Transnet National Ports Authority (TNPA) has updated the industry on its process of attracting new terminal operators to the Port of Durban’s Island View Precinct. The Island View Precinct Strategy sets out to facilitate greater participation of historically disadvantaged persons in Terminal Operations and enhance the country’s supply of strategic liquid bulk commodities, while encouraging new entrants into the market. 

Addressing the latest gathering Chief Executive of TNPA, Shulami Qalinge, said: “To date we have made some progress in implementing the strategy. Industry has been requested to provide feedback on the proposed Operating Model and our lease extension approach, and comments have been taken into consideration in our revised planning. We expect to issue an RFQ by February 2019, followed within a few months by an RFP, with April 2020 earmarked as the period when the transition of new Terminal Operators into the Island View Precinct will commence.” 

Shulami said TNPA was aiming to address the slow transformation in the Island View Precinct where lessees have historically enjoyed tenancy in excess of 50 years.

The majority of the precinct’s footprint is occupied by cargo owners who act as Terminal Operators. They are responsible for landing, shipping and/or storage of South Africa’s petroleum, diesel, chemicals, oils, lubricants and aviation fuel.

TNPA is in the process of appointing a liquid bulk expert to advise on this and industry has also been requested to provide feedback on the proposed model.

It has also proposed that expired leases would be extended for 24 months to allow for a smooth transition with the implementation of the IVP strategy. 

Asset ownership as set out in lease agreements will be addressed during the 24-month lease extension period. Extensions will in general be on the same terms and conditions, but rentals will be market related, taking into 2 account the asset valuation outcome. Immovable assets at existing sites will transfer to TNPA at the end of the 24-month extension period. 

All affected leases will be advertised through an open tender process.

TNPA expects to have appointed a Liquid Bulk Expert and Legal Transaction Advisor by the end of October 2018. Condition Assessments are expected to be completed by December 2018. An RFQ is expected to be issued by February 2019 and qualifying bidders to be determined by April 2019. 

Thereafter an RFP will be issued by July 2019 with a briefing session anticipated by August 2019. April 2020 will see the transition of new Terminal Operators into the Island View Precinct. 

For more information visit: www.transnetnationalportsauthority.net

16th October 2016

16th October 2018