For the first time emerging black fuel marketers will be able to facilitate scalable and reliable access to the fuel market, which historically has been closed to new entrants. This follows the introduction of independent fuel storage and distribution facilities in Cape Town.

This is according to Shane Jegels, CEO of 100% black women owned Gulfstream Energy, an independent fuel marketer which has, in partnership with global commodity traders Tradimex, signed a 3-year throughput agreement to store 120 million litres per annum with Burgan Cape Terminals.

Last month Burgan Cape Terminals announced that it plans to develop new fuel storage and distribution facilities at the Eastern Mole of Cape Town harbour. The company won a tender from Transnet for the development.

Historically, black owned independent wholesalers of fuel have had limited, if any access, to commercial storage for imports and local distribution in South Africa.

Jegels says, “This is immensely significant, not only because access to an independent terminal will open the market for black owned companies to become sustainable, but also because it will foster competition in the Western Cape and ensure better security of fuel supply.”

According to Jegels, sustainability is a key concern¬ for independent fuel companies that rely solely on reselling and distribution contracts with big oil majors. The terminal will enable Gulfstream Energy to become more independent, thereby significantly improving the company’s own supply capability for distribution and sale.

Adds Jegels, “When we created Gulfstream Energy in 2009 we had 4 employees, today we have a team of 26. Greater independence will allow us to secure existing jobs and to employ for our future growth. We estimate that because of our participation in the terminal, we will have to at least double our employee base by 2020. Competition in the form of a terminal that operates outside of the oil majors will foster greater choice, better service and could even lower the cost of fuel to the consumer. South Africa has a developing challenge around the production and sourcing of cleaner fuels which will escalate as automobile manufacturers bring more clean fuel vehicles into the South African market.”

South Africa consumes in the region of 25 billion litres of fuel per annum. Between 20 and 25% of South Africa’s total consumption was imported in 2013.

Burgan Cape Terminals will enable marketers to import, store and distribute cleaner petrol and 50ppm diesel, which are often in short supply as well as provide storage for clean fuel strategic stocks.