Creecy opens Durban fuel hub to black-owned players in bid to secure energy supply

Transport Minister Barbara Creecy has moved to open South Africa’s bulk liquid terminal sector to black empowerment players, while at the same time shoring up the country’s fuel security.

Creecy on Thursday instructed Transnet National Ports Authority (TNPA) to renew the leases of existing operators at Durban’s Island View precinct, a critical hub through which about 70% of South Africa’s fuel imports pass.

Using her powers under Section 79 of the National Ports Authority Act, Creecy bypassed the normal leasing process, citing national interest.

As part of the directive, Creecy ordered that the Central Energy Fund (CEF) — which acquired the Sapref refinery from BP and Shell in 2024 — be allocated 15% of Island View’s capacity, with the option to expand to 30%.

The CEF will serve as a third-party access point for emerging black-owned players who previously struggled to enter the market.

The directive, welcomed by the Fuels Industry Association of South Africa, ends years of wrangling over short-term leases that had discouraged investment and threatened security of supply.

"The Section 79 letter was issued to our members. It is in our favour. Remember we wanted a long-term tenure, so we got that," said Fani Tshifularo, CEO of the Fuels Industry Association.

This is as the CEF is still expected to comment on how the ruling could affect plans to revive the government's flood-damaged Sapref refinery and boost its oil trading division, both led by the national oil company, the South African National Petroleum Company, a subsidiary of the Fund.

The directive is conditional upon the TNPA concluding new terminal operator agreements (TOAs) with the entities by March 31, 2026.

Besides skills transfer and broad-based black economic empowerment commitments, the TOAs will include stipulations that the terminal infrastructure be transferred to the TNPA after 25 years, and that the entities make the capital investments needed to ensure that the terminals operate safely, continuously and efficiently.

"We support the Minister's call and would like to urgen her to increase the allocation to a higher number," said Kganki Matabane, CEO of Black Business Council.

"The ownership, management, and control of the economy should ultimately reflect the demographic of the South African population."

TNPA and the terminal operators would be expected to establish a framework governing third-party access to storage capacity within the precinct.

“This framework must ensure transparency of excess storage capacity and facilitate the allocation of specific dedicated capacity to support the entry of new market participants, in compliance with the regulations of the National Energy Regulator of South Africa,” Creecy said.

The CEF would also act as a third-party access point for emerging black participants in Island View, while Creecy had also granted CEF the right to build and operate a new single buoy mooring system “to further entrench access for the new SANPC”.

Creecy said the initiative attempted to achieve the twin policy objectives of facilitating transformation of a sector still dominated by well-established players, while supporting ongoing fuel security.

“In my view, renewing leases at the Port of Durban Island View will ensure fuel supply security for South Africa, provide certainty to tenants, and encourage long-term investment in the infrastructure," she said. 

"Bringing new players into the industry will not only expand participation but also ensure that all South Africans have a stake in the port operations."

It was also confirmed that the Minister had issued a separate directive to TNPA instructing that Astron Energy’s lease at the Port of Cape Town be renewed for 25 years.

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