THE Transnet National Ports Authority (TNPA) has appointed Grindrod South Africa (Pty) Ltd as the Preferred Bidder to develop and operate a container handling facility at the Port of Richards Bay, reports Johannesburg's Railways Africa.

This initiative is part of TNPA's efforts to enhance port efficiency and service levels.

In line with the TNPA KZN ports master plan, it will increase the port's container handling capacity from 50,000 TEU to 200,000 TEU annually.

This decision follows a Section 56 concession process under the National Ports Act, which included issuing a Request for Information (RFI) and Request for Proposals (RFP) to the market.

With over 20 years of expertise in the container sector, Grindrod SA is well-positioned to lead the development and operation of this facility, which is scheduled to become operational in 2027.

The project involves an estimated capital investment of ZAR285 million (US$15.6 million), promising a significant boost to the region's container industry.

The project will stimulate economic growth, create jobs, and promote skills development in Richards Bay.

Grindrod SA, a Level 1 B-BBEE South African registered company, plans to partner with Eyamakhosi Resources (Pty) Ltd, a local entity within the Umhlathuze municipality, to ensure local community benefits.