In the latest stride to redefining SA’s logistics network, Transnet has awarded a R17bn concession contract to five private sector partners, including a Bidvest-led consortium, to fund, construct and operate several liquid bulk terminals at the Port of Richards Bay.
The construction of the five terminals for liquid bulk and green fuels terminals is expected to create thousands of jobs, in line with SA’s energy security blueprint.
The deal is the latest in the government’s strategy of enlisting the private sector to revitalise important nodes in SA’s logistics sector, which is undergoing the most significant reforms in a generation. Richards Bay port is one SA’s busiest by volume, handling about 100-million tonnes of cargo annually.
Transnet’s sprawling portfolio spans ports, railways, pipelines and container terminals, making it a critical artery in the SA economy. It has been a huge drag on economic growth after decades of structural and managerial upheaval.
The Transnet National Ports Authority (TNPA) on Thursday said it had appointed five outfits to develop the five terminals, with their management set to be in private hands for at least 25 years. The selected companies are KZN Oils, Linsen Nambi, Protank, Bidvest/Mnambithi Consortium and KNGM Engineering.
Bidvest, worth R80bn on the JSE, is an industrial conglomerate whose interests range from cleaning services to freight management.
By securing long-term investment in critical infrastructure we are ensuring the port remains globally competitive while contributing to SA’s energy security objectives.
— Dennis Mqadi
Richards Bay Port manager
Richards Bay port manager Dennis Mqadi said the development is a key cog in strengthening the Port of Richards Bay’s position as a premier liquid bulk and green fuel hub, while advancing SA’s energy transition.
“By securing long-term investment in critical infrastructure we are ensuring the port remains globally competitive while contributing to SA’s energy security objectives,” Mqadi said.
“The South Dunes Precinct development aligns with TNPA’s commitment to attract private sector investment, modernising terminal infrastructure and ensuring long-term sustainability.
“By enhancing the port’s terminal capacity, the development will enable economic growth, job creation and allow opportunities for new entrants to participate in terminal operations. Negotiations to conclude the terminal operator agreements will now commence accordingly.”
The appointment of private sector players to fund and operate the terminals comes just days after TPNA issued a request for proposals for the appointment of a private sector partner to construct and operate the multipurpose terminal at Port of Durban. The terminal is set to handle fresh produce and compatible break bulk cargo — goods that don’t fit inside a standard dry container.
The private sector participation is part of the government’s broad liberalisation of SA’s logistics sector. Transnet’s strategy has been to pursue private sector partners where the required investments are either unaffordable to Transnet alone or are complementary to Transnet’s strategy.
Strategic position
TNPA occupies a strategic position in SA’s transport and logistics chain, managing the eight commercial seaports — Cape Town, Durban, East London, Mossel Bay, Ngqura, Gqeberha, Richards Bay and Saldanha Bay.
TPNA in February put pen to paper to develop SA’s first liquefied natural gas import terminal as public-private partnership projects take shape amid a push to improve the performance of the country’s logistics sector.
The agreement will see private outfit Zululand Energy Terminals operate the terminal for 25 years, and the project is expected to introduce at least 6,000MW of gas-to-power projects.
Transnet also signed an agreement with FFS Tank Terminals to build and operate a liquid bulk terminal at Richards Bay. Transnet has a pipeline of several public-private partnership projects as it embarks on turning around the performance of the country’s ports and rail network.
The biggest private sector participation across SA’s port network has been delayed by a legal challenge launched by the losing bidder.
The R11bn deal put on the table by Philippines-based International Container Terminal Services to operate Durban container terminal pier 2 is on hold after a challenge by APM Terminals, the port operating company of Danish logistics group AP Moller-Maersk.
The pier 2 project is the cornerstone of SA’s infrastructure, pivotal for economic stability and growth. Pier 2 is Transnet’s biggest container terminal, handling 72% of the Port of Durban’s throughput and 46% of SA’s port traffic.
The government has also taken steps to grant third-party access to SA’s vast rail network — which is need of billions of rand of refurbishment.
Transnet is aiming to raise rail freight volumes to 250-million tonnes by 2030 from 150-million in the year ending March 2024.
Update: May 8 2025
This story contains additional information throughout.
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