Oiltanking Grindrod Calulo (Pty) Ltd (OTGC) announced today that the development of its Liquid Bulk Terminal project in the Port of Ngqura has been discontinued.
OTGC was awarded the preferred bidder status in 2011 by Transnet National Ports Authority (TNPA) to develop a liquid bulk storage terminal in the Port of Ngqura. The facility was intended to replace the existing terminal in Port Elizabeth and service fuel importers in the Nelson Mandela Bay region.
Since the date of award, OTGC has been engaged in negotiating the build, own, operate and transfer (BOOT) agreement, engineering design of the terminal, obtaining commercial commitments from customers, negotiating funding with lenders, and obtaining the required regulatory permits for the construction of the project.
Unfortunately, OTGC has not been able to achieve a commercially viable business case for the proposed terminal. The evolving market and commercial requirements for a reduced terminal capacity and land could not be accommodated in the parameters of the TNPA procurement process. OTGC is, therefore, in the regrettable position that it has had to discontinue the project.
OTGC is a joint venture between operating partner Oiltanking GmbH, a German multinational that is one of the largest independent operators of tank terminals for oils, gases and chemicals worldwide, and local partners Grindrod Limited, a JSE listed Freight and Financial Services company, Calulo Investments (Pty) Ltd, a diversified BBBEE investor in the petrochemical industry and Adopt-a-School Foundation, a non-profit organisation which supports education in disadvantaged schools.
Source: Oiltanking, Grindrod Group