The Transnet National Ports Authority (TNPA) says work to transform the Port of Ngqura into a new petroleum trading hub for Southern Africa, is progressing steadily.

According to TNPA, construction on the new Oiltanking Grindrod Calulo (OTGC) tank farm and new main access road is expected to start in January 2018, while fabrication of the tanks and optional LPG Bullets is scheduled to start in April 2018.

The critical design work associated with the new tank farm infrastructure has been completed and the ports authority has constructed a new access road from the N2 highway to the 20-hectare site where OTGC will be constructing the new tank farm.

Transnet says a new port entrance plaza and pipeline servitude will also be constructed that will form the link between the new tank farm and the port of Ngqura. Tenders would be issued in January 2018 for the tank farm bulk earth works package and the main access road construction package to Berth B100.

Cleaning up port facilities

“These developments signal progress in TNPA’s plans to clean up terminal facilities and free up land in the Port of Port Elizabeth for future commercial and tourism development, while enabling Ngqura to play a vital role in securing South Africa’s future fuel supply,” says TNPA Chief Executive, Shulami Qalinge.

Earlier this year TNPA concluded an agreement with OTGC to plan, fund, construct, own, maintain and operate the new facility.

The ports authority is required to provide port infrastructure for the liquid bulk terminal to commence operations at the end of 2019. Liquid bulk capacity will be increased from two million tons per annum for the immediate hinterland to three million tons per annum once the new liquid bulk terminal is operational.

Significant investments in tank storage infrastructure

Transnet says the new storage facilities and marine infrastructure at Ngqura will help support South Africa’s overall petroleum demand projections, which call for significant investments in tank storage infrastructure.

Phase 1 of the liquid bulk facility will provide approximately 155 000 cbm of storage capacity for refined petroleum products and a maximum of 718 600 cbm by the end of Phase 2 depending on customer commercial requirements.

The new terminal will replace the tanks currently in use in the Port of Port Elizabeth, which will be decommissioned and the land redeveloped. According to TNPA the new modern facility will service the oil majors, new entrants into the South African oil industry as well as international traders – all supporting the local shipping industry.