Transnet considering investment on the West Coast.

State freight logistics group Transnet, in consultation with manganese exporters, expects to decide within the "next four to five months" whether to develop a new export channel through the deepwater harbour at Saldanha Bay, on South Africa's West Coast, or to proceed with an alternative model involving ports on the country's eastern seaboard.

Acting CEO Chris Wells tells Engineering News Online that the group is also interrogating several possible private-sector participation (PSP) models for the two alternatives, both of which would involve "significant investment".

He refuses to be drawn, however, on the amount of capital that could be involved, or on the nature of the partnerships being investigated, saying only that the PSP model is integral the plan and is being canvassed with the miners as the studies progress.

For their part, the miners involved (BHP Billiton, African Rainbow Minerals and Assore) have indicated previously that they would prefer to "go west", and convert the high-performance Sishen-Saldanha line into a dual commodity channel for iron-ore and manganese.

That said, they have supported Transnet's investigations into both a western corridor, as well as an eastern corridor involving the harbours of Port Elizabeth, Ngqura and Durban. Still, the miners feel that greater efficiencies would be possible on a channel that is dedicated to bulk commodities, rather than one that will also have to cater for general freight.

Currently, the Sishen-Saldanha heavy-haul line is dedicated to iron-ore exports, and has emerged as Transnet Freight Rail's (TFR's) top performing corridor during 2009.

In the six months to September 30, export tons increased by 32,7% to 21,1-million tons in line with contractual commitments TFR has with Anglo American's Kumba Iron Ore and Assmang, the joint venture between African Rainbow Mineral and Assore.

The manganese miners would like to have access to this channel so as to boost exports from the Kalahari manganese field to some 12-million tons a year, from the current position of around five-million tons yearly, most of which is currently moved through the depth- and land-constrained harbour at Port Elizabeth.

The Port Elizabeth channel has a theoretical capacity of six-million tons yearly, but it is unlikely that this nameplate will ever be achieved, owing to a number of constraints, especially relating to stockpiles.

"The big issue is that there is demand from the industry for a 12-million ton business, which is a massive ramp-up," Well explains.

Under the current configuration, the yearly peak is expected to be about seven-million tons, with Port Elizabeth probably only able to handle 4,5-million tons and with Durban in a position to handle up to 2,5-million tons.

So, to reach the 12-million target, there are only two alternatives: to develop a terminal at the new deepwater harbour at Ngqura and continue using Durban for the overflow; or transform the bulk terminal at Saldahna into a dual commodity facility for iron-ore and manganese.

The iron-ore channel was in the process of being ramped up from 47-million tons to 60-million tons, but significant levels of capital will be required to go beyond that level.

"To move to 80-million tons, which the iron-ore industry wants, will require massive investment into new infrastructure and rolling stock," Wells outlines, adding that any move towards the 100-million ton level once mooted, "looks prohibitively expensive".

However, a combined 90-million ton channel, with 78-million tons for iron-ore and 12-million tons for manganese, "looks full of potential"- this is reportedly because there would be a greater sharing of risk, especially at the port, than would be the case if only one commodity was involved.

"Either way, the investment would be significant, and while we could probably cater for it on our balance sheet, we would probably look at some kind of PSP with the miners," Wells concludes.

Story by Terance Creamer of the Engineering News

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www.pencil.co.za

PETROSA Saldanha Bay

PETROSA has thrown open the doors for other potential users of the oil storage facilities at Saldanha Bay and at Milnerton, in Cape Town.

Many potential customers have reportedly shown great interest in using the spare capacity at the tank farm at Milnerton in Cape Town.

The Milnerton tank farm includes 39 crude oil above-ground storage tanks. Only between five and eleven of the tanks are in use. This leaves the possibility of contracting out up to 28 of these tanks to either a local or overseas customer.

The present oil market is in ‘contango’, a term used in the oil trade to describe a situation where higher oil prices are anticipated. The oil price has halved in recent months. Oil traders are storing oil in anticipation of price increases. Storage facilities throughout the world are in short supply. This creates the possibility that South Africa may find a local or international customer for its additional storage capacity at Milnerton, CBN reported in April.

The hiring out of storage facilities is a highly lucrative business. The Strategic Fuel fund has shown annual profits in access of R150 million for the past three years, and this has mainly been due to its letting contracts for the oil storage tanks at Saldanha Bay.

The Saldanha tank farm consists of six huge concrete containers, which hold 7.5 million barrels of oil each. Built partly underground it has a total capacity of 45 million barrels of oil, which makes it the biggest oil storage facility in Africa, and one of the biggest in the world. A measure of its size is that it would take the cargoes of between 20 and 22 very large oil ships before the tanks are full.

