The development of Oiltanking Grindrod Calulo’s bulk liquid storage terminal in the Port of Ngqura has stalled.
OTGC was awarded the preferred bidder status in 2011 by Transnet National Ports Authority to develop the storage terminal in the port to service fuel importers in the Nelson Mandela Bay region. The facility is intended to replace the existing terminal in Port Elizabeth.
Since the award of the contract, OTGC has been negotiating the build, own, operate and transfer agreement, engineering design of the terminal, obtaining commercial commitments from customers, negotiating funding with lenders, and obtaining the required regulatory permits for the construction of the project. Construction work on the terminal started in 2019, and earthworks are now complete.
However, in a confirmation to Tank Storage Magazine, OTGC says it has not been able to secure sufficient customer commitment for the project and says it is in the regrettable position that it is unable to execute on the project. It is liaising with the Transnet National Ports Authority on the way forward.