Transnet inks 25-year deal to double Cape Town port's diesel storage

Source: Supplied | From left to right: Acting TNPA Chief Executive, Phyllis Difeto and FFS CEO, Andrew Canning

The deal includes an investment of R195.7m over the first three years to refurbish infrastructure, improve operational efficiency, and ensure security of supply to local industries.

Once complete, the terminal will double diesel storage to 29,200m³ and increase bitumen storage from 4,700m³ to 6,900m³ – a 47% total capacity boost.

Strategic importance and consolidation

Speaking at the signing, TNPA acting chief executive, Phyllis Difeto, said: "The partnership with FFS Tank Terminals is crucial for enhancing the port’s competitiveness and operational efficiency. It reinforces the Transnet Reinvent for Growth Strategy and solidifies TNPA’s commitment to continued liquid bulk operations for the region."

FFS Tank Terminals chief executive, Andrew Canning, added: "We are pleased to reach this important milestone in our diversification strategy, extending the FFS Group’s terminal experience to South Africa. We look forward to continuing our strong relationships with the Port, our customers, and stakeholders at large."

The agreement follows the successful Section 56 process of the National Ports Act of 2005. It consolidates two liquid bulk sites into a single operational area, bringing the total number of licensed terminal operators at Cape Town to ten, with eight of them privately owned.