Transnet launches environmental assessment for LNG Terminal at Port of Ngqura

SOUTH AFRICA – Transnet National Ports Authority (TNPA) has taken a significant step towards the development of a Liquefied Natural Gas (LNG) terminal at the Port of Ngqura, launching the Environmental Impact Assessment (EIA) process.

This move, conducted in collaboration with Infrastructure South Africa (ISA) and the Industrial Development Corporation (IDC), aims to ensure the proposed terminal meets necessary environmental and regulatory standards.

A request for proposals (RFP) has been issued to appoint a service provider to oversee the environmental assessment.

“This involves conducting a detailed analysis of ecological and local regulations to determine critical environmental authorisations,” TNPA said in a statement.

The EIA process will include a range of studies to assess the project’s potential environmental and socio-economic impacts.

These studies will cover areas such as seismic activity, marine ecology, climate change effects, and the broader socio-economic ramifications of the LNG terminal’s construction and operation.

Phyllis Difeto, TNPA Acting Chief Executive, stressed the importance of this step: “Through its commercial seaports, TNPA is at the forefront of enabling the gas-to-power project pipeline whilst ensuring the security of supply and unlocking global opportunities for sustainable impact.”

The Port of Ngqura’s LNG Terminal is one of South Africa’s priority infrastructure projects, which has been designated as a strategic integrated project.

The ongoing partnership between TNPA, ISA, and IDC is working to accelerate the completion of the EIA, with the RFP closing on 30 October.

In addition to the environmental process, negotiations are underway for a Terminal Operator Agreement (TOA) between TNPA and the Strategic Fuel Fund (SFF), which will oversee the terminal’s construction and 30-year operational period.

Transnet CEO pledges reforms in fruit export logistics

While the focus is on advancing energy infrastructure, Transnet CEO Michelle Phillips has also announced urgent reforms aimed at revitalizing South Africa’s fruit export logistics.

Speaking at the International Fresh Produce Association’s (IFPA) Southern Africa Conference 2024, Phillips acknowledged the difficulties faced by the fruit sector, particularly delays that have doubled transit times for exports to Europe.

“We need to stop the bleeding, fix the basics, and get the operations working again,” Phillips said, addressing concerns from industry stakeholders. These extended transit times have disrupted the supply chain, with one avocado exporter noting, “This extended transit time is now the norm, but it’s unsustainable.”

Phillips highlighted the importance of private sector participation (PSP) in improving the efficiency of Transnet’s operations. “We want the private sector involved in our business, there’s no doubt about that,” she said, while assuring that PSP does not equate to privatization.

Cold-chain rail transport has been identified as a key area for improvement, with Phillips discussing the potential for concessioning economically viable branch lines to streamline the movement of perishable goods.

“We want rail to be 10% to 20% cheaper than using road transport,” she explained, emphasizing the need for additional reefer train sets equipped with on-board power supply.