Construction work on Burgan Cape Terminals’ new storage and distribution facility has officially started.
The R650 million independent facility in the port of Cape Town has been designated as a strategic project under the South African Government’s Operation Phakisa and is the first project under this programme to be implemented.
The development is a joint venture between Thebe Investment Corporation, Jicaro and VTTI.
Muziwandile Mseleku, CEO of Burgan Cape Terminals, says: ‘The facility will ensure security of fuel supply by adding greater flexibility and choice to a strained provincial storage market.
‘It will also play an important role in opening up a previously closed market for emerging black owned independent fuel supplier.
‘All of this is good news for the country and for the economy, and most especially for all fuel consumers.’
Burgan Cape Terminals was awarded a 20-year lease by Transnet for the development of the fuel storage facility.
The terminal, which is due to be completed in 18 months, will be a multi-purpose facility and will be used for the storage and distribution of both locally produced and imported fuels.
Burgan has already signed long-term, 10-year contracts with oil companies, who jointly aim to throughput up to 805,000 m3 per year. This includes a contract with 100% black women-owned Gulfstream Energy, which signed a three year throughput agreement to store 120 million litres per annum with Burgan. Shell will also be an anchor tenant.
Global head of strategy and business development of VTTI Rubel Yilmaz adds: ‘The ready uptake of the facility by customers makes it clear that there is growing local demand for refined petroleum products in the region.’