African Petrochemicals Nov/Dec Edition 14.6 {2017}

TRANSNET AND OTGC MAKE HEADWAY ON NEW NGQURA LIQUID BULK TERMINAL
Progress has been made on the Port of Ngqura’s establishment
as a new petroleum trading hub for Southern Africa, ahead of the
planned decommissioning and rehabilitation of the existing liquid
bulk facilities at the neighbouring Port of Port Elizabeth.
Progress on road infrastructure for the future OTGC tank farm.
A sod-turning ceremony is expected in January 2018 to mark the
start of construction of the new Oiltanking Grindrod Calulo (Pty) Ltd
(OTGC) tank farm and new main access road. Fabrication of the tanks
and optional LPG Bullets is scheduled to start in April 2018.
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TNPA has completed the critical design work associated with the new
tank farm infrastructure and constructed a new access road from the
N2 highway to the 20-hectare site where OTGC will be constructing
the new tank farm. A new port entrance plaza and pipeline servitude
will be constructed that will form the link between the new tank farm
and the port of Ngqura. Tenders would be issued in January 2018 for
the tank farm bulk earth works package and the main access road
construction package to Berth B100.
“These developments signal progress in TNPA’s plans to clean up
terminal facilities and free up land in the Port of Port Elizabeth for
future commercial and tourism development, while enabling Ngqura
to play a vital role in securing South Africa’s future fuel supply,” said
TNPA Chief Executive, Shulami Qalinge.
Earlier this year Transnet National Ports Authority (TNPA) concluded
an agreement with OTGC to plan, fund, construct, own, maintain
and operate the new facility. TNPA is required to provide port
infrastructure for the liquid bulk terminal to commence operations
at the end of 2019. Liquid bulk capacity will be increased from two
million tons per annum for the immediate hinterland to three million
tons per annum once the new liquid bulk terminal is operational.
Qalinge said TNPA is delighted to have a world-class independent liquid
bulk storage provider on board, through a Section 56 process of the
National Ports Act which mandates TNPA as landlord and ports master
planner, to contract with private terminal operators to design, construct,
develop, finance, maintain and operate port terminals or facilities.
Under Transnet’s Market Demand Strategy (MDS) Section 56
concessions across the eight commercial ports are opening up
participation in port activities to businesses owned by historically
disadvantaged individuals. Oiltanking Grindrod Calulo is a majority
South African owned level 1 BBBEE company. The Ngqura facility is
Oiltanking’s first holding in a South African fuel terminal, whereas for
Calulo, being involved in all aspects of the oil supply chain’s, it will
be its first clean products terminal. For Grindrod, the Ngqura liquid
storage facility provides further commodity diversification in fuel
storage and handling and aligns its broader portfolio of infrastructure
based logistics.
Artist impression of the new OTGC Tank Farm.
The new storage facilities and marine infrastructure at Ngqura will
help support South Africa’s overall petroleum demand projections,
which call for significant investments in tank storage infrastructure.
Phase 1 of the liquid bulk facility will provide approximately 155,000
cbm of storage capacity for refined petroleum products and a
maximum of 718,600 cbm by the end of Phase 2 depending on
customer commercial requirements. The new Liquid Bulk Terminal
in Ngqura will replace the tanks currently in use in the Port of Port
Elizabeth, which will be decommissioned and the land redeveloped.
The new modern facility will service the Oil Majors, new entrants
into the South African oil industry as well as international traders - all
supporting the local shipping industry.
It will also create socio-economic benefits and will boost the Eastern
Cape (Nelson Mandela Bay Municipality) economy. Besides generating
local jobs during the construction phase of the project, the facility
will provide permanent positions in the long term. It will promote
skills development in the construction industry, empower local
BBBEE businesses and stimulate additional tax income and increased
revenues for local business.
About Transnet National Ports Authority
Transnet National Ports Authority (TNPA) is one of five operating
divisions of Transnet SOC Ltd. The National Ports Authority is
responsible for the safe, effective and efficient economic functioning
of the national port system, which it manages in a landlord capacity.
It provides port infrastructure and marine services at the eight
commercial seaports in South Africa – Richards Bay, Durban, Saldanha,
Cape Town, Port Elizabeth, East London, Mossel Bay and Ngqura.
It operates within a legislative and regulatory environment and is
governed by the National Ports Act (Act No. 12 of 2005).
For more information visit:
www.transnetnationalportsauthority.net