MyPE

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Why R3 Million is the Magic Number (PER DAY) for the Much Proposed Waterfront

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What many people conveniently forget around the Manganese Ore being exported through the Port of Port Elizabeth is the vexing problem of what Transnet can do to replce the loss of turnover from this business.

And, before you jump in and say that it doesn’t matter as the facility will be bigger and better at the Port of Nqura so TNPA will not really be losing money lets take note of these things:

  1. Each Port is a business unit expected to turn a profit
  2. The Port Regulator does not allow cross subsidising across products or ports.
  3. The ‘motivation’ to keep the Port open, dredged and working to capacity will take a huge knock.

We at MyPE have trotted out estimates of just how much the Port of Port Elizabeth turnover from the Mangase Ore facility in the Port – our estimates have always run from R1 to R3.7 Million per day.

Think for yourself – if the much vaunted waterfront does become a reality after the Manganes Ore disappears will that facility be able to produce a turnover for TNPA of close to R4 Million per day?

I think NOT.

Anyway – we had a look at the TNPA financials for 2022 and extrapolated the following:

  • In 2022 TNPA Exported 14,48 Million Tons of Manganese – 2 MT below the budgeted target.
  • In 2022 TNPA exported 54,6 Million Tons of Iron Ore – 4.4 MT below the budgeted arget,
  • The line item in the TNPA Financial Statements for 2022 for Manganese Ore turnover from customers ALSO includes Iron Ore turnover for a total of R14 254 Million
  • Manganese Ore and Iron Ore accounted for 69.08 Million Tons export in 2022.

Using the figures above we extrapolated the following:

  • The amount of Manganese Ore exported per day was 2 987.81 Million – representing a R8.18 Million per day turnover
  • The mount of Iron Ore exported per day was 11 149.97 Million – representing R30.52 Million per day turnover.

According to the International Manganese Institute the Port of Port Elizabeth has the capacity to export 6 Million Tons of Manganese Ore per year.

This means that the Port of Port Elizabeth exported around 37.5% of the annual total or the equivalent of R3.06 Million per day in turnover..

Think of these numbers and how Transnet can replace the lost turnover from Manganese Ore.

Editor: Let’s not confuse turnover with profit people – turnover without profit is a bit like skommeling without relief!

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.