A fuel contract worth R15,5 Billion over five years has been awarded by Transnet SOC Ltd to nine black and women-owned companies for the supply of fuel.

It is the single biggest contract for services or goods for the state-owned company to date.

Following a rigorous, open and public bidding process overseen by a committee of the Board of Directors, Transnet appointed nine companies – Afric Oil, Borutho Gas Supply, Gulfstream Energy, KZN Oils, Mzumbe Oil, NRW Trading and Logistics, Tlhokaina 21, Women Of Africa Fuels and Oils, and YemYem Petroleum – to cover Transnet’s fuel requirements.

Eight of the nine suppliers are 100% black owned. Five of them are more than 80% women owned. Encouragingly, three new entrants have been introduced into the industry.

The nine companies will supply Transnet with homebase fuel in tanks installed in Transnet facilities across the country for vehicles and road equipment, diesel traction for all diesel locomotives for fuelling at Transnet sites nationally and marine diesel for port equipment like dredgers and tug boats.

Malusi Gigaba,Public Enterprises Minister, during the announcement of the contract said, “When the President announced Transnet’s Market Demand Strategy in his state of the nation address in 2012, he said it was intended to revitalise South Africa’s Transport and logistics infrastructure which Transnet has custody of. Further, he challenged us to use programmes like these to create employment, develop skills and pioneer the creation of a new class of industrialists – especially among black people. Transnet has successfully met the challenge.”

The successful bidders, who also attended the ceremony in Johannesburg, were assessed on price, which accounted for half of the scoring, supplier development, B-BBEE and technical ability among others. In addition, Transnet conducted a thorough assessment of the short-listed bidders to ensure that all of them had the required capability and capacity to service Transnet’s operational requirements.

Brian Molefe, Transnet Group Chief Executive, said: “Given the size and the quantum of the contract, and the central role fuel plays in Transnet’s operations, this assessment meant we could comfortably award the contract knowing that security of supply for the company is assured.”

The award contributes significantly to Transnet’s supplier and enterprise development goals, target and ambitions especially in relation to skills development, job creation, technology transfer and rural integrations. In line with this commitment, Transnet is further providing support to the new entrants through mentorship programmes.

Conlcudes Gigaba, “Over the next seven years, including the current year, Transnet is spending R307 billion rand on its infrastructure – building ports and expanding them, buying locomotives, wagon and other rail assets and infrastructure and assets while at the same time spending almost a similar amount on its operational expenditure over the same period. Not even a cent of these billions will be spent without taking into consideration this government’s developmental goals.”