Transport Department approves Karpowerships to gain access to SA ports for 20 years

The Department of Transport has given the green light to controversial power supplier, Karpowership, to have access to the Ports of Ngqura, Durban and Saldanha Bay.

The Department of Transport has given the green light to controversial power supplier, Karpowership, to have access to the Ports of Ngqura, Durban and Saldanha Bay.

Published May 19, 2023

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Cape Town - The Department of Transport has given the green light to controversial power supplier, Karpowership, to have access to the Ports of Ngqura, Durban and Saldanha Bay for 20 years.

This comes as the company was assessing its options in South Africa after several challenges to its proposed gas-to-power projects.

The Department of Transport on Thursday said Minister Lydia Sindisiwe Chikunga considered the application in terms of National Ports Act Section 79 (1) (a) and (b) to safeguard the national security of the country and to discharge the international obligations of the republic.

“The National Department of Transport has today pronounced on the approval of the application to grant Karpowership access to the three Ports of Ngqura, Durban and Saldanha Bay for a period of 20 years. The application was approved by the Minister on 26 February 2023.

“The approval is in line with the National Ports Act No. 12 of 2005.

“This gives powers to the Minister to approve applications of this nature,” the department said.

It said the Transnet National Ports Authority (TNPA) was consulted and supported the approval of the application.

TNPA was instructed to consider the safety measures and operation of the directive. Conditions were attached in the approval.

“These include that TNPA reserves the right to include all the necessary commercial and safety requirements or agreements that are considered necessary during the period of the directive and that the directive is subject to all other government approvals.

“This includes approvals such as environmental approvals from competent government departments and/or authorities.”

Liz McDaid, Strategic Lead at The Green Connection however said South Africa was still a long way away from seeing Karpowerships at its ports.

“If you look at the small print, it says that in fact this is not a decision to go ahead, this is to say, providing the necessary approvals are in place they will be able to moor at the ports. So far, the environmental approvals have failed not once, but in terms of Koega, twice. And the generation licence is also under review by civil society organisations Outa and the Green Connection. I dont think that Karpower is coming here anytime soon.”

“In any case it's not going to help us with load shedding this winter. From the time they get approvals, they need 12 months (to supply the grid).”

“What we need is short term South African generation that can contribute to the grid very speedily.”

Cape Times