South Africa’s state-run Transnet National Ports Authority (TNPA) has appointed shipping services company FFS Tank Terminals as the preferred bidder to refurbish and operate the liquid bulk terminal at the Port of Cape Town on a 25-year concession.
The R102 million project is a strategic move to modernize port infrastructure, diversify cargo capacity and strengthen supply chains. By expanding beyond edible oils to specialty chemicals, this upgrade will strengthen South Africa’s logistics resilience and position Cape Town as a more competitive liquid bulk hub.
Cape Town upgrade signals strategic shift
The brownfield development spans approximately 6,289 square meters within the port’s liquid bulk area, and the project means upgrading and reusing existing infrastructure rather than building a new facility from scratch.
This approach reduces costs, accelerates schedules, and maximizes the value of traditional port assets. Under this concession, FFS Tank Terminal will finance, construct, operate and maintain the terminal, and then transfer the terminal to TNPA at the end of the 25-year contract period.
Key upgrades include strengthening storage tanks, reusing existing import pipelines, modernizing the Nautilus facility, an older on-site processing and handling unit within the liquid bulk area, and strengthening gantry and receiving systems to improve efficiency and throughput.
Once complete, the terminal will handle additional cargo such as caustic soda lye and monoethylene glycol, significantly expanding its product mix beyond vegetable oils and supporting growing industrial demand.
TNPA says the project is consistent with its diversification strategy and will improve infrastructure utilization and long-term commercial viability across South Africa’s ports system, while ensuring security of supply to the food and industrial sectors.
“This will be a vital contribution to economic stability while optimizing the utilization of infrastructure and the commercial potential of the port,” Dr. Dineo Mazibuko, General Manager of Commercial Services at TNPA, said in a statement.
From the foundation in 2025 to the expansion of energy logistics
The appointment builds on the October 2025 agreement between TNPA and FFS Tank Terminals, which includes a major investment of R195.7 million over three years to expand storage and improve operational performance at the Cape Town facility.
This previous contract outlined significant capacity increases, including doubling diesel storage to 29,200 cubic meters and expanding asphalt storage by 27% to 6,900 cubic meters, strengthening the port’s role in supporting downstream fuel and industrial markets.
In parallel, the agreement signed by TNPA in May 2025 at Richards Bay positioned liquid bulk infrastructure as a cornerstone of South Africa’s broader energy transition, including a complementary R123 million FFS terminal and a R7 million LNG import project.
Together, these developments highlight a coordinated national strategy to leverage private sector participation to modernize aging infrastructure, expand cargo diversity, and transform major ports into integrated energy and logistics hubs.
