Cato Ridge Dry Port

Maersk Presentation - Cato Zulu / Cato Ridge Dry Port

Upside properties was fortunate enough to have been invited to a presentation hosted by Maersk at Cato Ridge Electrical. Hammarsdale Cato Ridge Development Association organized the event as they work closely with various industries and endeavors to connect people to stimulate economic growth in the area.

Maersk has in many ways taken the punt as the first significant corporate to buy into the Dry Port concept. Maersk is of the opinion that their involvement and commitment in the area will form part of the catalytic growth that the area so needs. Phase 1 was completed this week the 29^th August 2022. Currently the depot, which is an APM Terminal, consists of 25 000m2 and has an option for a further 15 000m2 in the future.

2/3 of cargo coming through Durban port heads up to Johannesburg and thus the location of the container depot has been strategically positioned. The focus is on the handling and storage of full and empty dry reefer containers and aims to focus on the triangulation of containers. The capacity being 1500 FEU (Forty-Foot-Equivalent-Unit) or alternatively 3000 TEU (twenty-foot equivalent unit).

The inland terminal aims to solve a key issue which is being experienced at the Durban Port: truck congestion has become rampant. Truck turnaround times at DCT (Delivered Container Terminal) are on average 4 to 6 hours vs an average of 30 minutes being experienced at an APM Terminal. Reducing the turnaround time of trucks will allow truckers to sweat their assets further. Ultimately every company utilizing warehousing and logistics will experience the benefits in cost and time saving.

The application for the depot to be a licensed inland port is in progress and is almost final. This will result in containers being delivered to the inland port via rail at the same cost vs a pick up at bayhead. Currently the rail is operated by Transnet, however, key independent operators have been identified to increase capacity. Maersk have gone from doing 20 FEU per week to 300 FEU per week over the last 4 years. The recent floods have affected capacity as the control centre in bayhead was flooded. The capacity is forecasted to be re-instated by the end of September.

The N3 corridor between Durban and Pietermaritzburg is undergoing large scale construction. Road areas are being widened and interchanges upgraded. A new interchange has been earmarked for Cato Ridge which will run around and behind the Dry Port in Cato Zulu.

In a nutshell, it is great to see a company of this magnitude invest their interest into the Dry Port. It has been a talking point for years, but over the last year commitment from government has taken the shackles off and progress is being seen at an exponential rate in comparison to previous years. There are concerns such as existing road infrastructure downgrading, but private sector drive in South Africa has more often than not saved the buck. One can only imagine the large warehouses and industrial parks that the area will boast in the years to come.