Transnet National Ports Authority (TNPA) has signed a Terminal Operator Agreement (TOA) with FFS Tank Terminals to operate and maintain a Liquid Bulk Terminal at the Port of Cape Town.
TNPA said on Tuesday that the agreement would see an investment of R195.7million in the project over the first three years of the 25-year concession period.
“This new concession will lead to the refurbishment of terminal infrastructure and upgrades aimed at improving operational efficiency and ensuring the security of supply to local industries,” the ports authority said.
“Once operational, the terminal will double its current diesel storage capacity by 100%, increasing it to 29 200 cubic metres, enhancing diesel volume throughput at the port, while also boosting bitumen storage facility from 4 700 cubic metres to 6 900 cubic metres – a total storage capacity increase of 47%,” it said.
The deal follows the successful conclusion of the Section 56 process of the National Ports Acts of 2005, during which TNPA appointed FFS Tank Terminals as the preferred bidder in December 2024.
FFS Tank Terminals' appointment forms part of TNPA’s consolidation of terminal operations within the liquid bulk precinct, where two sites have now been merged into a single operational area for improved commercial viability. This now brings the total number of licensed terminal operators at the Port of Cape Town to 10, eight of which are privately owned.
Acting TNPA Chief Executive, Phyllis Difeto, speaking at the signing ceremony in Cape Town, said: “The partnership with FFS Tank Terminals is crucial for enhancing the port’s competitiveness and operational efficiency. It reinforces the Transnet Reinvent for Growth Strategy, which transitions the business from stabilisation to sustained growth for future readiness.
“This agreement solidifies TNPA’s commitment to ensuring continued liquid bulk operations for the region, coupled with growing the port’s capacity and cargo volume throughput.”
FFS Tank Terminals has more than 20 years’ experience in the liquid bulk sector and will play a vital role in facilitating the import of liquid bulk products to ensure security of supply to local industries.
FFS Tank CEO, Andrew Canning, said the deal was an important milestone in the company’s diversification strategy.
He said the deal extended the FFS Group’s technical and terminal experience to a relatively new entrant in the independent liquid bulk storage sector in South Africa, FFS Tank Terminals.
“We are grateful for the constructive and professional approach from TNPA, who have walked through the talk in implementing and facilitating growth and creating employment opportunities in our economy.
“We look forward to continuing our strong relationships with the port, our customers and stakeholders at large.”
