Transnet National Ports Authority (TNPA) has signed a 25-year Terminal Operator Agreement (TOA) with the WASAA Central Energy Fund Joint Venture for the development and operation of a new liquefied petroleum gas (LPG) terminal in the Island View Precinct at the Port of Durban.
The R1.4 billion project, awarded following a competitive Section 56 bidding process under the National Ports Act, will deliver a 50 000m³ LPG storage and handling facility expected to be operational by 2027, with capacity to dispatch up to 800m³ per hour of heated LPG mix.
Speaking at the signing ceremony, Transnet Group chief executive Michelle Phillips highlighted the strategic importance of the partnership.
“This new agreement reflects exactly the type of partnership we envision for the future. It brings together an experienced state-owned energy company and an emerging transformation-driven operator, both committed to delivering value at the highest standard,” she said.
Phillips added that the project represented “a strategic investment into the future of energy security, which will dovetail into the diversification of our port services whilst positioning Durban as a major player in the regional energy transition”.
TNPA Board Chairperson TP Nchocho announced the preferred bidder, describing the agreement as a reflection of TNPA’s drive to modernise ports and unlock investment.
“This Terminal Operator Agreement represents a partnership that is aligned with national priorities, market demand and global energy dynamics,” he said, noting that ports worldwide were becoming “multi-energy platforms that support cleaner fuels, improve energy security and create new industrial opportunities”.
He highlighted the transformation credentials of the JV.
“The WASAA CEF Joint Venture brings together a level 1 black-owned and black women-led entity with a national energy institution that carries a mandate to support security of supply and long-term energy development,” Nchocho said.
WASAA CEF JV director Nokwanele Qonde welcomed the partnership.
“WASAA is pleased to have entered into this agreement with TNPA. This partnership will provide us with the ability to assemble the requisite infrastructure network that is necessary to unlock the potential of LPG as a cleaner and viable energy source for residential, commercial and industry applications,” Qonde said.
TNPA acting chief executive Mohammed Abdool said the concession strengthened Durban’s role as a key logistics hub.
“Through this signed 25-year concession agreement, the Port of Durban will enhance its strategic position as a key national logistics hub. The terminal will not only benefit the local economy, but it will also enable access to clean energy and help reduce carbon emissions in the energy sector,” he said.
eThekwini Municipality Mayor Cyril Xaba congratulated TNPA and the WASAA CEF JV, noting the project’s economic and transformation benefits.
“For us as a city, this is a welcome development as it will greatly enhance Durban’s position as a leading energy and logistics hub. It will also boost our economy and create much-needed jobs,” he said.
The project supports South Africa’s Just Energy Transition by expanding cleaner fuel infrastructure while addressing growing LPG demand, particularly in KwaZulu-Natal and the Eastern Cape. It also commits over 51% of opportunities to black-owned, women-led, youth-led and disability-operated enterprises.
The terminal is expected to bolster Durban’s position as an SADC regional hub and key transhipment point, aligning with Transnet’s ‘Reinvent for Growth’ strategy of attracting private-sector collaboration to drive efficiency and sustainability.
