Cape Town Port expands liquid bulk capacity in R195.7 million deal

The Transnet National Ports Authority (TNPA) has officially signed a 25-year Terminal Operator Agreement (TOA) with FFS Tank Terminals which will inject R195.7 million into the terminal.

This agreement grants FFS Tank Terminals the right to operate and maintain a Liquid Bulk Terminal at the Port of Cape Town, representing a significant investment and a boost for the region's economy.

Over the first three years, FFS Tank Terminals will inject R195.7 million into the terminal. This substantial investment will be used to refurbish existing infrastructure and implement upgrades aimed at enhancing operational efficiency and ensuring a reliable supply for local industries.

Once operational, the terminal's diesel storage capacity will double by 100% to 29,200m³, significantly increasing diesel volume throughput at the port. Additionally, bitumen storage capacity will increase by 47%, from 4,700m³ to 6,900m³.

TNPA said the deal follows the successful conclusion of the Section 56 process of the National Ports Acts of 2005, during which TNPA appointed FFS Tank Terminals as the preferred bidder in December 2024.

It added that this demonstrates the effectiveness of the National Ports Act of 2005 in promoting the country's national, strategic, and economic interests. 

“FFS Tank Terminals' appointment forms part of TNPA’s consolidation of terminal operations within the liquid bulk precinct, where two sites have now been merged into a single operational area for improved commercial viability,” explained TNPA.

“This now brings the total number of licensed terminal operators at the Port of Cape Town to 10, eight of which are privately owned, demonstrating strong private sector participation in port activities.”

Speaking at the signing ceremony in Cape Town, Phyllis Difeto, Acting TNPA Chief Executive, said: “The partnership with FFS Tank Terminals is crucial for enhancing the port’s competitiveness and operational efficiency. It reinforces the Transnet Reinvent for Growth Strategy, which transitions the business from stabilisation to sustained growth for future readiness. 

This agreement solidifies TNPA’s commitment to ensuring continued liquid bulk operations for the region, coupled with growing the port’s capacity and cargo volume throughput.”

It added that the agreement with FFS Tank terminals, an experienced terminal operator in the liquid bulk sector with over 20 years of experience, will play a vital role in facilitating the import of liquid bulk products to ensure security of supply to local industries, contributing to the region’s economic stability.

Andrew Canning, FFS Tank Terminals Chief Executive Officer added: “We are pleased to reach this important milestone in our diversification strategy, which extends the FFS Group’s technical and terminal experience to a relatively new entrant in the independent liquid bulk storage sector in South Africa, FFS Tank Terminals.

We are grateful for the constructive and professional approach from TNPA, who have walked through the talk in implementing and facilitating growth and creating employment opportunities in our economy. We look forward to continuing our strong relationships with the Port, our customers and stakeholders at large.”

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