Transnet signs LNG, bulk terminal deals to boost Richards Bay

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The development is part of Transnet’s broader strategy to strengthen freight logistics through private-sector partnerships, aligning its operations with key economic commodities. The expansion is expected to boost the port’s capacity for liquid bulk handling, positioning Richards Bay as a critical hub in the country’s transport network and a primary entry point for LNG imports.

Energy goals and job creation

Acting TNPA chief executive, Phyllis Difeto said: "This milestone underscores our commitment to transforming the country’s logistics sector and being responsive to national energy goals.

The projects collectively contribute to the uMhlathuze region's economic resilience, with significant job creation in construction, operations and port-related industries. These initiatives highlight our commitment to transformation and workforce empowerment."

The signed LNG Terminal Operator Agreement (TOA) with Zululand Energy Terminals for 25 years contributes to government's Just Transition programme, which aims to introduce at least 6,000 MW of gas-to-power projects to meet the country’s limited and depleting energy supply.

As outlined in SA's energy plans, the operationalisation of this import terminal is essential in enabling gas-to-power initiatives for both Independent Power Producers and Eskom. With TNPA’s investment boost of just over R7bn, the projected volume throughput for the LNG import terminal is at least two million tons per annum (mtpa) and could potentially reach over five mtpa over the concession period.

Liquid bulk terminal agreement

TNPA has also secured a R123m agreement with FFS Tank Terminals for the development and operation of a liquid bulk terminal. This project will enhance the port’s capacity for handling liquid bulk cargo, particularly bunker fuels essential for maritime logistics.

Following the terminal’s commercial operationalisation in February 2025, the agreement will facilitate a modernised liquid bulk facility, efficiently delivering bunkering services to bulk carriers, container ships, and tankers. The facility will ensure a stable fuel supply over the 25-year concession period.

The development of these two terminals is a game changer in the economic landscape of the region.

The LNG terminal alone is projected to create over 1,000 job opportunities during construction, operations including downstream business for communities surrounding the uMhlathuze region, while the bunkering services terminal aims to generate around 50 direct and indirect jobs from the project initiation phase.