- South Africa’s state owned Transnet National Ports Authority (TNPA) has named five companies as preferred bidders for the development of liquid bulk and green fuel terminals in the South Dunes Precinct of the Port of Richards Bay for a 25-year concession period.
- The new terminal complex is expected to facilitate imported gas supply for Eskom’s planned 3000MW gas to power plant in Richards Bay. Read more
The development, worth approximately R17 billion, is an integral part of expanding the port’s liquid bulk handling capacity, while advancing South Africa’s energy transition. Following a Request for Proposals (RFP) issued on 6 December 2023 under the Section 56 process of the National Ports Act (No. 12 of 2005), TNPA has awarded preferred bidder status to five companies for the development of five liquid bulk terminals.
The successful preferred bidders are:
- KZN Oils (Pty) Ltd.
- Linsen Nambi (Pty) Ltd.
- Protank (Pty) Ltd.
- Bidvest/Mnambithi Consortium.
- KNGM Engineering (Pty) Ltd.
The project will entail funding, design, development, construction, operation, maintenance and transfer of the liquid bulk terminals for a 25-year concession period.
The sites will be designed to handle various petrochemical products that are critical for the economy of the country, including but not limited to diesel, petroleum, jet fuel, marine fuels, biofuel, hydrogen, liquefied petroleum gas (LPG), pure butane, pure propane, base oils and bitumen.
This forms part of TNPA’s masterplan for its KwaZulu-Natal ports, aligned with the broader Transnet Segment Strategy.
“The award of preferred bidders for the South Dunes Precinct development is a major milestone in strengthening the Port of Richards Bay’s position as a premier liquid bulk and green fuel hub. 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,” said Richards Bay Port Manager, Captain Dennis Mqadi, emphasising the significance of the milestone.
The South Dunes Precinct development aligns with TNPA’s commitment to attract private sector investment, modernising terminal infrastructure and ensuring long-term sustainability. By enhancing the port’s terminal capacity, the development will enable economic growth, job creation and allow opportunities for new entrants to participate in terminal operations.
Transnet confirms that negotiations to conclude the Terminal Operator Agreements will commence accordingly.
Author: Bryan Groenendaal
