TNPA, FFS Tank Terminals Partner to Boost Cape Town Liquid Bulk Capacity

The Transnet National Ports Authority (TNPA) has entered into a landmark Terminal Operator Agreement (TOA) with FFS Tank Terminals to operate and maintain a Liquid Bulk Terminal at the Port of Cape Town for a period of 25 years. The agreement marks a significant step in expanding South Africa’s fuel and bitumen storage capacity while supporting the broader goal of modernising port infrastructure and enhancing trade efficiency.

Major Investment to Enhance Port Infrastructure

Under the agreement, FFS Tank Terminals will invest approximately R195.7 million over the first three years to refurbish, expand, and modernise the terminal. This includes substantial infrastructure upgrades aimed at improving operational reliability, ensuring safety and environmental compliance, and guaranteeing a consistent fuel supply to local industries.

Once fully operational, the newly upgraded terminal will double its diesel storage capacity by 100% — from 14,600m³ to 29,200m³ — and increase bitumen storage from 4,700m³ to 6,900m³, representing a 47% total storage capacity increase. This expansion will not only meet the growing demand for fuel in the Western Cape but also enhance South Africa’s strategic energy security.

Strategic Importance and Regulatory Backing

The concession follows the completion of the Section 56 process of the National Ports Act (2005), which governs the granting of port concessions to private operators. FFS Tank Terminals was officially appointed as the preferred bidder in December 2024, following a rigorous competitive selection process.

TNPA officials have hailed the agreement as a prime example of how the National Ports Act continues to advance the country’s national, strategic, and economic objectives by promoting partnerships that attract private sector investment into state-owned port infrastructure.

Strengthening Port Competitiveness and Private Sector Involvement

The new concession forms part of TNPA’s consolidation of terminal operations within the Port of Cape Town’s liquid bulk precinct. Two existing sites have been merged into a single operational area to improve commercial viability, reduce duplication, and streamline cargo handling operations.

This development increases the total number of licensed terminal operators at the Port of Cape Town to 10, eight of which are privately owned — a strong indicator of growing private participation in South Africa’s port logistics sector.

Speaking at the signing ceremony, Acting TNPA Chief Executive, Phyllis Difeto, emphasised the strategic value of the new partnership.

“This agreement reinforces TNPA’s commitment to ensuring continued and efficient liquid bulk operations at the Port of Cape Town. It strengthens our competitiveness and supports the Transnet Reinvent for Growth Strategy, which aims to transition our operations from stabilisation to sustainable growth and future readiness,” Difeto said.

FFS Tank Terminals’ Experience and Role

FFS Tank Terminals, a subsidiary of the FFS Group, brings over two decades of experience in the liquid bulk storage and logistics sector. The company’s operations span fuel supply chains, storage infrastructure, and technical terminal management, making it a key player in supporting South Africa’s industrial and energy needs.

Chief Executive Officer Andrew Canning welcomed the agreement, calling it a milestone in the company’s diversification and growth strategy.

“This partnership extends our expertise into a new phase of independent liquid bulk storage. We appreciate TNPA’s professional and collaborative approach, which underscores its commitment to facilitating private sector growth and employment creation,” Canning said.

He added that FFS Tank Terminals remains committed to strengthening its relationships with TNPA, customers, and stakeholders, as it continues to invest in infrastructure that supports South Africa’s industrial and economic resilience.

Driving Regional Economic Growth and Energy Security

The expansion of the Cape Town Liquid Bulk Terminal is expected to improve the reliability of fuel imports, reduce logistical bottlenecks, and support key industries such as transport, manufacturing, and construction. The terminal’s increased capacity will also contribute to regional economic stability, enhancing the Western Cape’s ability to meet rising energy demands.

By integrating private sector innovation with public infrastructure oversight, TNPA aims to modernise South Africa’s port network and position the country as a competitive maritime logistics hub in the region.

The TNPA–FFS partnership reflects the government’s broader commitment to leveraging public-private collaborations for infrastructure development, economic diversification, and energy supply security — key components of South Africa’s post-pandemic economic recovery agenda.