South Africa’s ports authority TNPA has finalised all 11 terminal operator agreements with fuel and chemical handlers at the Island View complex, the state-owned company said on Monday.
Transnet National Ports Authority was instructed by Transport Minister Barbara Creecy last year to sign the 25-year agreements after she invoked special rules to help energy security.
However, the minister’s decision is being challenged in court by Black-owned Capricorn Petrochemicals, which is seeking to have the decision reviewed and set aside.
READ ALSO: South Africa Draws Czech Republic To Keep Hopes Alive
Capricorn claims in court papers that the decision favours existing operators, such as BP (BP.L), and commodity trader Vitol, at the expense of Black-owned companies.
Approximately three-quarters of South Africa’s fuel imports flow through Island View Precinct, which is part of Durban port on the east coast and acts as the country’s main storage and supply hub.
In response to questions, TNPA said it had signed terminal operator deals across the liquid bulk sector, including petroleum and chemical commodity handlers.
It also concluded a Third-Party Access Framework with all operators, establishing a mechanism through which new market entrants will access terminal capacity.
Creecy said earlier this month that TNPA will be issuing “rationalised sites” to the market via a special purpose vehicle.
“We are finalising the mechanism for participation … and hope to make public the process in Quarter 2 of this financial year,” Creecy told a fuels industry conference on June 11.
Reuters/Shakirat Sadiq
