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Transnet makes headway on new Ngqura Liquid Bulk Terminal

Progress has been made on the Port of Ngqura’s establishment as a new petroleum trading hub for Southern Africa, ahead of the planned decommissioning and rehabilitation of the existing liquid bulk facilities at the neighbouring Port of Port Elizabeth.

A sod-turning ceremony is expected in January 2018 to mark the start of construction of the new Oiltanking Grindrod Calulo (Pty) Ltd (OTGC) tank farm and new main access road.

Fabrication of the tanks and optional LPG Bullets is scheduled to start in April 2018.

According to Transnet National Ports Authority (TNPA), the critical design work associated with the new tank farm infrastructure, and construction of a new access road from the N2 highway to the 20-hectare site where OTGC will be constructing the new tank farm has been completed.

A new port entrance plaza and pipeline servitude will be constructed that will form the link between the new tank farm and the port of Ngqura.

“These developments signal progress in TNPA’s plans to clean up terminal facilities and free up land in the Port of Port Elizabeth for future commercial and tourism development, while enabling Ngqura to play a vital role in securing South Africa’s future fuel supply,” said TNPA Chief Executive, Shulami Qalinge.

Qalinge said the new storage facilities and marine infrastructure at Ngqura will help support South Africa’s overall petroleum demand projections, which call for significant investments in tank storage infrastructure.

Liquid bulk capacity will be increased from two million tons per annum for the immediate hinterland to three million tons per annum once the new liquid bulk terminal is operational.

Phase 1 of the liquid bulk facility will provide approximately 155 000 cbm of storage capacity for refined petroleum products and a maximum of 718 600 cbm by the end of Phase 2 depending on customer commercial requirements.

Qalinge said TNPA was delighted to have a world-class independent liquid bulk storage provider on board.

She noted that through a Section 56 process of the National Ports Act, TNPA is mandated as landlord and ports master planner, to contract with private terminal operators to design, construct, develop, finance, maintain and operate port terminals or facilities.

“The new Liquid Bulk Terminal in Ngqura will replace the tanks currently in use in the Port of Port Elizabeth, which will be decommissioned and the land redeveloped. 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,” she said.

“It will also 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 expects to provide permanent positions in the long term. It aims to promote skills development in the construction industry, empower local BBBEE businesses and stimulate additional tax income and increased revenues for local business.

Tenders will be issued in January 2018 for the tank farm bulk earth works package and the main access road construction package to Berth B100.

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