SOUTH Africa’s Transnet National Ports Authority (TNPA) has concluded a 25-year, multi-million rand Terminal Operator Agreement with FFS Tank Terminals to operate a Liquid Bulk Terminal at the Port of Cape Town, marking the latest in a series of significant private sector partnerships aimed at revitalising South Africa’s port infrastructure.
The agreement, signed Monday, will see FFS Tank Terminals invest R195.7 million over the first three years to refurbish and upgrade terminal infrastructure. The development is expected to double the facility’s diesel storage capacity from 14,600m³ to 29,200m³ – a 100% increase – while expanding bitumen storage by 47%, from 4,700m³ to 6,900m³.
The deal represents a critical intervention in securing liquid bulk supply chains for local industries and comes as TNPA intensifies efforts to attract private capital into port operations. FFS Tank Terminals’ appointment follows similar major concession agreements signed by other Transnet divisions in recent months, underscoring a broader strategic shift toward private sector participation in state-owned infrastructure.
“The partnership with FFS Tank Terminals is crucial for enhancing the port’s competitiveness and operational efficiency,” said Phyllis Difeto, Acting TNPA Chief Executive, at the Cape Town signing ceremony. “It reinforces the Transnet Reinvent for Growth Strategy, which transitions the business from stabilisation to sustained growth for future readiness.”
FFS Tank Terminals was appointed preferred bidder in December 2024 following a competitive Section 56 process under the National Ports Act of 2005. The company brings over 20 years of experience in the liquid bulk sector.
The agreement forms part of TNPA’s consolidation strategy within the liquid bulk precinct, merging two previously separate sites into a single operational area to improve commercial viability. The development brings the total number of licensed terminal operators at the Port of Cape Town to 10, eight of which are privately owned – demonstrating substantial private sector engagement in port activities.
“We are pleased to reach this important milestone in our diversification strategy,” said Andrew Canning, FFS Tank Terminals Chief Executive Officer. “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.”
The enhanced storage capacity is expected to strengthen supply chain security for diesel and bitumen imports, supporting regional economic stability and industrial operations dependent on reliable liquid bulk supplies.
The agreement aligns with Transnet’s broader infrastructure modernisation agenda, which seeks to leverage private investment and operational expertise to address decades of underinvestment in port facilities while maintaining state ownership of strategic assets.
