Daewoo Shipbuilding & Marine Engineering, the South Korean shipping giant, is interested in establishing a shipyard next to Richards Bay Coal Terminal (RBCT) to service the carriers that operate in southern African waters, reports Business Day.

A delegation from Daewoo is due this week for further discussions,according to department of transport director-general, George Mahlalela.

While half of SA’s gross domestic product is derived from trade and 98% of the goods are seaborne, SA has no industry or facilities that are able to service this traffic.

Daewoo and the government see potential for a shipyard serving the large volumes of traffic passing through SA’s waters. "The South Koreans want to set up a ship repair yard and are really pushing for these things. They are keen," Mahlalela said.

The shipyard may cost R40-billion to build and would form the platform for the company to extend other services in Africa in future. Mahlalela said Daewoo Shipbuilding had identified land owned by Transnet next to the terminal for the development.