April 29, 2024 [IOL]- The Port of Cape Town could soon have a new private sector equity partner operating its liquid bulk terminal in a bid to foster collaboration and unlock business value to deliver fit-for-purpose port infrastructure as the government ramps up its structural reforms programme.
This comes as Transnet National Ports Authority (TNPA) has called on interested parties to respond to a Request for Proposal (RFP) for the appointment of a terminal operator at the port.
This is a similar Public-Private Partnership, which saw Transnet last year awarding a 25-year concession to the Manila-headquartered International Container Terminal Services Inc (ICTSI) to develop, operate, upgrade and manage its biggest container terminal, Terminal Pier 2, at the Port of Durban.
The proposed facility at the Port of Cape Town is a brownfield site linked to Eastern Mole and Tanker Basin berths within the port’s Liquid Bulk Precinct.
The berths within this precinct are classified as common user berths for liquid bulk commodities and the advertised site has a total footprint of approximately 18 722 square metres.
There are three liquid bulk berths available at the Port of Cape Town with installed and theoretical berth capacity of 3.4 million kilolitres and 6.4 million kilolitres, respectively.
TNPA is implementing a phased approach with the issuing of the RFPs for the Port of Cape Town’s Liquid Bulk Precinct, ensuring compliance with Section 56 of the National Ports Acts.
In a statement, Port of Cape Town acting port manager Ophelia Shabane said the scope of the RFP will require the successful bidder to acquire, operate, maintain, refurbish or construct and transfer a liquid bulk terminal for a 25-year concession period.
“The issuance of the RFP is aligned to TNPA’s mandate to facilitate the provision of port services and facilities with emphasis on port revenue diversification, job creation, infrastructure development and collaboration with the private sector to foster sustainable economic growth,” Shabane said.
“The Liquid Bulk Precinct within the Port of Cape Town enables the efficient movement of liquefied cargo across South Africa and beyond, facilitating international trade and ensuring security of supply.”
The RFP is deemed as Phase 1 of the Section 56 project processes, and strategic concessions continue to enhance the port’s attractiveness and overall competitiveness
The compulsory RFP briefing session will be held with all interested parties at the Port of Cape Town on Tuesday 30 April 2024 and the bid closing date is 15 July 2024.
Meanwhile, the board of Transnet last month proceeded to finalise the contract awarded to International Container Terminal Services following the conclusion of the financial due diligence.
Transnet said the completion of the financial close was still subject to other non-financial processes, which were currently underway, and set to be concluded without undue delay.
“The partnership will have a positive impact on Transnet, container supply chains and on the competitiveness of South Africa’s economy,” the company said.
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