State-owned Transnet National Ports Authority (TNPA) has signed a terminal operator agreement with FFS Tank Terminals to operate and maintain a liquid bulk terminal at the Port of Cape Town for a 25-year concession period.

With an investment of R195.7-million over the first three years, the concession will lead to the refurbishment of terminal infrastructure and upgrades to improve operational efficiency and ensure security of supply to local industries.

Once operational, the terminal will double its current diesel storage capacity by 100% to 29 200 m³, enhancing diesel volume throughput at the port, while also boosting bitumen storage from 4 700 m³ to 6 900 m³, a total storage capacity increase of 47%.

The agreement with FFS Tank terminals, which is a terminal operator in the liquid bulk sector with more than 20 years of experience, will play a vital role in facilitating the import of liquid bulk products to ensure security of supply to local industries, contributing to the region’s economic stability.

FFS Tank Terminals' appointment forms part of TNPA’s consolidation of terminal operations within the liquid bulk precinct, where two sites have been merged into a single operational area for improved commercial viability.

Further, the appointment brings the total number of licensed terminal operators at the Port of Cape Town to ten, eight of which are privately owned, and thereby demonstrating strong private sector participation in port activities.

TNPA appointed FFS Tank Terminals as the preferred bidder in December 2024, which demonstrates the effectiveness of the National Ports Act in promoting the country's national, strategic, and economic interests, TNPA says.

“The partnership with FFS Tank Terminals is crucial for enhancing the port’s competitiveness and operational efficiency. It reinforces the Transnet Reinvent for Growth Strategy, which transitions the business from stabilisation to sustained growth for future readiness,” says TNPA acting CE Phyllis Difeto.

“This agreement solidifies TNPA’s commitment to ensuring continued liquid bulk operations for the region, coupled with growing the port’s capacity and cargo volume throughput,” she says.

“This is an important milestone in our diversification strategy that extends the FFS Group’s technical and terminal experience to a relatively new entrant in the independent liquid bulk storage sector in South Africa, namely FFS Tank Terminals,” says FFS Tank Terminals CEO Andrew Canning.

“TNPA took a constructive and professional approach to implement and facilitate growth and create employment opportunities in our economy,” he says.