Five inland fuel storage facilities are being offered for long-term lease, operation and maintenance under requests for proposals issued by Transnet Pipelines (TPL).
The opportunities cover the Bethlehem, Kroonstad and Magdala liquid petroleum depots in the Free State, the Ladysmith Fuel Storage Facility in KwaZulu-Natal and the Standerton Petroleum Depot in Mpumalanga, according to a statement issued by TPL on October 5.
Qualified companies, consortiums and joint ventures with experience in the upstream, midstream or downstream petroleum industry have been invited to bid. Proposals close on December 4.
The leasing programme was intended to make greater use of underutilised infrastructure and support fuel storage, distribution and related logistics services in inland markets, TPL said.
Successful bidders would be expected to operate, maintain and develop the facilities, undertake appropriate infrastructure improvements and meet applicable legislative, regulatory, safety and environmental requirements.
The facilities collectively include fuel storage tanks, pumping systems, utilities, firefighting equipment, operational buildings and supporting infrastructure.
They could support the receipt, storage and distribution of petroleum products by road, and where feasible, rail, according to TPL.
Private-sector participation was intended to strengthen energy security, generate new revenue and improve the use of Transnet’s infrastructure assets, TPL chief executive Sibongiseni Khathi said.
“Through strategic partnerships with industry, we aim to repurpose and enhance these facilities in a manner that strengthens energy security, supports national development objectives, generates new revenue streams and reinforces the long-term sustainability and competitiveness of our infrastructure portfolio.”
Access to established storage infrastructure could help operators respond to changing demand in inland markets, TPL head of business development Kresen Naicker said.
“We are looking for capable operators and partners who can bring market expertise, operational capability and a clear focus on customer needs to unlock the potential of these facilities.”
The programme was expected to improve regional fuel supply flexibility and support economic activity, TPL said.
