The continued growth of South Africa's vehicle exports has encouraged the South African Ports Authority (Sapo) to consider building another vehicle terminal at Durban's port.

The continued growth of South Africa's vehicle exports has encouraged the South African Ports Authority (Sapo) to consider building another vehicle terminal at Durban's port.

The additional export contracts secured by local manufacturers, and government's review of the MIDP export programme, have motivated the port operations body to commission a feasibility study on a second terminal, the reports.

According to Sapo executive Nosipho Damasane the study will try to find ways to alleviate the congestion at the existing terminal. This terminal's capacity was almost doubled last year to accommodate 6 500 units, but its forecast traffic is expected to swell from 143 000 units last year to about 175 000 units in 2006.

The MIDP, currently under review, is credited with having increased the exports of locally assembled cars from under R1bn in 1995 to R19,4bn in 2003.

The Sapo announcement follows a proposal to build a car terminal in Maputo, Mozambique, which is perhaps more convenient than Durban for the Gauteng-based manufacturers.

The minister of trade and industry, Mandisi Mpahlwa stated recently that the local motor industry, with a gross domestic product of 7,1 per cent, now accounted for a bigger slice of South Africa's economic pie than mining.

Original article from Car