South African port operator Transnet has issue a request for proposals for the design, finance, build and operate a liquid-bulk terminal to handle petroleum products at Durban.
The new terminal is needed to cater to the port’s growing volume of oil imports, which are expected to grow to 34.5bn liters in 2044 from 5.2bn this year, according to Bloomberg.
“Based on the current growing demand for liquid fuels and the lack of investment in refining or alternative liquid-fuel manufacturing capacity, South Africa and the region will remain short of products in the foreseeable future. This will result in growing import volumes of final product and components.” Transnet said in the document posted on the country’s National Treasury website.
Potential foreign participants will have to partner with a local Black Empowerment company in order to take part as the tender stipulates that bidders must be at least 51 percent owned by black citizens to qualify to participate in the 25-year concession.
South Africa, the continent’s most industrialized nation, has seen a number of foreign commodities traders launch oil terminal projects at its ports recently
Puma Energy, which is majority-owned by Trafigura, said in February that it was is planning a fuel depot in the port of Richards Bay. The terminal is expected to be operational by the end of September.
Burgan Cape Terminals Ltd., 70% owned by a Vitol Group-led venture VTTI BV, is building a fuel-storage facility in Cape Town that is due to be completed in early 2017.
Fuel traders tell TradeWinds that South Africa has been increasingly sourcing its imported fuel from refineries in the Middle East, which has resulted in a growing trade for medium-range products tankers.