Fostering competition
with suppliers from
Australia, Chile and the US
TENDERS ARE due to be called for the construction of a new Richards Bay wood chip export facility on a 4,5 hectare site at the port of Richards Bay. The ShinCel chipping facility will cost R40 million and provide 40 new jobs once it is operational by the fourth quarter of this year. In addition, a further 300 jobs will be created downstream from a 'knock-on' effect.
The company says it will be competing with international suppliers from Australia, Chile and the United States and not with existing local wood chip operators who also operate out of the port. It says that Portnet's recent upgrading of the wood chip loading facility at Richards Bay will allow the port to handle these increased volumes.
South Africa currently supplies about 10% of the world market for wood chip and ShinCel will supply about 1% of this. The company says it plans to convert a small portion of the excess hardwoods in South Africa into jobs and foreign exchange.
BY TERRY HUTSON
