Transnet seals R1.4bn LPG terminal deal for Port of Durban
THE Transnet National Ports Authority has concluded a 25-year concession agreement with WASAA CEF SOC Ltd for the development of a new liquefied petroleum gas terminal at Durban’s Island View Precinct, representing a R1.4 billion investment in South Africa’s energy infrastructure.
The concession follows a competitive Section 56 process under the National Ports Act, concluded in July 2024. The partnership brings together a Level 1 black-owned and black women-led company with the Central Energy Fund, addressing both transformation objectives and long-term energy security requirements.
TNPA Board Chairperson Tshokolo Nchocho described the agreement as aligned with the authority’s mandate to modernise port infrastructure while unlocking economic growth through targeted investment. Transnet Group Chief Executive Michelle Phillips positioned the deal within the parastatal’s operational recovery efforts, stating that TNPA is rebuilding stakeholder confidence through strategic partnerships that introduce new capacity and expertise.
The Island View facility, designated as LOT 100 Terminal, will provide 50,000 cubic metres of LPG storage and handling capacity. Once operational in 2027, the terminal will dispatch up to 800 cubic metres per hour of heated LPG for industrial and residential markets across South Africa and the SADC region.
The project diversifies South Africa’s LPG import infrastructure, which currently concentrates operations at Richards Bay, Saldanha Bay, and Port Elizabeth. WASAA Managing Director Nokwande Qonde highlighted the growing role of LPG in power generation, particularly for regions without access to natural gas networks.
eThekwini Mayor Cyril Xaba indicated the development would strengthen Durban’s position as a regional energy and logistics hub while supporting the city’s Climate Action Plan.
