Transnet National Ports Authority (TNPA) has officially entered into a significant 25-year terminal operator agreement with Zululand Energy Terminals (ZET) for the development of South Africa’s first liquefied natural gas (LNG) import terminal at the Port of Richards Bay. This milestone agreement follows ZET’s selection in 2024 as the preferred bidder to design, construct, and operate the terminal. ZET is a joint venture between Vopak Terminal Durban and Transnet Pipelines.

The LNG terminal, which will be located in the South Dunes precinct of the Port of Richards Bay, is expected to have an initial throughput capacity of at least two million tons per year. However, with future expansions, the terminal’s annual capacity could rise to more than five million tons over the course of the concession. The first phase of the development will feature a floating storage unit and an regasification system, with commercial operations slated to begin in 2028.

Acting CEO of TNPA, Phyllis Difeto, emphasized that this LNG terminal will attract an estimated investment of R7 billion to the Port of Richards Bay, reinforcing the port’s position as a prime gateway for LNG imports. She also highlighted TNPA’s ambitions to develop additional LNG terminals at the Ports of Saldanha (Western Cape) and Ngqura (Eastern Cape), contributing to South Africa’s energy security.

The development of this LNG terminal aligns with South Africa’s broader energy goals, including the introduction of at least 6,000 MW of gas-to-power projects in KwaZulu-Natal by Eskom and independent power producers.

In addition, TNPA has signed a R123-million agreement for the construction and operation of a new liquid bulk terminal at Richards Bay, to be managed by FFS Tank Terminals. This development is expected to enhance the port’s capacity to handle liquid bulk cargo, particularly bunker fuels, which are crucial for maritime logistics. The liquid bulk terminal is slated for commercial operation in February 2025 and will provide modernized bunkering services to a range of vessels, including bulk carriers, container ships, and tankers.

Both the LNG and liquid bulk terminals are expected to be key drivers of job creation in the region. The LNG terminal alone is projected to generate over 1,000 job opportunities during construction and operations, as well as create downstream business opportunities for the surrounding uMhlathuze region. The liquid bulk terminal will generate around 50 direct and indirect jobs throughout its development.

KwaZulu-Natal Premier Thami Ntuli has praised both projects, viewing them as significant milestones in unlocking economic opportunities for the province. “This signing confirms that KwaZulu-Natal will become the leading ecosystem hub, attracting much-needed investment and creating job opportunities for our people,” Ntuli said.

“The introduction of this groundbreaking LNG import facility by Zululand Energy Terminal is a critical response to our nation’s energy challenges. Equally important, is the redevelopment of the bunkering services facility to be operated by our partner, FFS Tank Terminals. This development will further enhance the Port of Richards Bay’s liquid bulk handling capabilities, focusing on bunker fuel operations that are essential to maritime logistics,” Dr Andile Sangqu, Transnet Board Chairperson.

These developments are poised to be game changers for the economic landscape of the region, further cementing Richards Bay’s position as a critical hub for energy and maritime logistics in South Africa.

Source: Transnet National Ports Authority

“We are pleased to announce the full operational launch of our HSFO bunkering facility, marking a key step toward realizing our vision of becoming a leading global maritime hub,” said Wilson Qu, CEO of Hambantota International Port Group (HIPG). “With our expanding service offerings and growing reputation for operational excellence, HIP is positioning itself as a critical player in the future of maritime trade and fuel supply. This expansion not only diversifies our services but also strengthens Sri Lanka’s role as a key maritime player in the Indian Ocean region.”

The newly operational HSFO facility includes a 6,000 cubic meter storage capacity, divided into two dedicated tanks at the port’s oil tank farm. A specialized pumping system, capable of transferring 400 metric tons per hour, facilitates fast and efficient fuel delivery. Additionally, the facility is equipped with advanced monitoring and remote-control systems to ensure precise and safe operations. This will offer significant convenience to ship owners using scrubbers who prefer HSFO for its cost-effectiveness and compliance with IMO 2020 sulfur cap regulations.

