Transnet National Ports Authority (TNPA) has taken a major step in strengthening South Africa’s energy security and modernising port infrastructure with the signing of a 25-year Terminal Operator Agreement for the development of the Port of Durban’s first liquefied petroleum gas (LPG) terminal.
The agreement, signed on 12 December, appoints the WASAA–Central Energy Fund (CEF) Joint Venture as the developer and operator of the LPG terminal in the Island View precinct, following a competitive procurement process conducted under Section 56 of the National Ports Act.
Speaking at the signing ceremony, TNPA Board Chairperson T.P. Nchocho said the project reflects the authority’s developmental mandate to transform the national port system and stimulate economic growth.
“Each of these ceremonies serves as a reminder of a mandate fulfilled by TNPA to transform the South African ports system by creating opportunities that translate into economic growth,” Nchocho said.
The project, valued at approximately R1.4 billion, is expected to play an important role in South Africa’s Just Energy Transition by expanding access to cleaner-burning fuels while diversifying the Port of Durban’s commodity mix. Once operational, the terminal will provide 50,000 cubic metres of LPG storage capacity and will be capable of dispatching up to 800 cubic metres per hour, supplying industrial and residential markets across KwaZulu-Natal, the Eastern Cape hinterland and the broader SADC region.
Nchocho said the agreement reflects TNPA’s strategic direction as global ports evolve beyond traditional cargo handling. “Across global supply chains, ports are transforming into multi-energy platforms that support cleaner fuels, improve energy security and create new industrial opportunities. South Africa cannot afford to lag behind,” he said.
The terminal also aligns with Transnet’s Reinvent for Growth strategy, which prioritises public–private partnerships to expand infrastructure capacity and meet changing market demand.
TNPA Acting Chief Executive Mohammed Abdool said the terminal would enhance Durban’s position as a national logistics hub while contributing to lower carbon emissions. “Through this signed 25-year concession agreement, the Port of Durban will strengthen its strategic position as a key national logistics hub and enable access to cleaner energy,” Abdool said.
Beyond energy supply, the agreement carries a strong transformation focus. The WASAA–CEF Joint Venture brings together a level 1 black-owned, black-women-led entity with a national public energy institution mandated to support long-term energy development.
“This is transformation that is grounded in capacity, performance and a vision for expanding South Africa’s strategic role in the regional energy market,” Nchocho said. “It is the type of collaboration we want to see driving future infrastructure development across the port system.”
During the development and implementation phases, approximately 51 percent of industrial development opportunities linked to the terminal are expected to benefit black-owned, women-led, youth-led enterprises and businesses owned by people living with disabilities.
WASAA CEF Joint Venture Director Nokwanele Qonde said the partnership would unlock the potential of LPG as a cleaner and more accessible energy source. “This agreement allows us to assemble the infrastructure network needed to position LPG as a viable energy solution for residential, commercial and industrial use,” she said.
As the project moves closer to construction, Nchocho said the focus now shifts from planning to delivery. “The responsibility now is delivery of infrastructure, delivery of operational excellence and delivery of customer experience that enhances the reputation of the Port of Durban,” he said.
TNPA says the LPG terminal forms part of a broader effort to reposition South Africa’s ports to support economic growth, industrial development and climate transition, signalling a shift toward a more diversified and investment-ready port system.
