Name of the Project
Ngqura liquid bulk terminal project.

Location
Port Elizabeth, Eastern Cape, South Africa.

Project Owner/s
The Transnet National Ports Authority (TNPA) concluded an agreement with Oiltanking Grindrod Calulo (OTGC) in 2016 to plan, fund, build, own, maintain and operate a new liquid bulk handling facility at the Port of Ngqura.

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 for up to 200 000 m³ and final capacity of 790 000 m³, road loading 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. The port authority will provide infrastructure for the new OTGC tank farm by equipping Berth B100 to function as a liquid bulk berth. It will also build a new access road 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 liquid bulk facility, and 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 storage capacity available for third-party storage.

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
The planned commissioning of Phase 1 is at the end of 2020.

Phase 2 started construction in November 2018.

Latest Developments
Civil construction is expected to start in July this year.

The launch phase comprises six 11 000 m³ tanks, which will be used during the relocation of the existing petroleum storage and distribution facilities from Port Elizabeth harbour to the Port of Ngqura.

The infrastructure after the launch phase will comprise storage tanks, jetty pipelines and marine loading arms connecting the terminal to a berth in the Port of Ngqura. It will also have a truck-loading gantry and associated fuel terminal infrastructure, such as a vapour recovery unit, firefighting and drainage systems, as well as an office and a workshop.

Following commissioning of the new terminal in November 2020, the tanks currently in use at the Port of Port Elizabeth will be decommissioned and the land redeveloped. This is in line with the city’s plans to clean up the terminal facilities and develop the commercial and tourism sectors.

Detailed design for further development of the 20 ha Ngqura site will be done during construction of the launch phase and the terminal will be developed in phases, with a final total capacity of 790 000 m³.

The terminal will be able to handle any grade of petroleum and, since there is room to expand, it has the potential to provide a storage, handling and blending service for any company needing to import or export bulk liquid or gas products.

An overnight train or truck trip from the major centres of Johannesburg, Cape Town and Durban means that these port facilities are well located to meet the needs of import and export markets.

Truck turnaround times will also be reduced through quicker loading rates, while traffic congestion in the city will also be reduced, as the new terminal is located away from the city centre.

“Owing to the deeper draught available at the Port of Ngqura, which can handle vessels of up to 100 000 dead weight tons, and the substantial land available for development, it is anticipated that there will be demand for bulk liquid petroleum storage at the port beyond the existing requirement, which caters only for local distribution,” Oiltanking Grindrod Calulo MD Nico Smit has said.

This expected development will comprise subsequent development phases. Negotiations are in progress with a number of potential future clients, and will progress as agreements are concluded. Future phases could provide for an additional 550 000 m³ of storage capacity and handling.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
TNPA GM corporate affairs Lunga Ngcobo, email Lunga.Ngcobo@transnet.net.
Port of Port Elizabeth port manager Rajesh Dana, tel +27 41 507 1710 or email Rajesh.Dana@transnet.net.
OTGC, tel 27 31 304 1451, fax +27 31 305 2848 or email grindrod@grindrod.co.za.