Transnet National Ports Authority (TNPA) has signed two major agreements that will facilitate the establishment of South Africa’s first Liquefied Natural Gas (LNG) import terminal and a new liquid bulk facility at the Port of Richards Bay’s South Dunes precinct.
Strengthening Logistics Through Private-Sector Collaboration
These developments align with Transnet’s broader strategy of enhancing freight logistics through strategic private-sector partnerships. The expansion will significantly increase the port’s liquid bulk handling capacity, reinforcing Richards Bay’s role as a key gateway for LNG imports and a vital component of the country’s transport infrastructure.
Supporting Energy Initiatives and Job Growth
Acting TNPA Chief Executive, Phyllis Difeto, emphasized the significance of these projects, stating, *”This achievement reflects our dedication to modernizing South Africa’s logistics sector while addressing the nation’s energy needs.”
The projects will contribute to the economic resilience of the uMhlathuze region, generating employment opportunities in construction, operations, and related industries. These initiatives highlight TNPA’s commitment to economic transformation and workforce development.
A 25-year LNG Terminal Operator Agreement (TOA) has been signed with Zululand Energy Terminals, supporting the government’s Just Transition programme, which aims to introduce at least 6,000 MW of gas-to-power projects to address the country’s energy challenges.
As part of South Africa’s broader energy strategy, the LNG terminal will play a crucial role in enabling gas-to-power projects for both Independent Power Producers and Eskom. TNPA is investing over R7 billion into this initiative, with the terminal expected to handle a minimum of two million tons per annum (mtpa), potentially scaling up to over five mtpa during the concession period.
Advancing Liquid Bulk Handling Capacity
In addition to the LNG terminal, TNPA has secured a R123 million agreement with FFS Tank Terminals for the construction and operation of a liquid bulk terminal. This facility will enhance the port’s ability to manage liquid bulk cargo, particularly bunker fuels essential for maritime logistics.
Scheduled to become commercially operational by February 2025, the terminal will provide efficient bunkering services for bulk carriers, container ships, and tankers. Over the 25-year concession period, the facility will play a key role in ensuring a steady fuel supply.
Economic Impact and Job Creation
The development of these two terminals marks a significant shift in the region’s economic landscape. The LNG terminal alone is expected to generate over 1,000 jobs across construction, operations, and downstream business opportunities for surrounding communities. Meanwhile, the liquid bulk terminal is projected to create around 50 direct and indirect jobs from its inception.
With these strategic investments, TNPA continues to drive economic growth while strengthening South Africa’s logistics and energy infrastructure.
