TNPA Awards 25-Year Concession for Cape Town Liquid Bulk Terminal

The project marks a strategic investment in enhancing South Africa’s liquid bulk logistics capacity, with a total projected value of R102 million, covering both capital upgrades and long-term maintenance.

In a significant step toward modernising port infrastructure and diversifying cargo capabilities, the Transnet National Ports Authority (TNPA) has appointed FFS Tank Terminals as the preferred bidder to refurbish and operate a liquid bulk terminal at the Port of Cape Town under a 25-year concession agreement.

The project marks a strategic investment in enhancing South Africa’s liquid bulk logistics capacity, with a total projected value of R102 million, covering both capital upgrades and long-term maintenance.

Revamping a Key Brownfield Facility

The terminal, located within the Liquid Bulk Precinct, spans approximately 6,289 square metres and will be developed as a brownfield project, leveraging existing infrastructure while introducing modern upgrades.

Under the concession model:

• FFS Tank Terminals will finance, construct, operate, and maintain the facility

• The upgraded terminal will be transferred back to TNPA at the end of the concession period

Infrastructure Upgrades to Expand Capacity

The redevelopment will include:

• Upgrading storage tanks to improve safety and structural integrity

• Repurposing the existing import pipeline, currently used for edible oils

• Modernisation of the Nautilus facility

• Enhancements to gantry and receiving systems

These improvements will significantly boost operational efficiency and throughput at the port.

Expanding Cargo Mix: From Edible Oils to Specialty Chemicals

While the terminal currently handles vegetable and edible oils, the upgraded infrastructure will allow it to process additional cargo types, including:

• Caustic soda lye

• Monoethylene glycol

This expansion will:

• Increase cargo diversity

• Strengthen supply chains for industrial and chemical sectors

• Enhance the port’s role in handling specialty imports

Strategic Shift Toward Diversification

TNPA said the project aligns with its broader strategy to:

• Diversify port operations in response to changing market demands

• Improve infrastructure utilisation and commercial viability

• Ensure security of supply for food and industrial sectors

“This modernisation is a vital contribution to economic stability while meeting evolving market needs,” said Dr Dineo Mazibuko, General Manager: Commercial Services at TNPA.

Boost for Local Industry and Skills Development

FFS Tank Terminals, a Level 1 B-BBEE contributor, brings over two decades of experience in liquid bulk operations, including:

• Tank farms and storage facilities

• Manufacturing sites across South Africa

The company has committed to:

• Supporting local suppliers

• Driving skills development initiatives

Regulatory Milestone Achieved

The award follows the successful completion of the Section 56 process under the National Ports Act, 2005, ensuring transparency and compliance in concession allocation.

Strengthening South Africa’s Port Competitiveness

The project is expected to:

• Enhance throughput capacity at the Port of Cape Town

• Improve handling of edible oils and specialty chemicals

• Position the port as a more competitive logistics hub

As global trade patterns evolve, such investments are crucial for maintaining South Africa’s role in regional and international supply chains.