Fuel and lubricants specialist Total South Africa (SA) will inject R140-million into the upgrade and expansion of its two facilities at Durban’s Island View Terminal (IVT) over the next two years.
The group, which recently secured a new 15-year lease with the Transnet National Ports Authority, would spend R50-million on upgrading its IVT-based blend plant, Total SA MD and CEO and Total Southern Africa executive VP Christian des Closières said on Wednesday.
The upgrade would comprise modernising of the filling lines, establishing an on-site laboratory, advancing quality control measures and improving the health and safety features of the facility.
Any additional blended lubricants output after the upgrade would be directed into the Southern African Development Community countries, which Des Closières said was a growth market for lubricant products.
Another R90-million was allocated to the expansion of Total’s oil and fuel storage depot, from its current on-site capacity of 17% of all the fuel marketed by the group, to 26% by completion in 2014.
“As a result of this expansion, there will be better integration into national infrastructure such as Transnet’s new multiproduct pipeline and capacity for future growth will be catered for and enabled,” he said.
The upgrade and expansion projects, which would kick off in the middle of this year when the company would issue requests for tenders, were expected to be completed by the end of next year.
Des Closières pointed out that the facilities would not shut down during construction and that Total customers would continue to be fully serviced with the supply of lubricant stock and fuel storage.
A logistics centre would be built at a separate distribution facility outside Durban to ensure that no product shortages occur.