Durban: The Transnet National Port Authority (TNPA) is set to renew all leases for existing tenants at the Island View petrochemical hub located at the Port of Durban. This move impacts companies such as Bidvest Tank Terminal, H and R South Africa, Chemoleo, UNICO TEC, Astron Energy, VOPAK Terminal Durban, Engen, Total Energies, the South African Petroleum Refineries, and Sasol.
According to South African Government News Agency, Transport Minister Barbara Creecy has mandated this renewal under Section 79 of the National Ports Act No. 12 of 2005. Minister Creecy highlighted the importance of this decision, stating that renewing leases at the Port of Durban Island View would ensure fuel supply security for South Africa, provide certainty to tenants, and promote long-term infrastructure investment. She emphasized the importance of introducing new participants into the industry to broaden participation and ensure that all South Africans have a stake in port operations.
The lease renewals are conditional on the execution of new Terminal Operator Agreements (TOA) with the tenants. These agreements stipulate several conditions, including the transfer of terminal infrastructure ownership to the Authority after a 25-year concession period. Tenants are also required to make necessary capital investments to maintain efficiency, reliability, and safety, and they must implement training and incubation programs to empower historically disadvantaged individuals.
The agreements aim to achieve two main policy objectives: transforming a sector historically dominated by established players and ensuring ongoing fuel security through regulated third-party access to the Island View infrastructure. The TNPA will provide fixed access to the Central Energy Fund (CEF) at the precinct, initially allocating 15% capacity, which can increase to 30% over time, to facilitate emerging Black players’ entry into the market.
The CEF has also been granted permission to construct and operate a new Single Buoy Mooring within the Durban Port, enhancing access for the new South African National Petroleum Company (SANPC). The Authority and entities involved must create a framework for third-party storage capacity access, ensuring compliance with National Energy Regulator of South Africa regulations.
Additionally, a Section 79 Directive has been issued to TNPA to renew a 25-year lease for Astron Energy at the Port of Cape Town. This lease covers loading arms for import and export through Astron Energy’s Joint Bunkering Services. The Astron Energy Refinery, being one of only two operational crude oil refineries in South Africa, plays a critical role in national energy security. Between 2019 and 2024, Astron Energy has invested over R463 million in its port operations in Cape Town and has maintained a Broad-Based Black Economic Empowerment Level 1 status.