In a significant move poised to bolster South Africa’s energy infrastructure and economic future, Transnet National Ports Authority (TNPA) has announced the selection of five preferred bidders for the development of liquid bulk and green fuel terminals in the South Dunes Precinct of the Port of Richards Bay. This ambitious project, valued at a cumulative R17 billion, is designed not only to expand the port’s liquid bulk handling capabilities but also to play a pivotal role in the country’s transition to greener energy sources.
On Thursday, TNPA outlined its decision to award the long-term concession to the consortiums comprising KZN Oils, Linsen Nambi, Protank, the Bidvest-Mnambithi Consortium, and KNGM Engineering. This announcement follows a meticulous 17-month tender process that commenced in late 2023.
Captain Dennis Mqadi, the Port Manager of Richards Bay, heralded the announcement as a significant milestone, affirming that it will strengthen the port’s standing as a leading hub for liquid bulk and green fuel. “By securing long-term investment in critical infrastructure, we are ensuring the port remains globally competitive while contributing to South Africa’s energy security objectives,” Mqadi stated.
The development plan encompasses a comprehensive slate of operations, including funding, design, construction, operation, maintenance, and the eventual transfer of the terminals over a 25-year concession period. These terminals are strategically designed to handle a variety of essential petrochemical products critical to the nation’s economy, including diesel, petroleum, jet fuel, biofuel, hydrogen, as well as liquefied petroleum gas (LPG) and other derivatives.
TNPA highlighted that the expanded terminal capacity will not only facilitate economic growth but will also spur job creation and open pathways for new participants in terminal operations. The development represents a critical investment in South Africa’s logistics network and aligns with Transnet’s broader commitment to engage private-sector investment for sustainable infrastructure upgrade targets. Negotiations for the terminal operator agreements are set to commence shortly.
As South Africa continues to navigate its energy transition amidst global challenges, the developments at Richards Bay signal a decisive step forward in melding environmental priorities with economic imperatives.