- TNPA signs 25 year terminal operator agreement for new liquefied petroleum gas terminal (LPG) facility at Island View.
- R1.4 billion investment supports South Africa just energy transition and gas security.
- Project positions Durban as a regional energy and logistics hub for SADC markets
The Transnet National Ports Authority has signed a 25 year Terminal Operator Agreement with the WASAA CEF SOC Ltd joint venture for the development and operation of a new LPG terminal at the Port of Durban Island View Precinct.
The project represents an estimated investment of R1.4 billion and forms part of South Africa broader just energy transition agenda which seeks to support cleaner energy solutions while decarbonising key industrial and logistics sectors.
Speaking at the signing ceremony at the Port of Durban LPG Terminal TNPA board chairperson Tshokolo Nchocho said the agreement aligns with the authority developmental mandate to transform the national ports system and unlock economic growth through infrastructure investment.
Nchocho said the concession reflects TNPA strategic direction to modernise port infrastructure attract private sector capital and support the evolving energy and logistics landscape. He noted that the development of the first LPG terminal in the Port of Durban responds directly to market demand and global energy trends.
The concession was awarded following a competitive Section 56 process under the National Ports Act. In July twenty twenty four TNPA issued an award letter appointing the WASAA and Central Energy Fund joint venture as preferred bidder for the design development financing construction operation maintenance and eventual transfer of the terminal.
According to TNPA the project demonstrates the value of transparent and well governed concession processes while advancing transformation objectives. The joint venture brings together a level one black owned and black women led company with a national energy institution mandated to support long term energy security.
Transnet group chief executive Michelle Phillips said the agreement comes at a critical time as South Africa accelerates implementation of its just energy transition framework. She said TNPA is focused on rebuilding confidence in port operations attracting investment and forming partnerships that introduce new capacity and expertise into the logistics system.
eThekwini mayor Cyril Xaba welcomed the development saying it would strengthen Durban position as a leading energy and logistics hub while stimulating economic growth and job creation. He added that the project supports the city Climate Action Plan and complements plans to procure new renewable and gas to power generation capacity.
The Island View facility known as LOT one hundred Terminal will provide fifty thousand cubic metres of LPG storage and handling capacity. Once completed the terminal will be able to dispatch up to eight hundred cubic metres per hour of heated LPG mix for industrial and residential markets.
The project is expected to be completed by twenty twenty seven and will diversify South Africa LPG import infrastructure which is currently concentrated at Richards Bay Saldanha Bay and Port Elizabeth. TNPA said the Durban terminal will strengthen the port role as a strategic transhipment hub serving the SADC region and global markets.
WASAA managing director Nokwande Qonde said the agreement marks an important milestone for the company while advancing meaningful participation of women in the oil and gas sector. She highlighted the growing role of LPG in power generation particularly in regions without access to natural gas networks.
TNPA acting chief executive Mohammed Abdool said the terminal will enhance access to cleaner energy support emissions reduction and reinforce the Port of Durban role as a critical national logistics and energy gateway.
The agreement supports Transnet Reinvent for Growth strategy which focuses on leveraging public and private sector collaboration to meet rising demand and deliver long term value for the economy.
Author: Bryan Groenendaal
