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.
With the project valuing approximately R17 billion, this venture marks a substantial expansion of the port’s liquid bulk handling capacity, while also propelling the nation towards a more sustainable energy future.
Following a Request for Proposals (RFP) issued on 6 December 2023, TNPA on Thursday said it has awarded preferred bidder status to KZN Oils, Linsen Nambi, Protank, Bidvest/Mnambithi Consortium, and KNGM Engineering.
This ambitious project encompasses funding, design, development, construction, operation, maintenance, and eventual transfer of liquid bulk terminals over a 25-year concession period.
Terminal designs will enable the handling of a range of essential petrochemical products, including diesel, petroleum, jet fuel, marine fuels, biofuel, hydrogen, liquefied petroleum gas (LPG), pure butane, pure propane, base oils, and bitumen.
The initiative forms part of TNPA’s comprehensive masterplan for KwaZulu-Natal ports, which is in line with the broader Transnet Segment Strategy.
Captain Dennis Mqadi, Richards Bay port manager, expressed his optimism about the port’s future.
“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,” Mqadi said.
“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.”
The South Dunes Precinct development is not just about infrastructure; it signifies TNPA’s commitment to attracting private-sector investment and modernising terminal facilities to ensure long-term sustainability.
By increasing the port’s terminal capacity, this development hopes to foster economic growth and job creation, while also opening the door for new entrants to engage in terminal operations.
With negotiations to conclude the Terminal Operator Agreements set to begin shortly, stakeholders are keenly observing what this transformative project will mean for South Africa’s economic landscape and its ambitious energy transition goals.
BUSINESS REPORT
