Oiltanking Grindrod Calulo (OTGC), which is a joint venture, has decided not to proceed with the development of a liquid bulk storage terminal in the Port of Ngqura.
OTGC was awarded preferred bidder status in 2011 to develop a liquid bulk storage terminal in the port by The Transnet National Ports Authority (TNPA).
The facility was supposed to replace the existing terminal in Port Elizabeth and service fuel importers in the Nelson Mandela Bay region.
An announcement read: “Since the date of award, OTGC has been engaged in negotiating the build, own, operate and transfer agreement, engineering design of the terminal, obtaining commercial commitments from customers, negotiating funding with lenders and obtaining the required regulatory permits for the construction of the project.
“Unfortunately, OTGC has not been able to achieve a commercially viable business case for the proposed terminal. The evolving market and commercial requirements for a reduced terminal capacity and land could not be accommodated in the parameters of the TNPA procurement process.
“OTGC is, therefore, in the regrettable position that it has had to discontinue the project.”
OTGC is a JV between operating partner Oiltanking, local partners Grindrod and Calulo Investments, and non-profit organisation Adopt-a-School Foundation.
For more information visit www.grindrod.co.za
