Transnet has sounded out the market for a private sector partner who will finance, construct and operate a liquid bulk terminal to handle edible oils and other compatible cargo at the Port of Cape Town for 25 years, as the government ramps up the reform of network industries.
Ophelia Shabane, Transnet National Ports Authority (TNPA) acting port manager in Cape Town, said the terminal will play a vital role in facilitating the import of liquid bulk, a key commodity for SA’s food essentials.
“This ensures security of supply to local industries, contributing to food security and economic stability. Appointing capable terminal operators is crucial for enhancing port efficiency, stimulating economic growth, job creation and driving modernisation,” Shabane said.
“This concession will improve cargo throughput, optimise port utilisation and revenue generation. Additionally, it will attract private sector investment for terminal infrastructure development, ensuring world-class operational standards,” she said, adding that the private-public partnership reinforces TNPA’s role as a strategic enabler of trade and logistics.
Interested private sector players will now have to slug it out in a competitive bidding process to run the terminal.
According to data firm Statista, revenue in the edible oils market in SA amounts to $285.09m in 2025 and the market is expected to grow annually by 7.74% in the next five years.
SA, while producing some edible oils domestically, is a net importer, particularly of palm, sunflower and soybean oil, with imports from countries such as Malaysia, Indonesia and Spain.
SA’s logistics sector is undergoing the deepest reforms in a generation with the liberalisation of the rail and freight sector at the top of the agenda.
In December, transport minister Barbara Creecy approved the publishing of the Transnet Network Statement, a major step in facilitating open access to the country’s rail network by third-party operators — a move welcomed by the business community and industry players.
The recently established Transnet Rail Infrastructure Manager (Trim) is gearing up for the allocation of the first route slots to private trains after the landmark decision to allow third-party access to the country’s rail network.
This was followed up by the publication of the request for information to interested and affected parties in private sector participation in rail and port freight logistics projects.
The projects that have gone to market include the Northern Cape to Saldanha bulk minerals corridor primarily for iron ore and manganese exports, and the Northern Cape to Nelson Mandela Bay corridor, primarily for manganese exports.
Transnet is aiming to raise rail freight volumes to 250-million tonnes by 2030 from 150-million last year.
The flagship Transnet public-private partnership deal at the Durban Container Terminal Pier 2 is held up in courts after a legal challenge by losing bidder APM Terminals, the port operating company for Danish logistics major AP Moller-Maersk.
The 25-year contract was awarded to International Container Terminal Services which APM accuses Transnet of having favoured over other bidders.
The DCT2 project is the cornerstone of SA’s infrastructure, pivotal for economic stability and growth. DCT2 is Transnet’s biggest container terminal, handling 72% of the Port of Durban’s throughput and 46% of SA’s port traffic.
The reforms in the logistics sector happen alongside those in the energy sector, with the private sector expected to play a more pronounced role.
In a consequential move to unlock SA’s just transition, electricity & energy minister Kgosientsho Ramokgopa, started the process to procure about 1,164km of 400KV transmission lines in the Northern Cape, North West and Gauteng last month.
The newly established National Transmission Company of SA will be the buyer of the infrastructure as the government ramps up its reform of the network industries in an environment where funding from the US is uncertain.
This was followed by a government notice on the draft electricity transmission infrastructure regulations to enable the procurement of independent transmission projects.
SA plans to build 14,000km of new transmission lines via public-private partnerships over the next decade.
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