Zukie Siyotula, Wandile Mseleku and Govert Rietema.
African investment management firm Thebe Investment Corporation has acquired a 15% stake in Burgan Cape Terminals, which was, last year, awarded a 20-year contract by Transnet National Ports Authority (TNPA) to develop and manage fuel storage and distribution facilities at the Cape Town Harbour.
Global storage terminal operator VTTI and black-owned company Jicaro have a 70% and 15% stake respectively in Burgan.
Burgan plans to build a R650-million multipurpose facility for the storage and distribution of both locally produced and imported fuels.
Companies would “rent” space from Burgan for storage of their fuel product.
Burgan had already signed long-term, ten-year contracts with oil companies, which jointly aim to throughput up to 805 000 m3 of fuel a year. They would mainly offtake their products from the Chevron oil refinery.
In case of product shortfall, customers would have the option of importing product, subject to the regulations governing the fuel industry.
Construction of the facility was expected to take between 18 and 22 months, with between 110 and 130 construction jobs to be created. Once operational, the facility would offer 21 permanent job opportunities.
Burgan had commissioned global sustainability consultancy ERM to undertake an environmental-impact assessment on the proposed facility. ERM had submitted its final environmental impact report to the Western Cape Department of Environmental Affairs & Development Planning for approval.
Burgan has also applied to the National Energy Regulator of South Africa for a licence to operate the facility.
“This is a great partnership of skills, expertise and experience and I am extremely excited about the potential that the fuel terminal can unlock, both for Thebe Investment Corporation and for South Africa. This investment allows us to increase our focus on the growth that will come from the energy sector and complements our existing portfolio and strategy perfectly,” said Thebe Capital CE Zukie Siyotula.
“We are very proud to partner with Thebe Investment Corporation and VTTI. Thebe has an exceptional track record as a pioneering black-owned investment company that is known for its active investment philosophy.
“VTTI is one of the world’s top fuel storage infrastructure developers and its experience in and focus on developing storage facilities safely and reliably will be of enormous benefit for this project,” added Burgan CEO Wandile Mseleku.
He noted that the development of the fuel storage facility would allow the country to increase its fuel infrastructure and capacity, while also having a positive effect on the economy, global skills transfer and the transformation of the local energy sector.
“The ready uptake of the facility by customers makes it clear that there is growing local demand for refined petroleum products in the region. We are so pleased to be able to share our extensive global experience with our local partners and look forward to working together,” added VTTI global business development director Govert Rietema.