South Africa’s strategic fuel supply of some ten million barrels is stored at Saldanha. One tank is allocated to Chevron and the additional capacity is used by foreign oil merchants. This has become a highly profitable operation.

The Saldanha oil facility was built at a time when South Africa was facing an oil embargo, and could have become a ‘white elephant’ once that threat was removed.

Strategic oil stocks held at Saldanha, as well as eight disused coal mines at Ogies in Gauteng , were drastically reduced. Aggressive marketing found customers in Britain and Switzerland for the spare capacity in Saldanha, and a potential liability was turned into a profitable foreign exchange earner for South Africa.

News taken from http://www.cbn.co.za

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Mykonos Casino Langebaan

WHILE Sun International is celebrating the award of a new 15 year casino licence for its Boardwalk casino in Port Elizabeth, it seems as if the gaming giant’s dominant hand in Cape Town is set for a shuffling from a West Coast rival.

Last month Gold Reef Resorts – the owners of two Western Cape gaming licences in Mykonos and the Garden Route – signalled its intention to challenge Sun International’s exclusive casino licence in Cape Town.

The move, according to reports, would entail moving the Mykonos licence from its current location near Langebaan closer to Cape Town.

Such a move would have a major impact on Sun International, which scores substantial profits from its GrandWest casino in Goodwood.

In the year to end June 2009 the GrandWest casino – despite a fall in revenues and profits - generated turnover of more than R1.6 billion and R675 million in gross profits.

That means GrandWest accounts for 22% of Sun International’s annual revenue, and a chunky 28% of gross profits.

Currently Sun International holds the exclusive Cape Town licence until the end of 2010. Business Day quoted Gold Reef’s CEO Steven Joffe as saying he was “keen to explore the option of opening a casino nearer to Cape Town…”

Interestingly, Sun International also faced challenges to its dominant position in the Port Elizabeth market, where there were rumblings last year that other bidders could muscle into the windy city’s casino industry. (see accompanying story on the PE casino drama).

CBN notes that the renewal of Sun International’s Port Elizabeth licence comes at quite a cost – new investments of R1 billion, which will include a five star hotel, an international convention centre and a water tunnel (supposedly set to be the longest in the world).

Presumably the large amounts invested by Sun International into GrandWest will come into consideration when negotiations around exclusivity are tackled. No doubt future investments into GrandWest and surrounds will also be a key consideration.

Speaking to CBN, Joffe explains that Gold Reef will approach the Western Cape government with a scheme that requires gaming participants to pay for casino exclusivity in Cape Town after the end of 2010.

He suggests such a scheme will bolster government coffers in terms of social spending.

One can understand Gold Reef’s desire to bring its machines and tables closer to Cape Town. At the moment the West Coast economy is not looking terribly conducive to vibrant discretionary spending or as a location to attract swarms of well-heeled visitors.

Asked how Gold Reef would deal with a casino licence in Cape Town, Joffe says compensatory investments will need to be made in Mykonos.

He says this can entail Limited Payout Machines, bingo centres or the construction of a hotel. “We would have to make sure we take care of all staff.”

Commenting on Gold Reef’s interim results to end June, Joffe notes that the economy in the Western Cape is one of the hardest hit with the property and tourism sectors most significantly affected.

He adds that provincial gaming revenue dropped 8%.

Joffe says revenue at the Mykonos Casino fell 2% to R55 million, which he believes is an acceptable achievement considering the difficult market conditions as well as a decline in footfall of 15%.

He says the refurbishment of the casino has been completed and 22 slot machines have been added to the gaming floor.

Although Joffe says costs are well managed, gross profits from Mykonos dropped 8% to R22 million with the trading margin squeezed to 40%.

Interestingly, it is the Garden Route casino that actually did worse than the Mykonos casino in the stagnant Western Cape market.

Interim figures released by Gold Reef shows the Garden Route Casino near Mossel Bay dropping turnover by 6% to R76 million on the back of a 5% slowdown in footfalls. Gross profits slipped 15% to R34 million.

Despite the fall-off in revenue and profits the casino will go ahead with planned capital expenditure of R37 million to add 36 new slot machines as well as general improvements to the gaming floor and food/beverage facilities.

It’s quite possible that the Western Cape gaming pie has also been affected by Sun International’s recently opened Golden Valley casino in Worcester starting to hit its straps.

The Golden Valley casino turned over a not insubstantial R109 million in the year to June 2009, and managed operating profits of some R34 million.

