The Fuels Industry Association of South Africa briefed a joint parliamentary meeting on 28 November 2025 on the strategic importance of the Durban Island View Precinct (IVP), the challenges facing operators, and the measures required to protect South Africa’s national fuel supply. The briefing was delivered to the Portfolio Committees on Trade, Industry and Competition; Transport; Minerals and Petroleum Resources; and Electricity and Energy.
The Association outlined the role of the IVP as South Africa’s primary energy gateway and a designated National Key Point. Operators in the precinct manage 72% of imported liquid fuels, including 93% of petrol imports and 71% of diesel imports. They also produce and distribute essential lubricants for mining, heavy industry and manufacturing, and supply supplemental jet fuel to airports across the country. The Association stressed that the national economy cannot function without a stable and fully operational IVP.
Parliament was updated on the prolonged uncertainty created by Transnet’s proposed Island View Strategy. The absence of a practical Section 56 implementation plan resulted in long-standing operators being kept on month-to-month leases while still managing tightly integrated infrastructure that connects refineries, pipelines, pump stations, berths and storage facilities. This uncertainty affected long-term planning and slowed investment in the precinct.
Investment levels declined significantly during this period. Operators who had invested R2.4 billion in 2018 invested R1.1 billion in 2019 and roughly R500 million in 2021 and 2022. Despite these declines, operators continued to maintain essential infrastructure to ensure national fuel supply security.
Given the risks to the country’s strategic supply chains, operators instructed the Association to apply for a Section 79 Direction from the Minister of Transport. Section 79 allows the Minister to intervene where national security, strategic interests or economic stability are at risk. This Direction provides operators with the regulatory certainty required to maintain and improve infrastructure and ensure uninterrupted fuel supply, while also ensuring that immovable terminal assets will transfer to the port authority at the end of lease terms.
The Association reiterated its members’ commitment to NERSA’s Allocation Guidelines for Uncommitted Capacity, ensuring transparent and fair access to storage and pipeline infrastructure. Members continue to make uncommitted capacity available to third parties where feasible and work with NERSA to expand access.
Members benefiting from the Minister’s Direction plan to invest R60 billion in operations linked to the IVP and have already contributed approximately R700 million to SMME and supplier-development initiatives within their supply chains.
The Association emphasised its intention to continue working closely with Transnet National Ports Authority, NERSA and government to stabilise operations at the IVP, strengthen investment, safeguard fuel supply, support transformation, enhance local refining capacity and protect the national interest.
