26.07.2016. South Africa is requesting proposals to design, finance, build and operate a liquid bulk terminal to handle petroleum products at port of Durban, according to local media.
A shortage of refining capacity expected to encourage a growth in product imports was cited as the principal reason behind the request.
A call for tenders document issued by the state owned transport infrastructure group Transnet says bidders must be at least 51 percent owned by black citizens to qualify to participate in the 25 year concession. Bids need to be submitted by 27 January 2017.
The country is also working toward being able to handle cleaner fuels that have lower sulphur content.
Estimates on the cost of upgrading terminals to work with the new specifications range from US$2.7 billion to $7 billion, although how this would be finance remains unclear.
“Based on the current growing demand for liquid fuels and the lack of investment in refining or alternative liquid fuel manufacturing capacity, South Africa and the region will remain short of products in the foreseeable future,” the Transnet document said. Figures project Durban’s fuel imports to grow to 34.5 billion litres in 2044 from 5.2 billion this year.
26th July 2016
