Transnet National Ports Authority (TNPA) in South Africa has announced plans to open the door for greater participation of tenants in terminal operations in a bid to encourage new entrants into the market.

Addressing leaseholders and representatives of the petrochemical industry, Chief Executive of TNPA, Shulami Walinger, said Transnet’s Island View Precinct (IVP) Strategy aims to facilitate greater participation of historically disadvantaged persons in terminal operations while enhancing the country’s supply of strategic liquid bulk commodities.

“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,” she said.

The underlying principles of the Island View Precinct Strategy are to promote radical socio-economic transformation, job creation and to facilitate investment in ageing infrastructure.

“The strategy will also allow us to allocate capacity to new entrants and to introduce an operating model that ensures equal access. This will enhance the security of supply,” Shulami said.

Currently 14 leases in IVP are on a month-month arrangement. An additional lease expires in 2020 which will potentially free up three sites in the IVP.

All of these affected leases will be advertised through an open tender process, commencing in 2018. The open process will allow for shortlisting of bidders and only shortlisted bidders will be eligible to submit final bids.

Existing operators could re-bid but would need to fulfil the stringent transformation and job creation requirements of Transnet SOC. Potential new entrants will be required to meet certain transformation criteria such as Level 4 BBBEE and TNPA will seek 51% Black ownership in the Terminal Operator company.

Tenure will be aligned with the condition assessment of existing facilities and terminal operator investment plans and will be capped at 25 years. Tenants will be responsible for decommissioning/ rehabilitation/ remediation of IVP lease sites.

This month, TNPA will be engaging existing tenants in the precinct on an individual basis to discuss and finalise terms and conditions of short term lease extensions and asset transfer. TNPA also plans engagement sessions with other interested parties later in the year.

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24th April 2018

24th April 2018