Transnet was only prepared to pay R1-billion for the old Durban International Airport site, half the amount land owner Airports Company South Africa (Acsa) wanted, sources close to the matter told Business Report this week.
Although no formal offer has been tabled yet, discussions between the two parties have begun. The freight and logistics utility wants the land to build a dug-out port for R100bn.
Yesterday, the spokesman of Transnet, Mboniso Sigonyela, could not deny or confirm that the firm would offer R1bn for the 600ha site, but simply said negotiations with Acsa had begun and were going on.
“It would be inappropriate to comment on the details at this stage,” Sigonyela said.
Solomon Makgale, the spokesman for Acsa, said no offer had been received at this stage, but also confirmed that engagements with Transnet had commenced.
“Acsa recognises that the old Durban International Airport land is of strategic importance and has potential to unlock huge economic value for the KwaZulu-Natal province and the country. The intention is to sell a portion based on what Transnet requires and use the remainder to do our own development,” Makgale said.
Sigonyela could not say how much of the available land Transnet wanted. He said that the site was critical to the company’s container capacity expansion plans.
According to the national infrastructure plan, capacity will run out at the port of Durban by 2019.
Construction of the new port is expected to start in 2015 and be completed by 2019. Its annual container capacity is expected to be 6 million twenty-foot equivalent units, twice the capacity of the current port.
Makgale said Acsa had done a market valuation of the land, but would not disclose it. Last week, Acsa’s economic regulator said it had provided for R2bn income from the sale of old airport land when it considered the disputed tariff permission application.
“We can’t comment on the regulating committee’s views as we do not know the basis of its valuation. That said, it would be inappropriate to disclose the exact value at this stage,” Makgale said.
He added that Acsa was in discussions with other parties who were also interested in the land, but added that those were also in early stages. He declined to say how much Acsa would be prepared to settle for if it could not get the R2bn estimated.
Two weeks ago Public Enterprises Minister Malusi Gigaba said negotiations between the two organisations should be concluded within a year. - Business Report