Burgan Cape Terminals, which was awarded a 20-year contract by the Transnet National Ports Authority to develop a fuel storage and distribution facility at the Eastern Mole of the Port of Cape Town, has been identified as a strategic Operation Phakisa project.

Burgan Cape Terminals is an independent black empowered South African oil storage company which was formed in response to the severe shortage of storage capacity in South Africa and in line with the government’s National Development Plan.

The development, according to Burgan Cape Terminals, is intended to improve security of fuel supply and associated flexibility, both of which are key economic imperatives and policy goals for South Africa.

The project will be a multi-purpose facility used for the storage and distribution of both locally produced and imported fuels and making use of a state of the art truck loading facility which will allow for an efficient and swift distribution to end-users with limited impact on the surroundings.

Operation Phakisa was launched in October last year and is the country’s official move aimed at exploiting and developing the multi-billion rand potential of South Africa’s coastline. There are four areas of focus – marine transport and manufacturing, offshore oil and gas exploration, aquaculture and marine protection services, and ocean governance.

Burgan Cape Terminals is owned by the Thebe Investment Corporation (15%); Jicaro, a newly established 100% black owned BBBEE company with experience in the oil and gas sector (15%); and global storage terminal operator VTTI (70%). VTTI BV is a major player in the storage and terminal business created in 2006. A 50/50 joint venture between the Vitol Group, one of the world’s largest energy traders and MISC, the major Malaysian shipping company, VTTI owns and operates 11 terminals, offering a total capacity of 8 million cubic metres, across five continents.

According to government, Operation Phakisa (the word means ‘hurry up’) anticipates the ocean economy’s gross domestic product (GDP) contribution as being in excess of R20 billion by 2019