Transnet Pipelines seeks private operators for five fuel depots

State-owned logistics operator Transnet Pipelines (TPL) has formally issued Requests for Proposals (RFPs) inviting private sector operators to lease, maintain, and operate five liquid fuel storage facilities across three South African provinces.

Transnet is using a competitive tender process as part of its broader asset optimisation strategy to monetise underutilised infrastructure. TPL CEO Sibongiseni Khathi highlighted the strategic alignment with Transnet’s corporate turnaround plan, noting:

“The release of these RFPs aligns with Transnet’s Reinvent for Growth Strategy and our commitment to unlocking value from strategic infrastructure assets through meaningful private sector participation.”

Khathi added that through these partnerships, the operator aims to “repurpose and enhance these facilities in a manner that strengthens energy security, supports national development objectives, generates new revenue streams and reinforces the long-term sustainability and competitiveness of our infrastructure portfolio.”

Asset portfolio and geographic footprint

The five petroleum and liquid fuel storage assets are located in key inland industrial nodes across the Free State, KwaZulu-Natal, and Mpumalanga:

• Free State depots: Bethlehem, Kroonstad, and Magdala Liquid Petroleum Depots
• KwaZulu-Natal asset: Ladysmith Fuel Storage Facility
• Mpumalanga depot: Standerton Petroleum Depot

Collectively, the properties encompass established midstream infrastructure, including fuel storage tanks, pumping networks, operational buildings, utilities, and integrated firefighting systems. The facilities are positioned to handle fuel receipt, storage, and distribution by road and, where feasible, rail connections.

Read:
Transnet seeks private partner for R44bn manganese corridor
Durban port deal rescues Transnet from another nasty loss

Outlining the commercial objectives of the leasing program, Kresen Naicker, head of business development at Transnet Pipelines, emphasised the value to potential operators: “These leasing opportunities provide industry participants with access to established fuel storage infrastructure in strategically located inland markets. We are looking for capable operators and partners who can bring market expertise, operational capability, and a clear focus on customer needs to unlock the potential of these facilities.”

Naicker added that the initiative “creates an opportunity to strengthen regional supply resilience while enabling the facilities to better respond to evolving requirements across the fuel value chain.”

Operational requirements and submission deadlines

The long-term lease agreements target experienced upstream, midstream, or downstream petroleum companies, consortiums, and joint ventures. Under the terms of the RFPs, successful private lessees will be required to fund appropriate infrastructure upgrades, maintain operational and environmental safety standards, and ensure full regulatory compliance across all sites.

Transnet Pipelines currently manages and operates 3 114 km of high-pressure liquid fuel and gas pipelines, transporting approximately 16 billion litres of refined petroleum products, crude oil, and gas annually across South Africa.

Proposal submissions for the five properties are scheduled to close on 4 December 2026, following mandatory site briefing sessions at each facility.

Read:
TNPA opens bidding for 25-year East London LNG port project
As Transnet’s rail and port operations stabilise, debt becomes the next problem