• Transnet signed a 25-year concession with FFS Tank Terminals to operate and maintain a liquid bulk terminal in Cape Town.
• The deal includes a ZAR 195.7 million ($11.4 million) investment over three years to modernize infrastructure and double diesel storage capacity.
• South Africa’s ports rank among the least efficient globally, according to the World Bank, prompting privatization moves to attract investment.

Transnet National Ports Authority said it signed a 25-year concession agreement with FFS Tank Terminals for the operation and maintenance of a liquid bulk terminal at Cape Town port. The deal includes an investment plan of 195.7 million rand ($11.4 million) over the first three years.

The agreement covers refurbishment and modernization of the terminal to boost efficiency. Diesel storage capacity will double to 29,200 cubic meters, while bitumen storage will rise from 4,700 to 6,900 cubic meters. Overall storage capacity will expand by 47%, raising throughput at Cape Town port.

Transnet has already granted concessions for several other port facilities to private operators. The government aims to attract investment to increase capacity and improve supply for local industries.

South African ports have been ranked among the world’s least efficient by the World Bank. In its Container Port Performance Index, published in September with S&P Global Market Intelligence, the institution placed Cape Town 43rd out of 46 African ports studied, although it noted some improvements.

Analysts point to underutilization of the national rail network as a major cause of inefficiency. Once the backbone of port logistics, the system has been weakened for years by aging infrastructure and widespread vandalism.

This article was initially published in French by Henoc Dossa

Adapted in English by Ange Jason Quenum