As part of the launch, HIP successfully discharged 5,000 metric tons of HSFO and 20,000 metric tons of VLSFO from the vessel Grand Ace 10 between January 30 and February 1, 2025. This marked the operational unveiling of HIP’s new HSFO bunkering infrastructure, setting the stage for greater fuel diversity in the region.

Strategically located along one of the busiest maritime routes between Europe and Asia, HIP provides vessels with a crucial refueling stop. The addition of HSFO to the port’s fuel offerings enables HIP to accommodate a wider spectrum of vessels, from large tankers to smaller cargo ships, each requiring different grades of fuel.

HIP’s collaboration with Sinopec, a global leader in energy, ensures the delivery of high-quality and reliable marine fuels. The port’s operational excellence is also certified by Lloyd’s Register (LR), a leading global authority in maritime classification. In 2022, HIP received its Fitness for Service (FSS) certification, further demonstrating its commitment to safety and compliance.

As the maritime industry continues to evolve, Hambantota International Port remains focused on innovation, infrastructure, and quality. This development underscores HIP’s commitment to addressing the ever-changing needs of the global shipping industry, boosting its competitiveness, and contributing to the economic growth of Sri Lanka.

Original article by Hambantota International Port

Date: November 6-8, 2024
Location: Durban, South Africa

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The lecture provided participants with an opportunity to engage with Iain Reynard, a seasoned logistics professional with a wealth of experience in planning and executing complex logistics projects. Reynard’s session focused on the critical phase of a project—the “Go Live”—and how to effectively apply the Golden Rules in Logistics to ensure seamless execution, mitigate risks, and maximize project success.

During the lecture, Reynard shared valuable insights on navigating the complexities of project logistics, drawing from his extensive experience. He emphasized the importance of thorough planning, clear communication, proactive problem-solving, and a deep understanding of logistical dynamics when transitioning to the “Go Live” phase. His practical tips and real-world examples captivated the audience, making the session highly engaging and informative.

The participants had the pleasure of learning how to manage and optimize logistics during the most challenging part of a project, equipping them with knowledge to make their next project as successful and well-executed as a Jack Reacher mission.

The collaboration between UKZN and EMC through such industry-focused guest lectures continues to inspire greatness, providing students, professionals, and industry stakeholders with unique opportunities to learn from experts and stay ahead in their fields.

The EMC Youth Innovation Challenge, now in its second edition, aims to inspire young minds to think creatively and develop innovative solutions that address pressing challenges in the maritime sector. The challenge provides a platform for high school students to present their ideas and solutions, promoting a culture of research, problem-solving, and leadership among the youth.

Mr. Zondo, the EMC Skills and Training Coordinator, expressed his enthusiasm for the challenge’s progress and the calibre of talent displayed by the participants. He stated, “The Youth Innovation Challenge is an exciting journey that not only exposes young students to the maritime sector but also cultivates their skills in innovation and critical thinking. We are thrilled to see the creativity and passion that these young minds bring to the table, and we look forward to seeing how their ideas can shape the future of the maritime industry.”

JG Zuma High School, one of the schools participating in this phase, has been actively engaged in the challenge, with students demonstrating strong interest and commitment. Mr. M. Dlamuka, representing JG Zuma High School, shared his thoughts on their involvement: “Our students have shown great enthusiasm and dedication towards this challenge. They have embraced the opportunity to learn and contribute ideas that could have a significant impact on the maritime industry. We are proud of their achievements thus far and are confident that they will continue to excel.”

Adding a student’s perspective, one of the participants, a Grade 11 learner from Margot Fontaine Secondary School, expressed excitement about being part of the challenge: “Being part of the EMC Youth Innovation Challenge has been an incredible experience for us. It has pushed us to think beyond the ordinary and come up with innovative solutions. This challenge has opened our eyes to the possibilities within the maritime sector, and we are grateful for this opportunity.”

