established and junior miners. We look forward to continued interaction with TFR and CFM, building on our relationship with the Mozambican Government and working together with all stakeholders to optimize trade through the port of Maputo.”
 
Transnet dry bulk market info
Dry bulk cargo represents a significant aspect of Transnet Port Terminals’ (TPT) cargo-handling activities at Richards Bay Terminal, Bulk Terminal Saldanha, Maydon Wharf Agriport, East London Combi Terminal and Port Elizabeth’s Bulk Terminal.
The major bulk commodities are, however, transported through Richards Bay and Saldanha.  Accessible via road and rail, the Richards Bay Terminal occupies an area of 135,187 hectares (ha) within the port. The terminal currently handles a total of 18mt (million tonnes) of cargo annually. However, the total capacity of the terminal is currently estimated at 21mt.
Equipment
TPT has embarked on a rigorous replacement equipment process starting with a new loader and unloader, arriving in 2012. This will also ensure that the terminal assists South African industries to become major role players in international markets.
 
BULK TERMINAL SALDANHA (BTS)
Saldanha is the deepest natural harbour in South Africa with a draught restriction at high tide of 21.5m. It can accommodate Panamax and Cape size vessels with deadweights of approximately 300,000t.
Bulk Terminal Saldanha is situated about 140km northwest of CapeTown.
Commodities
BTS houses South Africa’s only dedicated iron ore facility — the largest of its kind in Africa.
Capacity and trade Volumes
To date approximately 700mt of iron ore has been exported through this terminal.
The 2010/11 financial year has seen 5mt of iron ore loaded in one month (April 2010), a historical first which it hopes to sustain in the near future. The year-to-date export figures for April to July 2011 are 17mt, or more than 5% above budget.
 
RICHARDS BAY TERMINAL
Transnet Port Terminals (TPT) Richards Bay boasts a total of 13 berths handling dry bulk ores, minerals and break-bulk consignments, with just over 1,000 people in its employ.
Commodities
The terminal exports over 30 varied commodities from magnetite to ferrochrome, woodchips to aluminium and steel. This mainly to the United Kingdom, United States of America, India, the Middle and Far East and Pacific Rim countries like China. Over 15 imported commodities including sulphur, coking coal and alumina go through the port annually from countries like Australia, Canada and West African countries like Togo.
Capacity and Trade Volumes
A large percentage of dry bulk commodities are handled via a computer-controlled network of conveyor belts extending 40 kilometers to seven harbour bound industries. These transport cargo between the quayside and the respective manufacturers.
Break bulk cargo on the other hand, include unitized commodities such as pulp, paper, steel and granite as well as bulk products that are shipped via skip-loading operation.
Equipment
The terminal managed to improve its loading efficiencies by implementing regular dual loading processes for iron ore vessels above 80,000dwt. Dual loading involves using two ship loaders simultaneously to load a vessel.The terminal managed to achieve an average loading rate close in excess of 6,900tph for the 2010/11 financial year.
BTS’s handling equipment includes two tipplers used to off load iron ore wagons, four stacker reclaimers to stack iron ore onto the stock pile, and reclaim it again for export purposes, two conveyor systems to transport iron ore from the stockpile to the quay-side, two shiploaders for loading vessels one at a time.
 
PORT ELIZABETH BULK TERMINAL
The bulk terminal has two berths of 360m in length and a draught of 12.2m.
Commodities
The terminal is equipped to handle 5.5mt of manganese ore per annum.
Capacity and Trade Volumes
The terminal handled 3.2mt in 2007/8. During 2008/9 there has been a significant dip in volumes to around 2.75mt as a result of the global economic downturn. It recovered in the following two years to 3.4 and 4.3mt respectively.
Equipment
The PE bulk terminal’s equipment includes two tipplers, two stackers, three reclaimers, two ship-loaders and four storage bins.
New developments
Refurbishment of the manganese export facility took place in 2009/2010. The refurbishment is valued at R600 million and has resulted in improved safety, environment and an ensured export capacity ramping up to 5.5mt for the next five years. Currently the throughput is approximately 4.2mt per annum, it is the greatest reserve in South Africa, Port Elizabeth Prime export route for manganese ore.
Planned rail and shipping maintenance is conducted at the Bulk Terminal on a regular basis.
 
Capacity
  • 400,000 tonnes stockpiling
  • 5.5 million tonnes annual throughput
  • 1 berth
  • 1,250tph handling rate
 
EAST LONDON COMBI TERMINAL
The Bulk Terminal is serviced by S and T Berth, which are both 194m in length with a draught of 10.4m.
Commodities
The terminal is equipped to handle import, export and coastwise cargoes ranging from cars to livestock, wheat and other grain.
On the West Bank stands the largest grain silo on the South African coast through which grain (primarily maize) is exported whilst wheat is imported for the local millers. Design storage capacity for the grain elevator is 76,000 tons.
Capacity and trade volumes
The East London Bulk Terminal remains one of the most efficient dry bulk terminals in the country.
With its storage capacity and efficiency it was able to attract and handle 28,175 tonnes of export maize, 111,929 tonnes of imported wheat in 2010/11 financial year. The lack of maize export volumes was attributed to unfavourable market conditions. For the current financial year the
latest estimate for maize export is in excess of 250,000 tonnes. Sustainability of the East London grain elevator can be attributed to the continuous improvement of operational processes and well trained employees.