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KZN Logistics Hub (KZN-LH) Programme

Transnet National Ports Authority has launched a Mega Project – The KZN Logistics Hub (KZN-LH) Programme which will change the masterplans of the two ports in TNPA’s Eastern (KZN) Region.


KZN Logistics Hub Overview


The programme is an ambitious strategy, spearheaded within the` region, to expand, refocus and streamline the functioning of the Ports of Durban and Richards Bay.


To reach world-class status, the TNPA identified a need for a more synergistic and integrated approach towards the management of the growth and development of these ports. The establishment of the KZN Logistics Hub as an innovative programme which is geared towards ensuring seamless integration within the port system.


The KZN Logistics Hub seeks to reposition the Port of Durban as an international container hub and the country’s premier automotive port by increasing its container and automotive capacity, with the Port of Richards Bay serving as the country’s leading industrial port as a premier dry bulk and liquefied natural gas (LNG) port.


The KZN-LH Programme is based on 33 projects for the two ports’ masterplans, with an estimated investment of over R154 billion which is aligned to the Transnet segment strategies, addresses hinterland connectivity improve efficiencies making the ports globally competitive.


The Port of Durban Master Plan


Container Hub


The Port of Durban will be transformed into an international container hub. The current capacity is 2.9m TEUs. The planned future capacity is 11.4m TEUs, made up as follows:


Point Container Terminal - 1.8m

Pier 1 Container Terminal - 3.6m

Pier 2 Container Terminal - 4.4m

Maydon Wharf Container Terminal - 1.6m

Total – 11.4 million TEUs



Economic Impact


It is expected that:


R108 billion will flow into the regional economy,

R350 billion will be generated by new business sales opportunities,

R51 billion will be the cumulative increase in income, and

R16 billion will be derived from taxes.



Automative Terminal


Currently, the terminal has 13000 parking bays. At full development, it will have 15200 parking bays.



Investment Value


R72 billion has been earmarked for container developments

R24 billion for widening and deepening the port entrance channel

R22 billion for new developments at Island View



Job Creation


These developments are expected to generate 490 787 Full Time Equivalent (FTE) jobs during construction, of which:


57 126 would be direct jobs,

278 052 would be FTE jobs through secondary suppliers of new goods and services, and

108 810 would be FTE jobs, induced through the CAPEX of the developments




The Port of Richards Bay Master Plan


Dry Bulking Port


Berth expansions / developments include:


New Liquid Bulk Terminal New LNG Berth and Terminal New base for SA Navy Road upgrades



Economic Impact


It is expected that:


R20 billion will be injected into the regional economy,

R66 billion will be generated by new business sales opportunities,

R9 billion will be the cumulative increase in income, and

R3 billion will be derived from taxes.



Investment Value


R15 billion has been earmarked for berth expansions / developments,

R7 billion for the naval base, and

R3 billion for upgrading of roads.



Job Creation


These developments are expected to generate 82 951 Full Time Equivalent (FTE) jobs during construction, of which:


17 565 would be direct jobs,

49 995 would be FTE jobs through secondary suppliers of new goods and services, and

18 391 would be FTE jobs, induced through the CAPEX of the developments.






Making way for these projects

The South African Navy base at Salisbury Island in Durban will be relocated to the Naval and Pelican Islands in the Port of Richards Bay, with a navy satellite station in the Port of Durban. TNPA concluded a land exchange agreement with the City of uMhlathuze for purposes of port expansion, which have the Naval and Pelican Islands promulgated within the Richards Bay new port boundary.

Negotiations with stakeholders/clients are in progress regarding the relocation of dry bulk mineral cargoes from Durban to the Port of Richards Bay. TNPA is also working in partnership with the City of eThekwini, Ithala Bank and the Department of Economic Development, Tourism and Environmental Affairs (EDTEA) to develop the Durban Bay Waterfront.


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