A request to design, finance, build and operate a petroleum products storage terminal at Durban Port has been issued by South Africa’s National Treasury.
Bloomberg reports that in a Treasury document, bidders must be at least 51% owned by black citizens to participate in the 25-year concession at the port. The terminal will handle the expected growth of imports as a result of refining capacity shortages.
South Africa plans to build more fuel terminals as demand for storage in Africa grows and it is also aspires to handle cleaner fuels in the future that have lower sulfur content.
Transnet, who submitted the document to the Treasury, said in the proposal: ‘Based on the current growing demand for liquid fuels and the lack of investment in refining or alternative liquid-fuel manufacturing capacity, South Africa and the region will remain short of products for the foreseeable future. This will result in growing import volumes of final product and components.’