RICHARDS Bay was developed in 1976 primarily as a deep sea port to export coal and an array of bulk and break bulk cargoes.
More three decades later, nothing has changed.
Richards Bay is home to South Africa’s premier bulk port and housing a string of corporates, it is the industrial hub of Zululand and northern KZN.
As the port grew, so did the small, medium and micro enterprises which mushroomed to benefit from corporate downstream, service and supply opportunities.
While the good times rolled, the local economy accelerated, making Richards Bay one of the fastest growing cities in the country.
But our industrial hub now faces its biggest challenge yet. The effect of the brittle economy is raring its ugly head to the detriment of hundreds of employees who face a jobless year-end.
In 2013, there were reports of restructuring at several corporate giants, including among others BHP Billiton’s aluminium smelters, Richards Bay Minerals and most recently Foskor, where as many as 100 employees could face retrenchment by the end of the year.
There have also been persistent rumours of the possible closure of the Bayside Aluminium smelter, an employer to over 1 000 people.
The national power crises has also added to the fears of smelter closures or downgrades.
The economic ‘forces that be’ are pounding the industrial powerhouse of Richards Bay and a one-dimensional approach for the future will ensure its demise.
We accede that Richards Bay will forever have industry. It must have industry, but industry cannot function alone.
It’s actually a case of Richards Bay putting all of its eggs into one basket, namely industry. And this approach may not survive the test of time.
Back-up plan
Alternatives have only been spoken about, but now need to be vigorously pursued to overcome the economy’s adverse trading conditions.
What is needed now is a multi-pronged approach.
The uThungulu Growth and Development Summit this week explored such opportunities that should be implemented as a matter of urgency.
The tourism industry is one untapped pearl. With berths already full at the Zululand Yacht Club, buzzing with foreign visitors, the tourism industry still remains severely under-budgeted for and little has been done to capitalise on the region’s rich Zulu heritage points, wildlife and coastline.
When it comes to Tourism KwaZulu-Natal, Richards Bay seems to be but an after-thought, with Durban ironically punted as the gateway to the Zulu kingdom.
Richards Bay is the only coastal town with no property boasting a coastal view or road on the dunes.
Richards Bay needs a bigger basket incorporating agriculture, renewable energy, biogas opportunities and sustainable fishing among others.
If the industrial giant of Richards Bay falls, it will have an unthinkable domino effect.
The chain of corporates feed the hundreds of small businesses and emerging entrepreneurs, who will also drown with the corporate ship.
To a global conglomerate, closing a local operation has minimal effect on international bottom lines.
But for Richards Bay and Zululand, it’s do or die.
We need a back-up plan and we need it now.
