Joint venture Oiltanking Grindrod Calulo (OTGC) will not proceed with developing a liquid bulk storage terminal in the Port of Ngqura near Port Elizabeth in South Africa.
OTGC, a JV between Oiltanking, local partner Grindrod, Calulo Investments and nonprofit organisation Adopt-a-School Foundation, was originally awarded preferred bidder status to develop a terminal in 2011, by the Transnet National Ports Authority (TNPA). However, the JV announced in February 2020 that the project had stalled, as it had not been able to secure sufficient customer commitment for the project.
OTGC says that it has worked to negotiate the build, own, operate and transfer (BOOT) agreement and engineering design, obtain commercial commitments from customers, negotiate funding and acquire regulatory permits.
‘Unfortunately, OTGC has not been able to achieve a commercially viable business case for the proposed terminal. The evolving market and commercial requirements for a reduced terminal capacity and land could not be accommodated in the parameters of the TNPA procurement process. OTGC is, therefore, in the regrettable position that it has had to discontinue the project,’ the company adds.