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Ngqura liquid bulk terminal project, South Africa

19th March 2021

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Ngqura liquid bulk terminal project.

Location
Port Elizabeth, in Eastern Cape, South Africa.

Project Owner/s
In March 2021, the Transnet National Ports Authority (TNPA) appointed the Coega Development Corporation (CDC) as an implementation agent for the Ngqura liquid bulk terminal.

The TNPA had initially awarded OTGC – a joint venture between operating partner German multinational Oiltanking, and local partners Grindrod, Calulo Investments and nonprofit organisation Adopt-a-School Foundation – preferred bidder status in 2011 to develop a liquid bulk storage terminal in the port.

However, the OGTC announced in November 2020 that it would not proceed with the development of the project, explaining that it had not been able to achieve a commercially viable business case for the proposed terminal. Further, the evolving market and commercial requirements for a reduced terminal capacity and land could not be accommodated within the parameters of the TNPA procurement process.

Project Description
The project is one of the Section 56 initiatives that the TNPA has identified to encourage private-sector participation as a key element of the company’s Market Demand Strategy (MDS). It will provide storage and marine infrastructure to support the overall petroleum demand projections for South Africa.

Phase 1 will cater for dedicated jetty pipelines, bulk storage of up to 200 000 m3 and final capacity of 790 000 m3, road loading facilities with a vapour recovery unit, state-of-the-art firefighting facilities and site drainage facilities. Provision has been made for the receipt, storage and distribution of liquefied petroleum gas.

The infrastructure will be designed to accommodate vessel sizes of up to 100 000 deadweight tonnage, road-loading facilities, intertank transfer/recirculation facilities, stock accounting in real time, office facilities for customers and an independent laboratory.

Phase 2 includes the landside development forming the link between the tank farm and the berth, which will include equipping Berth B100 to function as a liquid bulk berth. A new access road will also be built from the tank farm to the berth. TNPA will provide all the associated services and build a new port entrance on the eastern side of the Couga river.

The liquid bulk facility at the port includes the loading and offloading facilities at Berth B100, the services and equipment to perform operations at the berth, pipeline connectivity to the facility, as well as the buildings, tanks, structures, paving and surfacing on the 20 ha site designated as the liquid bulk facility.

Yearly throughput is expected to be about 1.25-million cubic metres. Future phases will provide for an additional 550 000 m3 of third-party storage capacity.

Potential Job Creation
An estimated 500 jobs are expected to be created during the construction phase, with a peak of 300 jobs to be created during midconstruction.

The total number of permanent staff required for the terminal is about 50.

Capital Expenditure
Not stated.

Planned Start /End Date
Not stated.

Latest Developments
TNPA has appointed CDC as an implementation agent for a construction programme to ensure that the Ngqura liquid bulk terminal is operational before the Port of Port Elizabeth liquid bulk facility is closed on December 31, 2021.

The appointment will prevent significant delays in the construction of the Ngqura facility, to which it is planned that the Port Elizabeth liquid bulk operation will relocate.

Delays in the readiness of the Ngqura facility would result in the road haulage of the liquid bulk products from port import facilities in East London and Mossel Bay as an alternative supply solution, which is not sustainable, owing to the risk of road infrastructure deterioration, as well as safety, health and environmental risks.

The current location of the Port Elizabeth Tank Farm forms part of Phase 2 of the waterfront development in the Nelson Mandela Bay municipality, which will contribute towards economic transformation through job creation and enhance the tourism profile of the city.

The CDC is currently responsible for the implementation of the planning, design and construction of similar tanks at the Coega Special Economic Zone to create a liquid bulk storage solution for a current Port of Port Elizabeth customer that is affected by the pending closure of the liquid bulk facility.

Given the TNPA’s urgency for the delivery of tank solutions at the Port of Ngqura, the progress made by CDC through this assignment positions it as the best public entity to assist TNPA, the ports authority has stated.

The agreement with the CDC will also result in the TNPA’s receiving technical support, delivery services and systems for the overall delivery of port infrastructure on an assignment-by-assignment basis.

The agreement is for two years and is expected to enable TNPA to rebuild its in-house capacity and ensure that future projects of this nature can be delivered by TNPA as the authority, in accordance with the provisions of the Ports Act.

Key Contracts and Suppliers
Toro Ya Africa Socrasync (port entrance plaza); SA Five Engineering (Berth B100 firefighting system); Phila Environmental Health & Safety (environmental specialist duties); Falcon (site security), JNR Lapere (health and safety agent) and CSV Construction (principal contractor for bulk earthworks).

Subcontractors include Rapid Impact Compaction, MB Fencing, Sanitech, Isidingo Security and Surplan.

Contact Details for Project Information
TNPA GM corporate affairs Lunga Ngcobo, email Lunga.Ngcobo@transnet.net.

 

Edited by Creamer Media Reporter

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