Transport Minister Barbara Creecy has instructed the Transnet National Ports Authority (TNPA) to renew all leases of existing tenants in the Island View precinct at the Port of Durban.
Creecy issued the directive in terms of Section 79 of the National Ports Act of 2005. It will effectively lead to the renewal of the leases held by Bidvest Tank Terminals, H&R Africa, Chemoleo, Unico TEC, Astron Energy, Vopak Terminal Durban, Engen, TotalEnergies, SAPREF and Sasol.
The lease renewal gives the firms the right to operate liquid bulk terminals and manufacturing sites in the Island View precinct for 25 years.
Creecy also instructed the TNPA to give the CEF access to the terminal in an attempt to balance transformation and energy security. This includes existing marine and landside infrastructure for landing, exporting and evacuating cargo within the port limits.
The CEF is initially allocated 15% capacity, which can be increased up to 30% over time. The initial allocation will be reviewed periodically as significant milestones are reached and utilisation of existing allocated capacity reaches 90%. It will also act as a third-party access point for emerging black players previously limited by lack of access to the terminal.
Creecy also granted the CEF the right to build and operate a new single buoy mooring in the Port of Durban to entrench access for the new South African National Petroleum Company.
“This initiative attempts to achieve two important policy objectives: On the one hand, it ensures transformation of the sector dominated for decades by well-established players. On the other hand, the decision aims to ensure ongoing fuel security by ensuring third-party access is managed in a well-regulated and incremental manner that ensures consistent usage of the Island View infrastructure,” Creecy said.
The directive is conditional on TNPA concluding new terminal operator agreements with the firms before March 31 next year.
The new agreements include the following conditions for entities:
- Transfer terminal infrastructure ownership to the TNPA at the end of the 25-year concession period to ensure it – including, but not limited to, bulk fuel storage tanks, pipelines and related infrastructure – is maintained in accordance with international best practices
- Invest capital to ensure the terminals are fully equipped and operate at all times in a highly efficient, reliable and safe manner
- Establish and implement training and incubation programmes aimed at transferring technical skills to empower historically disadvantaged people to participate in the operation of port facilities
- Adopt a comprehensive transformation strategy to increase B-BBEE levels, black ownership and participation in port operations, within a mutually agreed period with the authority, compliant with the relevant legislation
“Renewing leases at the Port of Durban Island View will ensure fuel supply security for South Africa, provide certainty to tenants and encourage long-term investment in the infrastructure. Bringing new players into the industry will not only expand participation but also ensure that all South Africans have a stake in the port operations,” Creecy said.
In another recent decision, the Minister issued a Section 79 directive to the TNPA to renew a 25-year lease for Astron Energy.
National energy security is closely tied to the reliability of supply provided by Astron Energy’s fully integrated operation of its refinery and associated Port of Cape Town facilities.
Astron Energy Refinery is one of only two operational crude oil refineries in the country capable of refining strategic crude reserves. Between 2019 and 2024, Astron Energy invested over R463 million in its Cape Town port operations.
