CEO Mpumi Mpofu said ACSA, which did not purchase fuel but rather stored it, was “probably the biggest consumer of jet fuel by far” in South Africa. Picture: Nicola Mason/Independent Newspapers
Nicola Mawson
The Airports Company of South Africa (ACSA) has called on the Department of Mineral Resources and Energy (DMRE) to develop and implement a policy regarding strategic jet fuel reserves, especially given reduced local oil refinery capacity.
ACSA’s group executive of airport operations management, Terence Delomoney, told media at a briefing on Tuesday that, without such a solution, “then we run into trouble”.
Delomoney’s comments follow the shutdown of the National Petroleum Refiners of South Africa (Natref), which caught fire on the January 4 and is only expected to be operational again on February 20.
Natref supplies some 72% of OR Tambo’s jet fuel requirements.
In the interim, ACSA has secured 121.1 million litres of jet fuel for use at OR Tambo International Airport (ORTIA). The airport typically uses 3.6 million litres of fuel a day, although this has been trimmed to some 3 million on the back of some airlines finding alternative solutions such as refiling en route to South Africa, said Delomoney.
“We’ve managed to stretch out the resources that we have,” he said.
Delomoney said that the situation was “really of deep concern to the aviation industry” and that it was time to re-evaluate the value chain. He said, without sufficient reserves, “then we run into trouble”.
Ahead of a weekend deal, ORTIA had seven days’ worth of reserves, which Delomoney said was insufficient to “absorb a shock to the system”.
On the weekend, the National Department of Transport stated that the airport would be supplied with 121 million litres of jet fuel – which will be sufficient fuel for until 27 February, giving a seven-day buffer for the refinery to be up and running again.
The fuel is set to be imported through the Port of Durban via three vessels expected to arrive on 1 and 10 February.
Delomoney said it was key that there was a plan for Transnet to take the fuel to Johannesburg. This plan was set to be finalised by Friday this week.
During a meeting held last Friday, ACSA, the Fuel Industry Association of South Africa (FIASA) and Sasol, among other stakeholders, agreed that it was necessary to build a fuel reserve to serve as a critical safety buffer for unforeseen circumstances such as delays, diversions, or unexpected changes in flight conditions.
Delomoney said ACSA and the department had been engaging, “but we’d like to see this all come together”. He added that ACSA had asked the department to engage FIASA to implement fuel sharing.
He said Transnet’s pipelines and rail were crucial, especially when it was necessary to import fuel or transport it to Johannesburg from other sources.
“Those players are key to ensure that infrastructure is operational,” Delomoney said.
CEO Mpumi Mpofu said ACSA, which did not purchase fuel but rather stored it, was “probably the biggest consumer of jet fuel by far” in South Africa. She added that the entity had a duty to inform stakeholders, raising a “red flag” when it anticipated a disruptive situation.
Mpofu said ACSA needed to ensure it could match supply and demand when there was an incident.
“We do want to relook the overall operating model in consultation with stakeholders. The aviation industry is meticulous; we can’t leave anything to chance,” she said.
ACSA is set to implement 204 capital projects worth some R1.5 billion over the next few years following a hiatus in capital spending because of the COVID-19 pandemic. It recorded a 4% gain in passengers during the peak season of December to mid-January, with a “vibrant” domestic market, Mpofu said.
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