Dual economic and supply chain boost as South African president launches multi-modal rail terminal and food processing facility.
President Cyril Ramaphosa officially opened two key infrastructure projects in Durban, KwaZulu-Natal, on Thursday, April 4th, 2024. The launch of the infrastructure project marks a significant milestone for South Africa’s investment drive in logistics. A national initiative led by the President to attract R1.2 trillion in investments over five years.
Newlyn PX Terminal: A Logistics Game Changer
The centrepiece of the inauguration is the Newlyn PX Terminal, located in Bayhead near the Durban port. The multi-modal rail terminal exceeded initial investment pledges by R2.6 billion and is hailed as the largest in Africa.
The Presidency highlighted the project’s 26-year development, showcasing its commitment to creating a “transformational logistics infrastructure” along South Africa’s major trade corridors. Industry experts recognize the Newlyn PX Terminal as a flagship development.
The project will significantly expand the country’s logistics capacity and enhance global competitiveness. Particularly within the National Corridor (NATCOR) trade route linking Johannesburg to Durban. Benefits of the terminal extend beyond efficiency. It will aim to facilitate a shift from road to rail freight transport, aligning with government objectives.
Tetra Pak: Boosting Africa’s Food Processing and Packaging
The second project was the new Tetra Pak manufacturing plant in KwaZulu-Natal. This R500 million investment by the world’s leading food processing and packaging company established the first state-of-the-art facility in Africa to produce carton aseptic packaging.
The plant caters to domestic and export markets, adhering to sustainability standards and promoting a circular economy. And has been hailed as a critical foundation for South Africa’s participation in the recently launched African Continental Free Trade Area (AfCFTA). It promises a wave of new export opportunities.
KwaZulu-Natal Anticipates Jobs and Growth
KwaZulu-Natal Premier Nomusa Dube-Ncube expressed optimism about the impact of both projects, stating the new terminal will generate “thousands of jobs” across various sectors. From trucking to support services. She emphasized the importance of the terminal in “re-attracting investors”. And positioning Durban as a competitive player within the regional logistics landscape.
A Bright Future for South African Infrastructure
The inauguration of these projects signifies a positive step forward for South Africa’s infrastructure development and economic growth. The Newlyn PX Terminal promises to revolutionize logistics efficiency. Meanwhile, the Tetra Pak plant strengthens the country’s position in the food processing and packaging sector.
With these developments, South Africa appears well-positioned to capitalize on the opportunities presented by the AfCFTA and solidify its role as a key player in African trade.
Obinabo Tochukwu Tabansi is a supply chain mastro and writer with a decade of experience working in different facets of the supply chain. Today he is living his passion for writing on all things supply chain. His blog, Supply Chain Nuggets, is Africa’s fastest-rising supply chain blog, helping professionals, business owners, and curious minds navigate the supply chain complexities on the continent.