This article was taken from http://www.cbn.co.za website

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Lagoon Life Festival, Langebaan

The inaugural Lagoon Life Festival will take place in Langebaan this coming weekend 24 & 25 October. The Festival has its roots dating back to 2003 when the first paddling race organised on the Langebaan Lagoon was staged. This event has evolved, thanks to major input from Driftwoods Restaurant, who have sponsored the event for the last 6 years. Last year saw the addition of a Sunday paddling race and 2009 sees the transformation into a major outdoor sporting festival. Among the new events on offer this year are; Stand-Up-Paddling, Kitesurfing, Sailing, Trail Running and Mountain Biking. The unique Lagoon and weather conditions at this time of the year lend themselves to making these types of events spectacularly successful.

There is something on offer for everyone, with watersports leading the way as well as land-based for those who prefer to keep their feet dry. The paddling, SUP, running and Mtb events all offer an option for children to take part as well.

Registration online or on Friday night @ Driftwoods, Langebaan 1800-2100

www.lagoonlife.net

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Three Cities bags Queensgate Hotels management account, Shelley Point Hotel is part of the group.

Three Cities Management Limited (“Three Cities”) today announced that they have entered into an agreement with Queensgate Hotels & Leisure Limited (“Queensgate”). The agreement will see Three Cities taking over the management of all Queensgate Hotels with immediate effective, on a fee sharing basis. The deal will see the Three Cities room stock grow by an additional 600 rooms within 8 hotels and by early 2010 a further 400 rooms – putting the growth at almost 50% over the next 6 months.

Mike Lambert, Chief Operating Officer of Three Cities commented, “We are excited about the long term opportunities that this reciprocal agreement brings. Our alliance will enable us to capitalise on each other’s strengths and focus on core competencies, where we look forward to developing internationally and growing our local destinations.”

Another opportunity will see Three Cities offering the hospitality industry training in world class Spa operations, based on Queensgate’s One Wellness Spa Division, this will be offered by Three Cities educational training division The International Hotel School.

The second phase of the symbiotic relationship will see Three Cities hand over its hotel development opportunities to Queensgate Business Development, a subsidiary of Queensgate. This will effectively mean that all business development for both groups will be handled by Queensgate, being a core competency of theirs.

Three Cities Group manages and markets over 40 quality tourism and leisure properties. Their unique portfolios of properties include City Hotels, Resorts, Exceptional Safaris and the Exceptional Collection, as well as three campuses of The International Hotel School, an Equestrian Academy and the largest Marine Theme Park in Africa – uShaka Marine World in Durban. Their highly regarded services will give the Queensgate hotel portfolio the management expertise, sales, marketing and online reservations, resulting in building the Queensgate individual properties reputation in the market place.

Queensgate Hotels and Leisure CEO, Andrew Hubbard, comments: “We are excited about this agreement which will not only see our hotels managed by the exceptional Three Cities, but also transfer reservations for our hotels to Three Cities’ sophisticated online reservation service which will enhance our customers’ experience. In addition, the link with Three Cities will strengthen the position of Queensgate hotels in the corporate, government and domestic sector, an area in which Three Cities has traditionally been and is very strong.”

The Queensgate portfolio being managed by Three Cities include the following:

• Park Inn, situated on the historic Greenmarket Square of Cape Town is ideally located for the vibrant business and government traveller, with 144, four star rooms.
• Hollow on the Square is situated in the heart of the city of Cape Town and within walking distance from the International Convention Centre (CTICC) and the V&A Waterfront. With stylish and modern accommodation this hotel offers 116 rooms in a 4 star environment.
• Cape Town Hollow Boutique Hotel, nestling in the shadow of Table Mountain. This 4 star Hotel offers stylish serene accommodation with spectacular views from its 56 rooms.
• Rockwell All Suite Hotel inspired by buildings from the turn of the last century in downtown Manhattan, New York, this 4 star executive apartment hotel displays an inherent richness and warmth in 55 apartments.
• Shelley Point Hotel, Country Club & Spa is nestled on the silvery white sands of lush green Peninsula Village of Shelley Point, on the Western Cape coastline. This 4 star, 80 room hotel is situated approximately 90 minutes from Cape Town.
• The Avenue Hotel was established in 1936, the 4 star Hotel is situated on the False Bay coastline in the small town of Fish Hoek and offers 51 en-suite rooms.
• The Alphen Hotel is a National Monument, a historic 21 room Country Manor House which offers more than just accommodation. It is the heart of a former Wine Estate, centrally situated in the Peninsula and at the gateway of the Constantia Valley and Wine Route.
• Tinga Private Game Lodge situated on the banks for the Sabi River in prime game viewing area of the Kruger National Park. This 5 Star lodge is located near Skukuza and has 18 chalets in 2 Camps.

