The Port of Cape Town’s new fuel storage facility operated by black-empowered Burgan Cape Terminals, is now fully operational. The terminal received its pilot consignment of diesel aboard the tanker Marlin Ammolite in the first week of July 2017.

Located on approximately 37 273 square meters of land at the port’s Eastern Mole, the new fuel storage and distribution facility for cleaner fuels is poised to assist with security of fuel supply in the region.

Construction began in late 2015 after Transnet National Ports Authority awarded Burgan Cape Terminals a 24-year lease to develop a new independent fuel storage, distribution and loading facility. Burgan Cape Terminals was identified as the preferred bidder.  It is owned by Netherlands firm VTTI and black economic empowerment companies Thebe Investment Corporation and Jicaro.

Cape Town Port Manager Mpumi Dweba-Kwetana said: “With an estimated investment of R 890 million, the awarding of this contract to a 30% black owned company in partnership with an international operator, speaks strongly to Transnet’s commitment to the Market Demand Strategy (MDS) and the vision of the Operation Phakisa programme of creating capacity ahead of demand and unlocking South Africa’s ocean economy.”

MV Marlin Ammolite - 49999 DWT Built 2016
MV Marlin Ammolite – 49999 DWT Built 2016

Such partnerships between the Port Authority and the private sector emanate from Section 56 of the National Ports Act. This mandates TNPA as landlord and ports master planner, to contract with private terminal operators to design, construct, rehabilitate, develop, finance, maintain and operate port terminals or facilities.

Boasting a total capacity of 121 908m³ from 12 tanks, the terminal’s product portfolio includes diesel, petrol, FAME (fatty acid methyl esters) and ethanol for blending and jet fuel.

Energy is recognised as one of the key commodities in driving economic growth. The South African government has included the Burgan Cape Terminal as a strategic project under Operation Phakisa. The terminal has accelerated transformation of the sector with its inclusion of emerging black-owned, independent fuel suppliers.