- South Africa: Parliament’s Portfolio Committees on Trade, Industry and Competition, and Transport have met with black traders to discuss concerns over Transport Minister Barbara Creecy’s directive to renew leases at Transnet’s Island View Precinct (IVP) in Durban.
The meeting followed a previous session held on 14 October, during which Minister Creecy briefed the committees on the Section 79 directive she issued to the Transnet National Ports Authority. The directive requires Transnet to finalise new 25-year Terminal Operator Agreements for the IVP by 31 March 2026. The precinct is a vital hub for South Africa’s fuel imports and storage, supplying the majority of the country’s fuel needs.
In attendance were black-owned petroleum companies, Mineral Resources and Petroleum Minister Gwede Mantashe, the Central Energy Fund (CEF), and the National Energy Regulator of South Africa (NERSA).
Committee Chairperson for Transport, Donald Selamolela, welcomed the engagement, noting that Parliament serves as a platform for stakeholders to raise and resolve their concerns. He said Parliament’s role is to represent all South Africans and ensure fair participation in key sectors of the economy.
Black traders told the committees that they face major barriers in importing liquid fuels, as large foreign-owned oil companies dominate access to port terminals and storage infrastructure. In other countries, they said, such infrastructure is managed by the state or independent operators to ensure fair competition. The traders alleged that oil majors use their control to restrict entry for capable black traders, limiting opportunities to compete under equitable conditions.
While Minister Creecy has described her directive as an effort to secure energy supply and promote transformation through the involvement of the CEF, traders argued that the limited role allocated to the CEF would not effectively support black participation. They contended that once the CEF secures imports for the SAPREF Refinery, it would have little capacity to assist smaller traders, and called for a greater portion of IVP’s storage infrastructure to be reserved for energy security and transformation.
Some stakeholders also questioned the legality of the Section 79 directive, saying the process lacked meaningful consultation with affected public and private entities.
NERSA, which regulates petroleum pipelines and storage facilities, confirmed that it was not formally consulted on the directive. The regulator said it would review the directive to ensure it complies with the Petroleum Products Act and upholds principles of fairness and transparency.
Minister Mantashe clarified that the CEF’s 15% stake in the IVP—expected to increase to 30%—does not represent the full scope of transformation. He said real empowerment must come from the allocation of the remaining 85% of storage capacity currently controlled by oil majors.
The committees emphasised that South Africa’s heavy reliance on a few multinational oil companies poses a serious energy security risk. They stressed the need to build domestic refining capacity and ensure fair access to infrastructure to protect national sovereignty.
They also noted that the Department of Defence, through the South African National Defence Force, requires access to the IVP for strategic fuel reserves and emergency preparedness. Ensuring the Defence Force’s access to these facilities was described as a national security priority.
Committee Chairperson for Trade, Industry and Competition, Mzwandile Masina, said South Africa stands at a critical juncture in transforming its petroleum industry. He warned that failing to include capable black traders in the IVP leases would entrench historical inequalities for another generation.
The committees plan to continue their inquiry into transformation at the IVP in late November, when oil majors will be called to account for their transformation commitments.
Author: Bryan Groenendaal
