Transnet Seals R1.4 Billion 25-Year Deal with WASAA-CEF JV
Durban, KwaZulu-Natal – The Transnet National Ports Authority (TNPA) has taken a big step forward by signing a 25-year Terminal Operator Agreement with the WASAA CEF SOC Ltd joint venture to build and run a new liquefied petroleum gas (LPG) terminal at the Port of Durban’s Island View Precinct.
This R1.4 billion project is set to boost South Africa’s move towards cleaner energy and help cut down on carbon emissions in key industries. The deal, signed on Friday, 13 December 2025, at the Port of Durban LPG Terminal, comes after a fair and open bidding process under Section 56 of the National Ports Act No 12 of 2005.
The new facility, called the LOT 100 Terminal, will handle up to 50,000 cubic metres of LPG storage and can send out as much as 800 cubic metres per hour of heated LPG mix. It will store and manage different types of LPG, like pure butane, pure propane, and mixed blends, making it useful for both homes and big factories. Once up and running by the last quarter of 2027, it will meet the rising need for gas in areas like KwaZulu-Natal and the Eastern Cape, where people and businesses have been calling for better supply.
This project fits right into the country’s Just Energy Transition plan, which focuses on swapping out dirty fossil fuels for greener options while keeping the economy strong. It also lines up with Transnet’s Reinvent for Growth strategy, which aims to team up with private players to modernise ports and draw in more investment.
A Milestone for Port Transformation and Economic Growth
At the signing event, TNPA Board Chairperson Tshokolo Nchocho called the agreement a key part of their job to change South Africa’s ports and create chances for growth. “In keeping with this mandate and the concession framework stipulated in Section 56 of the Ports Act, we are here today to celebrate a milestone of great significance,” Nchocho said.
He pointed out how the deal shows TNPA’s push to update the port system. “A rigorous journey has brought us to this long-awaited and proud moment. I am immensely proud of the teams that have contributed their expertise to this transaction.
“Today is a clear reflection of TNPA’s strategic direction as we work to transform and modernise our port system, unlock infrastructure investment and support South Africa’s evolving energy and logistics landscape.
“This Terminal Operator Agreement represents a partnership that is aligned with national priorities, market demand and global energy dynamics. The development of the first LPG terminal in the Port of Durban is a timely and necessary response to where the world is moving,” Nchocho added.
The chairperson also praised the joint venture for bringing together a top-level black-owned and black-women-led company with a state energy body focused on secure supplies and long-term growth. “This is transformation that is grounded in capacity, performance and in a vision for expanding South Africa’s strategic role in the regional energy market. It is the type of collaboration we want to see driving future concessions and infrastructure development across the port system.
“This agreement further demonstrates the value of a transparent, competitive and well-governed Section 56 process,” he said.
The project will spread benefits widely, with about 51% of the work in areas like design, engineering, and services going to black-owned, women-led, youth-led businesses, and those run by people with disabilities. This focus on inclusion aims to build skills and create jobs in the local community.
Boosting Durban’s Role as an Energy Hub
Transnet Group Chief Executive Advocate Michelle Phillips highlighted how the deal comes at a perfect time for the country’s shift to cleaner energy. “At Transnet, we have been very clear about the direction in which we are steering the organisation. We are building a business that is stronger, more resilient, and fundamentally more capable of supporting national growth,” Phillips said.
She explained that TNPA wants to rebuild faith in its work, pull in new funds, and form teams that bring fresh skills to logistics. “This new agreement reflects exactly the type of partnership we envision for the future. It brings together an experienced state-owned energy company and an emerging transformation-driven operator, both committed to delivering value at the highest standard,” she added.
eThekwini Mayor Cyril Xaba gave his full backing, saying the project will strengthen Durban as a top spot for energy and logistics. “For us as a city, this is a welcome development, as it will greatly enhance Durban’s position as a leading energy and logistics hub. It will also boost our economy and create much-needed jobs,” Xaba said.
He noted how it supports the city’s Climate Action Plan by cutting emissions, which is vital for fighting climate change. “This project will also help us accelerate our programme to develop new electricity generation capacity. As you know, the Minister of Electricity and Energy has authorised the city to procure 400 megawatts of renewable energy from Independent Power Producers.
“This includes 300 megawatts of gas-to-power and 100 megawatts of solar PV. Therefore, the timing of this project could not be more fitting,” the Mayor said.
Xaba promised ongoing teamwork with Transnet and TNPA to make the most of the Port of Durban.
WASAA’s Growing Footprint in Energy Trading
The joint venture includes WASAA Gases, a level-one black-owned and black-women-led company, and the Central Energy Fund (CEF), a state body tasked with ensuring energy security and development. WASAA, founded by Nokwande Qonde, has been supplying LPG in sub-Saharan Africa for over 10 years. In 2022, they bought bp Southern Africa’s liquid bulk fuels import terminal in East London, which has 55 million litres of storage and serves big names like Shell, bp, and Engen.
Qonde sees the deal as a game-changer for women in the male-dominated oil and gas world. “I strongly believe that having women playing a key-role in the industry cannot continue to be an aberration, we need to be intentional about dismantling the age-old, patriarchal, and exclusionary culture that views female entrants as an anomaly at best, and intrusive at worst,” she said.
She added that LPG is used worldwide for power in hard-to-reach places without natural gas links. Qonde also thanked the Development Bank of Southern Africa (DBSA) for stepping in as the main funder. “With the DBSA in our corner, we are confident that the project will attract the requisite investment,” she said.
TNPA Acting Chief Executive Mohammed Abdool echoed the excitement. “Through this signed 25-year concession agreement, the Port of Durban will enhance its strategic position as a key national logistics hub.
“The terminal will not only benefit the local economy, but it will also enable access to clean energy and help reduce carbon emissions in the energy sector,” he said.
🔴Central News Special Edition | Issue 122: Download the Latest Print and E-Edition | Suspended Ekurhuleni Deputy Chief Julius Mkhwanazi Vows ‘I Can’t Go to Jail and Leave My Kids’ Amid Blue Lights Saga Scrutiny 🔴
Download here⬇️⬇️⬇️
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube