FFS Tank Terminals receives 25 year concession to run liquid bulk at Cape Town Port

Under the new concession, the company will invest R195m to upgrade and refurbish terminal infrastructure

Newsroom

By 

Newsroom

Published 

December 17, 2024

FFS Tank Terminals receives 25 year concession to run liquid bulk at Cape Town Port

Transnet National Ports Authority (TNPA) has named FFS Tank Terminals as the preferred bidder to refurbish and operate a liquid bulk terminal in the Port of Cape Town’s liquid bulk precinct. The agreement, structured as a 25-year concession, is expected to bolster throughput capacity and improve operational efficiency.

FFS Tank Terminals, a long-standing operator in the port’s liquid bulk precinct, brings over two decades of experience in handling commodities such as heavy fuel oil and edible oils. Under the new concession, the company will invest R195m to upgrade and refurbish terminal infrastructure, a move aimed at enhancing performance while ensuring the terminal’s long-term viability.

Ophelia Shabane, acting port manager, was upbeat about the deal. “The selection of FFS reinforces TNPA’s commitment to maintaining liquid bulk operations and ensuring security of supply, while growing capacity and stimulating economic activity. This agreement will support economic development by preserving jobs, fostering employment, and promoting local supplier and skills development.”

The concession forms part of TNPA’s broader plan to revitalise the liquid bulk precinct through private-sector partnerships. While the precinct’s terminals remain operational, more facilities are slated to enter the concession process in the coming year. TNPA has emphasised its adherence to the transparency requirements of the National Ports Act.

The tender mandates the successful bidder to acquire, refurbish, operate, maintain, and eventually transfer the liquid bulk terminal. The facility is a brownfield site, spanning 18,722 square metres and connected to the Eastern Mole and Tanker Basin berths, which serve as common-user berths for liquid bulk commodities. While Eastern Mole 1, once used for bunkering, is no longer operational, Eastern Mole 2, Tanker Basin 1, and Tanker Basin 2 remain in use by operators such as Astron Energy, Burgan Cape Terminals, and FFS Tank Terminals.

TNPA views the deal as integral to its mandate of facilitating port services while expanding infrastructure, diversifying revenue, and fostering job creation. “The liquid bulk precinct plays a critical role in enabling the efficient movement of liquefied cargo across South Africa and beyond, ensuring security of supply and facilitating international trade,” said Shabane.

As TNPA pursues phased concessions, partnerships like this one reflect South Africa’s broader effort to blend public-sector oversight with private-sector expertise, balancing economic growth and operational efficiency in one of the country’s key maritime hubs.

more articles by this author