In the tender, TNPA had stipulated a minimum 51 percent black ownership stake for the operator, double the requirement outlined in other government regulations. This put it at odds with petroleum industry body South African Petroleum Industry Association , which represents refinery operators such as BP, Royal Dutch Shell , Total and Sasol among others.
“The 51% ownership target is out of sync with the Liquid Fuels Charter which requires 25%, therefore it cannot be supported by SAPIA,” SAPIA Executive Director Avhapfani Tshifularo said, adding talks with Transnet were continuing. Transnet said the new terminal was meant to be operational by 2022 as South Africa’s national demand for petrol, diesel and jet fuel is forecast to rise to 83 billion litres a year by 2044 from 29 billion litres in 2015.
As part of a broader Island View transformation drive Transnet is renegotiating lease agreements, halving it from the current 50-year contracts and separating cargo owners from terminal operators. The 51% black ownership target is still applicable. SAPIA’s Tshifularo said leases have been temporarily renewed for a period of two years, but said changes to the way land is leased from Transnet could affect security of supply in Africa’s most developed economy.