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Progress with new liquid bulk facility at the Port of Ngqura

[Nelson Mandela Bay, South Africa, 11 October 2018] Transnet National Ports Authority (TNPA) updated stakeholders at an engagement session recently regarding progress made on establishing the Port of Ngqura as a new petroleum trading hub for Southern Africa.

TNPA Support

TNPA has already completed Phase 1 of the infrastructure required to service the site. It includes the construction of a new access road from the N2 to the location where Oil Tanking Grindrod Calulo Holdings (OTGC), the private terminal operator, will build the new Tank Farm. TNPA also completed the detailed design of the new Port Entrance Plaza and the new main access road, including the pipe line servitude that will form the link between the new Tank Farm and the port.

Phase 2 will commence next month, which includes the landside development – forming the link between the Tank Farm and the berth. The port authority will provide infrastructure for the new OTGC Tank Farm by equipping Berth B100 to function as a liquid bulk berth. It will also construct a new access road from the Tank Farm to the berth kuusamonkalastusalue. TNPA will provide all the associated services and construct a new port entrance on the eastern side of the Couga River.

Key developments include:
• Funding approval were obtained
• Critical path packages were advertised
• The evaluation and contract awarding process was started
• The environmental search and rescue activities are due to start on 1 November 2018

OTGC Commitment

According to the Build, Operate and Transfer (BOOT) agreement OTGC will plan, fund, construct, maintain and operate the new liquid bulk handling facility in the port. The concept engineering design and the relevant surveys have been completed and construction is due to start next month. The design caters for 200 000 cbm of bulk storage and final total capacity of 790 000 cbm. The planned commissioning is at the end of 2020.

Phase 1 will cater for dedicated jetty pipelines, bulk storage for up to 200 000 cbm, road loading with a Vapor Recovery Unit (VRU), state-of-the-art firefighting facilities and site drainage facilities. Provision has been made for the receipt, storage and distribution of Liquefied Petroleum Gas (LPG).

The infrastructure will be designed to provide the following services – to accommodate vessel sizes of up to 100 000 deadweight tonnage, road loading facilities, inter-tank transfer/recirculation facilities, stock accounting in real time, office facilities for customers and an independent laboratory.

The Partnership

OTGC is a majority South African owned Level 1 BBBEE company. This Joint Venture between Oiltanking, the Grindrod Group and Calulo has the following strengths – international terminal operating expertise, local knowledge and sound experience and business expertise. It is committed to the technical, operational, Health, Safety, Security, Environment (HSSE) and management standards of oiltanking activities in SA.

The deep-water Port of Ngqura is a strategic location for the facility as it can accommodate vessels up to 100 000 deadweight tonnage. The facility has the potential to establish itself as a global transhipment and trading hub for West and East Africa. It will reduce reliance on the Port of Durban for transhipments to coastal ports.

PE Tank Farm

This OTGC development in the Port of Ngqura will make way for the decommissioning and remediation of the existing liquid bulk facilities in the Port of PE. As part of the cut over strategy and subsequent to the commissioning of the Ngqura facility, the PE Tank Farm operators will wind down operations over a period of four months. During this period it is envisaged that no further related shipments will be received in the Port of PE. TNPA is working closely with the PE Tank Farm operators to compile a decommissioning and remediation plan, which once approved by Department of Environmental Affairs, will be executed after the four month “winding down period.”

Cost of the Project

The estimated investment by OTGC for Phase 1 of the Port of Ngqura liquid bulk facility will be R 800m. TNPA, being the port authority responsible for investment in basic port infrastructure, will invest R 1.2bn in common user infrastructure for future terminal operators and port users at the Port of Ngqura’s Multi-Purpose Terminal (Finger Jetty) i.e. the B and C series berths in the port. Berth B100 is the common user berth where liquid bulk vessels will call and where OTGC will install loading arms to load and discharge cargo for the liquid bulk facility. Other basic infrastructure include access roads, bulk water and electricity services and an entrance plaza to allow for liquid bulk, hazardous and abnormal cargo to enter the port through a separate entrance which ensures a safe cargo working environment.

Timelines of the Project

TNPA and OTGC signed the agreement in December 2016. With projects of this nature, once the agreement was signed, OTGC could then proceed to engage with stakeholders such as regulatory authorities, potential customers and funders for the development of the facility. These matters have now been addressed and TNPA and OTGC also aligned on the optimal design for Phase 1 of the facility to be constructed at Ngqura. This took slightly longer than anticipated, but the development period of 24 months will commence on 1 November 2018 and we look forward to having an operational terminal at the Port of Ngqura by 1 November 2020