The development of the Oiltanking Grindrod Calulo (OTGC) storage terminal project – which is located in the Port of Ngqura and is intended to replace the existing terminal in Port Elizabeth – has been delayed.
OTGC has not been able to secure sufficient customer commitment for the project and has said it is “in the regrettable position that it is unable to execute on the project”. It is liaising with the Transnet National Ports Authority on the way forward.
The preferred bidder status was awarded to OTGC by Transnet National Ports Authority in 2011, to develop the storage terminal in the port in order to service fuel importers in the Nelson Mandela Bay region.
Construction work on the terminal started in 2019, OTGC has said earthworks are now complete.
Since the award of the contract it has been 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.
For more information visit www.grindrod.co.za