The Transnet National Ports Authority (TNPA) has concluded a 25-year concession agreement with Vopak South Africa Developments, to develop, build, operate and maintain a liquid bulk terminal at the Port of Richards Bay’s South Dunes Precincts.
This agreement was concluded at a signing ceremony held on November 10 at the TNPA’s offices.
The TNPA says the R1-billion investment development of the liquid bulk terminal at the Port of Richards Bay will serve as a catalytic project for the Port of Richards Bay masterplans which form part of the larger KwaZulu-Natal Logistics Hub Programme.
The KwaZulu-Natal programme seeks to position its two ports to focus on key strategic sectors, with the Port of Durban as an international container and premier automotive hub and the Port of Richards Bay as a dry-bulk hub and a strategic player in the renewable energy space and a designated liquified natural gas importation site.
In the Port of Richards Bay section of the logistics hub programme, there are more than 19 projects arising out of the ports master plan, clustered across the three port precincts, namely, the Newark, Bayvue and the South Dunes Precincts. The most activities will be taking place in the South Dunes Precincts.
“The conclusion of this agreement marks a significant milestone for the Port of Richards Bay as it becomes a pioneer in ensuring that the development arising out of the validated plans is led through this investment by Vopak,” says TNPA KwaZulu-Natal Logistics Hub portfolio director Dr Gasa-Toboti.
This breakthrough follows a positive validation process of both KZN Ports master plans by independent consultants, the development of a socio-economic benefit study as well the quantifying of the costs for the various work packages contained in the plans, the TNPA outlines.
“With this signing ceremony, we are excited that we have achieved this very first milestone of being very clear and intentional about the development, but we are also more excited to have partners like Vopak who are aligned to the vision that we would like to see in the Port of Richards Bay of being contributors to not only the regional economy but the national economy as we continue developing both these ports,” says Gasa-Toboti.
Vopak says it strives to be the leading independent storage, distribution, and throughput terminal for customers at strategic areas. Currently, its strategic location is in Durban and in Heidelberg-Lesedi. With this investment, Vopak will look to grow its business and have a representation in the Port of Richards Bay.
“The communities that we operate in are ultimately the main beneficiaries of jobs that will be realised from this strategic investment. This development will benefit the people within these communities as jobs will be created during construction, the running of the plant and the contribution to the fiscus,” says Vopak deputy chairperson Simphiwe Mehlomakhulu.
Following the conclusion of this agreement, Vopak will kickstart the development and construction of the liquid bulk terminal.