Durban: The Transnet National Ports Authority (TNPA) has entered into a 25-year Terminal Operator Agreement with WASAA CEF SOC Ltd for the development and operation of a new liquefied petroleum gas (LPG) terminal at the Port of Durban’s Island View Precinct.
According to South African Government News Agency, the agreement, valued at approximately R1.4 billion, is a significant step in advancing South Africa’s Just Energy Transition programme. This initiative aims to transition the gas sector from fossil fuels to cleaner energy sources, aiding in the decarbonisation of critical sectors.
Speaking at the signing ceremony, TNPA Board Chairperson Tshokolo Nchocho highlighted that the agreement aligns with the developmental mandate to transform South Africa’s ports system, creating opportunities for economic growth. Nchocho described the agreement as a milestone underpinned by strategic direction to modernise the port system, unlock infrastructure investment, and support the evolving energy and logistics landscape.
The TNPA had issued an award letter in July 2024 for a 25-year concession that includes the design, development, financing, construction, operation, maintenance, and transfer of an LPG terminal at the port’s Island View precinct. Nchocho expressed pride in the collective expertise that contributed to this strategic transaction, aligning with national priorities, market demand, and global energy dynamics.
The agreement demonstrates TNPA’s commitment to maintaining Durban’s competitiveness and readiness to attract future investments. The WASAA CEF Joint Venture combines a level 1 black-owned and black-women-led entity with a national energy institution, supporting security of supply and long-term energy development. Nchocho emphasized the importance of such collaborations in driving future concessions and infrastructure development across the port system.
Advocate Michelle Phillips, Transnet Group Chief Executive, stated that the agreement coincides with South Africa’s efforts to implement the Just Energy Transition, guiding the economy’s shift from fossil fuels to cleaner energies. Phillips reiterated TNPA’s goal to rebuild trust, attract investment, and forge partnerships that introduce new capacity and expertise into the logistics system.
eThekwini Mayor Cyril Xaba congratulated TNPA and the WASAA CEF SOC LTD Joint Venture on this significant milestone, highlighting its potential to enhance Durban’s status as a leading energy and logistics hub. The development of the LPG terminal is expected to support the city’s Climate Action Plan by reducing carbon emissions and boosting the local economy through job creation.
The construction of the LOT 100 Terminal in Island View follows WASAA’s acquisition of bp Southern Africa’s liquid bulk fuels import terminal in East London in 2022, solidifying its position as an emerging commodity trader in the sub-Saharan region. The project will diversify the ports of entry for LPG imports into South Africa, currently dominated by Richards Bay, Saldanha Bay, and Port Elizabeth.
Once operational, the Port of Durban terminal will reinforce the port’s status as a major hub for the SADC region and a key transhipment point connecting global markets. The agreement supports Transnet’s Reinvent for Growth strategy, focusing on strategic partnerships and leveraging collaboration between public and private sectors.
The agreement will result in a 50,000 m³ LPG terminal storage and handling capacity, addressing growing demand in KwaZulu-Natal and the Eastern Cape hinterlands. The terminal, expected to be completed by 2027, will dispatch up to 800m³ per hour of heated LPG mix, providing essential supplies to various industrial markets and residential use.
Nokwande Qonde, founder and Managing Director of WASAA, emphasized the significance of women’s participation in the oil and gas sector, advocating for intentional efforts to dismantle exclusionary practices. Qonde noted the global use of LPG for power generation in remote areas and developing regions, underscoring the terminal’s contribution to enhancing Durban’s strategic position as a national logistics hub while supporting clean energy access and carbon emission reduction.
TNPA Acting Chief Executive Mohammed Abdool affirmed that the terminal will benefit the local economy and enable access to clean energy, supporting the energy sector’s carbon emission reduction goals.