KEY POINTS
- Island View leases will run another 25 years.
- New agreements demand transformation and training programmes.
- Minister Creecy links renewals to fuel supply security.
The Transnet National Port Authority will renew all tenant leases at the Island View petrochemical hub in Durban, a move aimed at both safeguarding South Africa’s fuel supply and opening the door for new participants in the sector. The directive was issued by Transport Minister Barbara Creecy under Section 79 of the National Ports Act No. 12 of 2005.
Island View leases and fuel supply security
The renewals cover major operators including Bidvest Tank Terminal, H&R South Africa, Chemoleo, UNICO TEC, Astron Energy, Vopak Terminal Durban, Engen, Total Energies, the South African Petroleum Refineries and Sasol. Creecy said the step would create long-term certainty for tenants, encourage investment in infrastructure, and help guarantee reliable energy supply for the country.
“In my view, renewing leases at the Port of Durban Island View will ensure fuel supply security for South Africa, provide certainty to tenants, and encourage long-term investment in infrastructure,” she said in a statement.
The minister added that introducing new players into the sector would expand participation while ensuring South Africans have a stake in port operations.
New agreements include transformation requirements
The lease renewals are tied to the conclusion of new terminal operator agreements. These come with conditions requiring companies to transfer infrastructure ownership to the port authority at the end of the 25-year concession. The aim is to ensure that assets such as storage tanks, pipelines, and related infrastructure are maintained to international standards.
Tenants will also be obliged to invest in terminal upgrades, guarantee efficient and safe operations, and set up training and incubation programmes designed to transfer technical skills. These programmes are intended to empower historically disadvantaged groups and expand their role in port operations.
According to BizCommunity, Creecy highlighted that companies must adopt transformation strategies to improve Broad-Based Black Economic Empowerment levels, boost Black ownership, and align with relevant legislation.
“This initiative attempts to achieve two important policy objectives,” Creecy noted. “It aims to transform a sector long dominated by established players while also ensuring fuel security. Third-party access will be managed in a regulated way to promote consistent use of Island View’s infrastructure.”
