Transnet National Ports Authority (TNPA) on Friday announced that FFS Tank Terminals had been appointed as the preferred bidder to refurbish and operate a liquid bulk terminal for a 25-year concession period at the Port of Cape Town.
Image: Supplied by TNPA
Transnet National Ports Authority (TNPA) on Friday announced that FFS Tank Terminals had been appointed as the preferred bidder to refurbish and operate a liquid bulk terminal for a 25-year concession period at the Port of Cape Town.
TNPA said that the terminal, specialising in edible oils and compatible cargo, is a brownfield development covering approximately 6,289 m² within the Liquid Bulk Precinct, boasting a projected investment value of R102 million - including capital and maintenance costs.
“FFS Tank Terminals will finance, construct, operate and maintain the liquid bulk terminal, and transfer it back to TNPA at the end of the concession period. The work includes upgrading storage tanks to enhance structural integrity and repurposing the existing import pipeline, which is currently used for vegetable and edible oils.”
TNPA added that the investment will further focus on repurposing the Nautilus facility as well as upgrading gantry and receiving systems.
“Once upgraded, the import pipeline will suitably handle additional new cargo types such as caustic soda lye and monoethylene glycol at the terminal. These improvements are expected to enhance the throughput of vegetable oils and specialty chemicals through the port.”
Dr Dineo Mazibuko, TNPA general manager for commercial services, said that the modernisation of this liquid bulk terminal is part of their strategic shift towards diversification in response to evolving market demands.
“It ensures the security of supply of industrial and food service supplies whilst meeting new market demands for the importation of specialty chemicals. This is a vital contribution to economic stability whilst optimising infrastructure utilisation and commercial viability of our seaports.”
TNPA said that this milestone follows the successful conclusion of the Section 56 process under the National Ports Act of 2005.
“FFS Tank Terminals is a Level 1 B-BBEE contributor, bringing over two decades of experience in liquid bulk terminal operations. The company operates multiple manufacturing sites, storage facilities, and tank farms across the country and is committed to ongoing investment in local suppliers and skills development initiatives.”
Ulrich Joubert, an independent economist, said that the port authorities are aware of new developments in international trade, and that they then are focused on providing the services for new developments, and here, liquid bulk.
“I would say that opens up opportunities for, first of all, exporters, but also for importers. So it opens up business opportunities for these South African importers and exporters, but also, of course, for the port authorities.”
Joubert added that it opens up business opportunities to provide the service and to get some extra revenue and some income from these additional services.
“I'm glad that the ports are aware of new trends in international trade and that they are prepared to provide their services. The second thing that is important to me about this, this announcement, is that they don't want to provide it themselves, but they get a private company to provide the service," Joubert said.
"One assumes that this company is efficient at providing these services, but that they know the trade and that they could then provide a good and efficient service. First of all, to the ports, but then also to those importers and exporters.
Joubert concluded that it remains good news that TNPA is including the private sector to invest in the Ports as they can't do it alone.
BUSINESS REPORT