Transnet seeks liquid bulk terminal proposals for Port of Ngqura
Transnet National Ports Authority has issued a Request for Proposals for the appointment of a terminal operator to fund, design, develop, construct, operate, maintain and eventually transfer a liquid bulk terminal at the Port of Ngqura, for a concession period of 25 years.
In what Transnet described as the first step to move the tank farm at the Port of Port Elizabeth to the Port of Ngqura, the parastatal has issued a request for proposals from operators to run a new tank farm at the new location.
'The RFP is a ground-breaking milestone in the relocation of the tank farm from the Port of Port Elizabeth to the Port of Ngqura, in line with approved port development plans. The move comes as Transnet is implementing its Reinvent for Growth Strategy, which seeks to transform and grow the business. The new terminal will include liquid bulk storage tanks, road tanker loading gantries, pipelines and the necessary terminal operation infrastructure,' the statement reads.
It continued that the landside operation of the proposed terminal was earmarked for the port's liquid bulk precinct located at the eastern extents of the back of port land adjacent to the N2.
'Future developments planned for this precinct will be further developed for energy-related commodities such as liquefied natural gas,' the statement said.
'[The new terminal] is intended to foster regional and national economic growth while ensuring environmental sustainability,' said acting general manager for commercial services at TNPA (Transnet National Ports Authority), Dr Dineo Mazibuko.
'TNPA takes pride in the Port of Ngqura being the only South African commercial seaport in possession of an environmental authorisation for its port operation. In keeping with this green status, the appointed terminal operator will ensure compliance with all relevant environmental, safety and regulatory standards,' Mazibuko said.
Decades in the making
The moving of the tank farm from the Port of Port Elizabeth has been decades in the making.
In 2011, the transfer of the tank farm was stalled due to 'insufficient customer commitment'.
Eleven years later, responding to a parliamentary question in 2022, former minister of public enterprises, the late Pravin Gordhan, explained the reason for further delays:
'The delay in the relocation of the fuel tank farm was due to the inability of an operator that was appointed in terms of Section 56 of the National Ports Act, to achieve a commercially viable business case for the proposed terminal, and thus a decision was taken to discontinue the project.
'Subsequently, Transnet supported the Coega Development Corporation (CDC) in developing the liquid bulk facilities in Zone 5 of the Special Economic Zone (SEZ) in view of the advanced progress the CDC had made with the development of their liquid bulk storage facility.
'The Transnet National Ports Authority has given termination notice to Astron Energy (Pty) Ltd, Engen Petroleum Ltd, and Total Energies Marketing South Africa (Pty) Ltd (Oil Majors) who operate the Liquid Bulk Terminal in the Port of Port Elizabeth, effective 30 April 2022. As a result of this termination notice, the Oil Majors have lodged an appeal to the Ports Regulator of South Africa (PRSA) contesting this termination.
'A firm timeline for the relocation cannot be determined until such time that: TNPA and Astron settle the PRSA matter. There is a firm commitment from the Oil Majors to commit to commercial offtakes with the CDC or a liquid bulk storage facility operator appointed by the implementing agent, CDC.
'In October 2020, the Department of Forestry, Fisheries and the Environment (DFFE) issued a Remediation Order in terms of Part 8 of the National Environmental Management: Waste Act of 2008. This Remediation Order will regulate how the Oil Majors will undertake the decommissioning and remediation of the Port of Port Elizabeth's liquid bulk terminal. TNPA has initiated negotiations to conclude a Decommissioning and Remediation Exit Agreement.
'The Oil Majors have cited that this Agreement cannot be finalised without the PRSA appeal being determined and for realistic timelines for the relocation to the Port of Ngqura/CDC SEZ being agreed to,' Gordhan said at the time. DM
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