FFS Tank Terminals, a wholly owned subsidiary of FFS Refiners, hosted a sod-turning event at the Maydon Wharf precinct in the Port of Durban on Wednesday this week.
The event marked phase 1 of a R350million investment into the expansion of the existing storage and handling facility of FFS Tank Terminals, formerly OTGC Terminals before the acquisition by FFS Refiners in May 2022. This expansion will enable the bulk import of bitumen into the Port of Durban, an essential product in critical road construction projects. It will also provide much-needed jobs.
“As a Level 1 BBBEE black-owned company, the acquisition of this business and subsequent expansion projects provides a real example of how successful transformation can be achieved. Furthermore, South African contractors will carry out the expansion, providing a much-needed boost for the local economy,” states, Andrew Canning, CEO of FFS Refiners.
Critical Infrastructure and FFS Tank Terminals’ role in eradicating potholes. There is a massive demand for bitumen in road construction projects in South Africa, especially related to the strategic infrastructure programmes outlined by President Cyril Ramaphosa that need to be addressed for South Africa’s economy to be put back on track. FFS Tank Terminals’ facilities will provide the industry with the security of a bulk supply of bitumen following the untimely demise of the local refining industry.
In addition, the Vala Zonke programme, announced by Transport Minister Fikile Mbalula, aims to address the scourge of potholes nationally. The availability of bitumen will enable this critical infrastructure programme to meet its goals and keep the economy of South Africa moving forward.
Canning, says that currently the only available import options for this liquid product is directly from ship to road tanker, which is a time-consuming and environmentally unfriendly practice. “I am confident that our facility will become the hub for bitumen import and other high flash oil-based products into Durban,” says Canning.
Canning is pleased to announce that Rubis Asphalt, a large importer of bitumen into the country, has signed a contract to be the anchor tenant for FFS Tank Terminals Durban. Rubis Asphalt is also FFS Refiners’ anchor tenant in Cape Town and currently provides the only bulk import storage facility for bitumen into Cape Town.
“Following our successful venture in Cape Town, FFS Refiners and Rubis Asphalt have again joined hands to develop a dedicated bitumen import and storage terminal at the Port of Durban. The long term storage agreement between the 2 companies demonstrates Rubis’ commitment to the South African asphalt and road construction industry. With this Rubis Asphalt will ensure that quality and hot bitumen will always be available throughout the year at the Port of Durban” states Mark Simonsen, Rubis Asphalt.
“Road infrastructure plays a vital role in the economy and is considered a major driver for growth and employment. FFS Tank Terminals’ substantial investment and Rubis Asphalt’s long term commitment is our contribution to and confidence in the South African economy” says Simonsen. Growth and opportunity as FFS Tank Terminals is borne.
The acquisition of OTGC Terminals was borne from FFS Refiners’ anticipation of the closure of local refineries. Canning elaborates, “we saw an opportunity with the contraction and closure of the refineries. This acquisition unlocks a sustainable revenue stream from storage rentals to third-party tenants and also ensures steady import feedstock options for our traditional markets.”
Expanding the storage and handling facilities using local contractors. The expansion consists of the construction of storage tanks with a total capacity of 26 500 cubic meters (26 500 000 litres) and will be implemented in two phases.
Phase 1 will be constructed for rental and will include three storage tanks with a capacity of 7 500 cubic meters (7 500 000 litres), including product heating facilities, an import pipeline, two loading gantries and two weighbridge facilities – phase 1 is already underway with all engineering design work completed and expected to operate by September 2023. Furthermore, South African civil and tank fabrication contractors have been appointed, ensuring job creation is prioritized during the expansion.
“As the Port of Durban and Transnet National Ports Authority as a whole, we encourage and welcome such investments in our Ports. This capital investment reinforces the fact that the Port has a pivotal role to play in terms of being an enabler and catalyst for economic growth and development, both for the region as well as the country.
The port will continue to support businesses like FFS, as this milestone is aligned to one of our core mandates of being a facilitator of trade,” states Port of Durban, Port Manager, Ms Mpumi Dweba-Kwetana.
Phase 2 design is ongoing (estimated completion in November 2024) and will include storage tanks with a capacity of 19 000 cubic meters (19 000 000 litres). “We already have interest from several potential customers for storage services, and once commitments and regulatory authorizations are obtained, we can commence with the construction activities,” says FFS Tank Terminals’ Business Division Manager, Mbuseleni Zulu.
The Maydon Wharf site was strategically chosen by FFS to avoid the congestion currently being experienced at the Island View Complex. “The FFS Tank Terminals at Maydon Wharf is less congested and offers easier access and therefore opportunity to escape the delays by choosing the Maydon Wharf facility instead,” says Zulu.
The expansion will lead to more jobs through true transformation. In the tumultuous South African economic climate where job losses plague employers and employees, FFS Refiners aims to bolster its staff complement with this expansion. Currently, FFS Tank Terminals employs 30 full-time employees, anticipating an increase of 20 more permanent staff after the expansion, while parent company FFS Refiners, with the acquisition of OTGC Terminals, now has more than 400 permanent employees.