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New Ngqura liquid bulk facility to free up port land for future expansion

The city of Port Elizabeth welcomed delegates to a ceremonial signing yesterday, to mark an agreement between Transnet National Ports Authority (TNPA) and Oiltanking Grindrod Calulo Holdings.

The holdings company was appointed to plan, fund, construct, maintain and operate a new liquid bulk handling facility at the Port of Ngqura.

Richard Vallihu, Chief Executive of TNPA, said, “This milestone signals progress in our plans to free up port land for future expansion at the Port of Port Elizabeth, and will in the near future lead to our decommissioning of the Port Elizabeth tank farm and rehabilitation of the site once the Ngqura facility becomes operational.”

“The concept engineering design as well as the topographical and geotechnical survey has been completed and construction is due to commence in the 4th quarter of 2017, with commissioning planned for the 3rd quarter of 2019,” read a statement issued by Oiltanking GC.

According to the company, Phase 1 of the liquid bulk facility will provide approximately 150 000 cubic metres of storage capacity for refined petroleum products and will replace the tanks currently in use in the Port of Port Elizabeth, which will be decommissioned and the land redeveloped.

This is in line with Port Elizabeth’s plans to clean up the terminal facilities and develop the commercial and tourism sectors.

“The Ngqura facility is a unique opportunity for the joint venture partners as well as for the region, said the company. “For Oiltanking, it will be its first holding in a South African fuel terminal, whereas for Calulo, being involved in all aspects of the oil supply chain’s, it will be its first clean products terminal.

“For Grindrod, the Ngqura liquid storage facility will provide diversification into fuel storage and handling and aligns with its coastal tanker shipping through Unicorn Tankers.”

The liquid bulk facility will create socio-economic benefits and will boost the Eastern Cape (Nelson Mandela Bay Municipality) economy.

Besides generating local jobs during the construction phase of the project, the facility will provide permanent positions in the long term, promote skills development in the construction industry, as well as empower the local BBBEE businesses.

The new modern facility will service the Oil Majors – new entrants into the South African oil industry as well as international traders – all supporting the local shipping industry.

The region will benefit from additional tax income and the local businesses from increased revenues.

The Build, Operate and Transfer (BOOT) agreement was concluded in December 2016.

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