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Langebaan Goes Ballistic Over Boom

Caitlin Ross

7 October 2009

The erection of a swivel-boom on the road between Langebaan and the West Coast National Park by property developers has enraged members of the Langebaan community who have fought a 20-year battle against development on the land.

Concerned Langebaan residents say it's the latest move by the developers to intimidate members of the community and a step towards the target of shutting off access to the road entirely.

The road is one of the two that lead directly to the West Coast National Park and the only one that links it to the town of Langebaan, and the question over whether or not the road is private or public is being disputed by both sides.

Developers Dormell 391 issued an official statement saying their proposed housing development in the buffer zone between the park and the Langebann urban edge - which is opposed by SANParks, the West Coast National Park and local community groups - has for five years been unfairly denied approval.

Dormell 391 claim to have a zoning certificate and the approval of a final court order for township development and if their development continue to be stymied will change their "current goodwill" of allowing the public to use the road and close it off, denying access to the park's northern gate and the beach at Shark Bay.

"The boom has been installed as the property is private property and we reserve the right to close it at our discretion and if our applications are not now finalized and the company continues to be so unfairly prejudiced," stated the company.

But various parties have rubbished the claim that the road is private property, saying it is a proclaimed public road under the jurisdiction of the district municipality. Email correspondence between convenor of the Langebaan Action Group, Johan Ackron, and Pieter Pienaar of the Department of Transport and Public Works, contains maps showing the road is marked "Afdelingspad 1162â-', a public road, the obstruction of which is illegal.

Manager of the West Coast National Park, Xola Mfeke, said he was "very concerned that traffic will be blocked" as 45 per cent of the Park's visitors (about 50 000 of the 130 000 people annually) enter the park through the northern gate.

"I don't believe he has a legal right to do it. I contacted the roads department in Ceres and they confirmed that it's a public proclaimed road. I'm just not happy that he has not consulted the neighbours in doing something major like that. It's not nice to wake up and see a boom outside your park. He's promised that he would not close it but I'm prepared to open an interdict against him if he does," said Mfeke.

The point of dispute arises over the fact that in 1991 the road was realigned from a gravel road, Ou Wit Pad, to the tar one currently in use. The realignment constituted a shift of 700 metres at its extremity and therefore did not require re-proclamation. The original gravel alignment of Divisional Road 1162 along the lagoon edge has, because of the realignment, fallen into disrepair and is no longer appropriate for alternative vehicular access to the Park. Ackron said that in the confrontation that has arisen over the opposition to the development proposals, the developers have at various points expressed the intention of impeding access to the Park over the land traversed by the said road 1162.

In addition to the boom, fencing and signage posts have been introduced at various points along the road to the park gate. Ackron said that "no development permission has been granted" regarding the land (Oostewal 292) that would motivate such structures. Ackron is petitioning the district roads engineer, who is currently out of office, to have all the structures removed.

Quoted from http://www.flyafrica.info

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Yzerfontein named as proposed site for third SA gateway

SA telecommunications network operators want to build a third international submarine cable landing station along the SA coastline to provide an alternative route for the landing stations at Melkbosstrand north of Cape Town and at Mtunzini north of Durban.

Speaking to TechCentral in Cape Town on Monday, Telkom executive for global capacity business, Johan Meyer (pictured), said the landing station would be built at Yzerfontein, 50km north of the Melkbosstrand facility.

However, the construction of the facility was dependent on the completion of a full environmental impact assessment. This assessment could take up to a year to complete, Meyer said.

He said it is now considered good practice for a country to have three international gateways to better cope with submarine cable outages caused by earthquakes, ships’ anchors and fishing trawlers.

Two international cables already land at Mtunzini, with a third, the East African Submarine System (Eassy), to land there next year. And Melkbosstrand is already home to Sat-3/Safe — which connects SA with Portugal and Malaysia — and Sat-2.

A third gateway would ensure that there is more than one fallback if there is a cut in connectivity at, say, Melkbosstrand.

The idea is to land the upcoming West African Cable System (Wacs) at the proposed new site at Yzerfontein.

Wacs is a high-capacity cable that will connect SA with the UK when it goes live in mid-2011. Telkom is an investor in Wacs. Other SA operators that have put money into its construction include MTN and state-owned Broadband Infraco. — Duncan McLeod, TechCentral

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