State-owned Transnet and the South African Petroleum Industry Association (Sapia) have signed a memorandum of understanding (MoU) to collaborate to strengthen the liquid fuels supply chain and ensure security of supply in South Africa.
Through this MoU, both parties will focus on transforming the liquid fuels industry to ensure that it remains internationally competitive.
This alliance will also look at how the industry can transfer and develop skills and attract new talent.
“Critical sectors of the economy are extremely reliant on liquid fuels. Transnet intends to enable investment into the sector, attract new players and that will, ultimately, create spinoffs for the economy,” says Transnet CE Siyabonga Gama.
Transnet and Sapia will also use the agreement as a platform to collaborate on various programmes of infrastructure expansions, land use and the development of ports, pipelines and rail infrastructure to provide capacity ahead of demand.
In addition, this agreement will assist the two parties to influence the enhancement of fuel supply policy and the regulatory environment for industry growth and development.
“Signing an MoU with Transnet does not only cement a meaningful relationship, but also means both organisations can work together for the benefit of the petroleum and liquid fuels industry and the country as a whole,” Sapia comments.
This alliance will also, among others, focus on providing an appropriate and common platform where constructive engagement on various issues of common interest can be raised; as well as facilitate dispute resolution mechanisms where contentious issues in strategic approaches are identified and can be resolved.
The parties will also assist and support each other, as well as share knowledge on matters relating to best practice principles, while also collectively developing projects and identifying sources of funding for projects and initiatives of mutual interest.