As the EMC Youth Innovation Challenge moves forward, the participating schools will continue to develop their projects and present them to a panel of industry experts. The challenge not only encourages innovation but also aims to create awareness of the opportunities within the maritime industry, inspiring the next generation of maritime leaders.

The EMC Training and Skills Development Unit Working closely with African Marine Solutions (AMSOL) remains committed to nurturing young talent and driving innovation within the sector. Stay tuned for more updates as the challenge unfolds and these young innovators showcase their ideas for a sustainable future in the maritime industry.

As an organization dedicated to fostering growth within the maritime sector, EMC recognizes the importance of such strategic partnerships. The collaboration between SAIMI and Umfolozi College Maritime Academy is an excellent example of how institutions can work together to address the skills gap in the maritime industry and prepare the next generation of skilled maritime professionals. It is through such initiatives that we can ensure a robust and sustainable future for the sector.

EMC was honored to be represented at this significant event by our Managing Director, Ms. Zenzile Gwamanda, whose presence underscored our commitment to supporting initiatives that drive innovation, capacity building, and knowledge sharing within the maritime sector. The Business Breakfast session provided a valuable platform for stakeholders to engage, exchange ideas, and explore opportunities for collaboration that can lead to meaningful change and growth.

We believe that partnerships like the one between SAIMI and Umfolozi College Maritime Academy are crucial for developing a skilled workforce equipped to meet the evolving demands of the maritime industry. By investing in education and training, we are investing in the future of our industry, ensuring it remains competitive and sustainable in a rapidly changing global environment.

EMC looks forward to continued partnerships that drive excellence in maritime education and skills development. Together, we can build a stronger, more resilient maritime sector that benefits our communities and the economy at large.

We extend our congratulations to SAIMI and Umfolozi College Maritime Academy for this commendable initiative and reaffirm our commitment to supporting endeavors that promote the growth and sustainability of the maritime sector.

“As the Managing Director of the EThekwini Maritime Cluster, I am thrilled to witness the christening of these two newly launched boats built by Sandock Austral Shipyards. This milestone not only signifies a significant achievement for the local maritime industry but also underscores the region’s capability to produce high-quality marine vessels.” Said the EMC Managing Director, Ms. Zenzile Gwamanda when asked about the significance of this milestone.

According to a Transnet National Ports Authority statement, this acquisition is part of TNPA’s Marine Fleet Renewal program, aimed at improving shipping efficiency across South African ports by increasing the availability of marine craft. The renewal program is a pivotal aspect of TNPA’s strategic goals within the broader Transnet Recovery Plan.

The new boats, constructed and delivered by Sandock Austral Shipyards (SAS), are essential to port operations. They assist in towing and guiding vessels through narrow sea channels, handling mooring lines, and facilitating the docking, sailing, and repositioning of smaller vessels, including fishing boats, within the port.

“The deployment of these boats to the Port of Cape Town highlights the collaborative efforts within South Africa to enhance port operations and maritime efficiency. For the community, this accomplishment means job creation, skills development, and economic growth. It reflects our commitment to fostering a robust maritime sector that benefits the entire region. The success of this project is a testament to our collective expertise and dedication to advancing the maritime industry in South Africa.” concluded Ms. Gwamanda.

The christening event saw attendance from key industry stakeholders such as KZN MEC for Economic Development, Tourism, and Environmental Affairs, Rev. Musa Zondi; EThekwini Municipality EXCO Member and Chairperson for Economic Development, Tourism, and Environmental Affairs, Cllr Thembubuhle Ntuli; SAS CEO Prasheen Maharaj; TNPA’s representatives; EThekwini Maritime Cluster (EMC) Executives and Management; along with industry stakeholders.

These additions signify TNPA’s ongoing commitment to enhancing maritime operations and supporting the economic development of the region through improved port efficiencies.

Kindly click on the link below to read statement.

https://maritimecluster.co.za/wp-content/uploads/2024/05/MEDIA-STATEMENT-EMC-Announces-Withdrawal-121.pdf