TNPA,UAL deal may be on again
According to Business Report, the Transnet National Ports Authority (TNPA) scrambled this week to repair its damaged relationship with a Dutch-based shipping company - Universal Africa Lines (UAL). In September last year the TNPA declared UAL the preferred bidder for two sections of land on either side of a berthing quay under a 15-year lease.
UAL was then poised to invest hundreds of millions of rand into transforming a section of the Saldanha Bay harbour and emerging industrial development zone (IDZ) into an oil and gas servicing hub.
Difficulties in the relationship appeared when UAL demanded that a TNPA building - on one of the parcels of land - be removed at TNPA's cost. UAL also complained about the costs of repairing a harbour wall. Roger Jungblut, the chief executive of UAL, told Business Report that the negotiations with the Transnet subsidiary had been characterised by red tape. In January his company wrote a letter to the TNPA chief executive, Tau Morwe, indicating that it would withdraw from the project.
Renewed discussions between UAL and the TNPA in the last few days followed a campaign by the SA Oil & Gas Alliance and the Cape Chamber of Commerce and Industry. These groups expressed concern that the hub investment would be lost. Western Cape Finance MEC Alan Winde also complained about the sluggish approach of the TNPA in dealing with potentially massive investments by multinational companies. The TNPA approached UAL to see if the two parties would return to the negotiating table. UAL shipping head in South Africa Annalize Krause reported that UAL had "a positive meeting" with TNPA representatives. She indicated that UAL would return to its original plan to develop an oil and gas supply base in Saldanha Bay.
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