Transport Minister Barbara Creecy has issued a directive instructing Transnet National Ports Authority (TNPA) to renew the leases of existing liquid-bulk terminal operators in the Island View precinct at the Port of Durban for a further 25 years in a bid to ensure ongoing fuel security.

Uncertainty over the lease agreements has proved to be a major obstacle to investment by the terminal operators in the precinct, with many operating on month-to-month leases after their long-term agreements expired years ago.

The directive was issued in terms of Section 79 of the National Ports Act, and renews the leases of Bidvest Tank Terminal, H&R South Africa, Chemoleo, Unico TEC, Astron Energy, Vopak Terminal Durban, Engen, Total Energies, Sapref and Sasol.

The directive is conditional upon TNPA concluding new terminal operator agreements (TOAs) with the entities by March 31, 2026.

Besides skills transfer and broad-based black economic empowerment commitments, the TOAs will include stipulations that the terminal infrastructure be transferred to TNPA after 25 years, and that the entities make the capital investments needed to ensure that the terminals operate safely, continuously and efficiently.

The Department of Transport added in a statement that TNPA and the terminal operators would be expected to establish a framework governing third-party access to storage capacity within the precinct.

“This framework must ensure transparency of excess storage capacity and facilitate the allocation of specific dedicated capacity to support the entry of new market participants, in compliance with the regulations of the National Energy Regulator of South Africa.”

The directive also stipulated that the State-owned Central Energy Fund (CEF), which bought Sapref from BP and Shell in 2024, should be granted access to the existing terminal Infrastructure within the port limits, including marine and landside infrastructure for landing, exporting, and evacuating cargo.

The CEF would be allocated 15% capacity initially, which could be increased up to 30% over time should certain milestones be reached and if its utilisation of the existing allocated capacity rose to 90%.

The CEF would also act as a third-party access point for emerging black participants in Island View, while Creecy had also granted CEF the right to build and operate a new single buoy mooring system “to further entrench access for the new South African National Petroleum Company (SANPC)”.

At its official launch earlier this year, the SANPC indicated that it intended reinstating some of the tanking assets at Sapref to enable it to begin playing a role in the importation of petroleum products.

It also said it hoped to convert the single buoy mooring infrastructure in Durban, which was established to facilitate the importation of crude oil, into a facility that could handle multiple products.

Creecy said the initiative attempted to achieve the twin policy objectives of facilitating transformation of a sector still dominated by well-established players, while supporting ongoing fuel security.

“In my view, renewing leases at the Port of Durban Island View will ensure fuel supply security for South Africa, provide certainty to tenants, and encourage long-term investment in the infrastructure.

“Bringing new players into the industry will not only expand participation but also ensure that all South Africans have a stake in the port operations,” Creecy said.