TNPA AND CITY OF UMHLATHUZE PARTNER FOR ECONOMIC GROWTH AND INFRASTRUCTURE DEVELOPMENT
Transnet National Ports Authority (TNPA) and the City of uMhlathuze today renewed the first Memorandum of Understanding (MOU), first signed in 2018, to strengthen collaboration in promoting economic growth, infrastructure development, and sustainable urban and port planning in Richards Bay.
This strategic partnership reaffirms the long-standing relationship between TNPA and the City and establishes a common platform to promote shared objectives and advance mutually beneficial initiatives. The agreement aims to create mechanisms for executive-level collaboration, effective dispute resolution, and coordinated project implementation – ensuring both entities can identify and collectively secure funding for essential projects.
Acting TNPA Chief Executive, Phyllis Difeto welcomed the continuation of the partnership, emphasising its importance in aligning national port priorities with local government development goals. “The MoU with the City of uMhlathuze reinforces our joint commitment to creating a thriving regional economy through collaborative planning and infrastructure delivery. Together, we are shaping a more integrated and efficient development landscape that benefits both the Port and the City, while unlocking new opportunities for investment and community growth,” said Difeto.
The renewed MoU builds on the achievements of the recently concluded five-year agreement, which delivered significant milestones. Between late 2021 and the end of 2023, TNPA and the City successfully addressed truck congestion in and around the port precinct. This collaboration paved the way for the development of the City’s truck staging facility in 2024 and the initiation of critical road construction projects within the port later that year, interventions that have improved traffic flow, enhanced safety, and supported more efficient logistics operations.
Another notable success was the joint beach replenishment campaign. In addition, TNPA and the City concluded a lease agreement for the Alkantstrand beach parking area, which will serve as a casting yard for the North Breakwater Upgrade Project scheduled to commence in mid-2026. This initiative underscores the partners shared commitment to balancing infrastructure development with environmental stewardship.
There are other mutually beneficial projects that are in the pipeline pending finalisation. These initiatives are expected to deliver significant economic benefits to both the City and the broader region, with the surrounding communities being the primary beneficiaries. This underscores the importance of fostering strategic partnerships that drive inclusive growth and shared prosperity.
The MoU focuses on key areas including economic growth, infrastructure development, operational efficiency, and governance structures that will ensure coordinated execution of strategic projects. Notable initiatives under this partnership include the reclamation of Alkanstrand Beach and land exchange projects, both of which form part of broader plans to enhance port-city integration and improve the local tourism and investment climate.
“As the City, we welcome the objectives that are in the MOU. The City fully embraces the cooperation and commitment in collaborating on strategic operational catalytic development, safe and security environmental infrastructure of mutual significance. Therefore, the city commits to work within the guidelines of this MOU,” said the City Mayor, Councillor Xolani Ngwezi.
The MoU is valid for five years and supports strategic initiatives such as collaboration on the Ports Master Plan, upcoming investments including the Container Handling Facility and Liquefied Natural Gas (LNG) projects currently on the pipeline. These projects are expected to further boost the regional economy, drive tourism, and enhance Richards Bay’s role as a key economic hub in KwaZulu-Natal.
This partnership reinforces TNPA’s mandate to enable efficient and sustainable port operations while supporting the City’s developmental agenda – ensuring that Richards Bay remains a cornerstone of South Africa’s maritime and industrial growth.
Source : TNPA
