TNPA Names Preferred Bidders for New Energy Terminals at Richards Bay

The project emerged from a Request for Proposals (RFP) issued on 6 December 2023, under the framework of the Section 56 process of the National Ports Act (No. 12 of 2005).

The Transnet National Ports Authority (TNPA) has announced the selection of five companies as preferred bidders to develop new liquid bulk and green fuel terminals in the South Dunes Precinct of the Port of Richards Bay. This move, involving a total investment of approximately R17 billion, represents a pivotal step in both boosting South Africa’s liquid bulk handling capacity and furthering its national energy transition objectives.

The project emerged from a Request for Proposals (RFP) issued on 6 December 2023, under the framework of the Section 56 process of the National Ports Act (No. 12 of 2005). Section 56 provides for public-private partnerships in the development of port infrastructure, enabling the TNPA to grant terminal operating concessions to private entities.

The South Dunes Precinct development is not only significant in monetary terms but also in its strategic alignment with TNPA’s broader masterplan for KwaZulu-Natal’s ports and Transnet’s overall Segment Strategy. It reinforces South Africa’s ambitions to become a major player in the global green fuels space while meeting domestic demand for critical petrochemical products.

Preferred Bidders and Project Scope

The TNPA has named the following five companies as preferred bidders for the 25-year concession period:

1. KZN Oils (Pty) Ltd.

2. Linsen Nambi (Pty) Ltd.

3. Protank (Pty) Ltd.

4. Bidvest/Mnambithi Consortium

5. KNGM Engineering (Pty) Ltd.

These companies will be responsible for the complete lifecycle of their respective terminals, including funding, design, construction, operation, maintenance, and eventual transfer back to TNPA after the concession period concludes.

The terminals will be designed with state-of-the-art infrastructure to handle a wide spectrum of petrochemical products and alternative fuels essential to South Africa’s economy. These include:

• Diesel

• Petroleum

• Jet fuel

• Marine fuels

• Biofuel

• Hydrogen

• Liquefied Petroleum Gas (LPG)

• Pure butane and propane

• Base oils

• Bitumen

Impacts on Energy and Economic Development

This development marks a transformative moment in Richards Bay’s evolution as a key node for energy logistics. Captain Dennis Mqadi, Port Manager at Richards Bay, highlighted the initiative’s long-term benefits:

“The award of preferred bidders for the South Dunes Precinct development is a major milestone in strengthening the Port of Richards Bay’s position as a premier liquid bulk and green fuel hub. By securing long-term investment in critical infrastructure, we are ensuring the port remains globally competitive, while contributing to South Africa’s energy security objectives.”

In addition to supporting energy security, the project is expected to have a strong developmental impact. The terminals are anticipated to stimulate economic growth, create jobs, and open avenues for small and emerging businesses to participate in high-value terminal operations. This aligns with the TNPA’s commitment to fostering inclusivity and sustainability in its port operations.

Next Steps: Terminal Operator Agreements and Implementation

With the preferred bidders announced, TNPA will now begin formal negotiations to finalize the Terminal Operator Agreements. These agreements will define the detailed operational and regulatory frameworks within which the terminals will be developed and operated.

Construction timelines and environmental compliance processes will follow the conclusion of these agreements, paving the way for the development of one of the most modern and energy-forward terminal infrastructures in Southern Africa.

A Step Forward in Public-Private Port Partnerships

The announcement underscores TNPA’s successful execution of public-private collaboration in infrastructure development. By opening doors to private investment and technical expertise, TNPA is modernizing its terminal offerings, enabling the Port of Richards Bay to compete globally, and positioning itself as a leader in the new energy economy.

The R17 billion investment into Richards Bay’s South Dunes Precinct is not just an infrastructural upgrade—it is a decisive step in South Africa’s transition to a resilient and diversified energy future. It also highlights how government entities like TNPA are leveraging strategic partnerships to unlock economic potential and advance national policy goals.