State-owned logistics operator Transnet Pipelines (TPL) has issued Requests for Proposals (RFPs), formal invitations for companies to submit a bid, to lease, maintain and operate five liquid fuel storage facilities in the Free State, KwaZulu-Natal and Mpumalanga.
CEO Sibongiseni Khathi said the move fits Transnet’s Reinvent for Growth strategy, which seeks to generate new revenue streams by handing under-used infrastructure to private partners. He added that the partnerships are meant 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.”
What the tender involves
The five depots include fuel tanks, pumping networks, operational buildings, utilities and integrated firefighting systems. They are positioned to receive fuel, store it and distribute it by road, and where possible, by rail. The RFPs target experienced upstream, midstream or downstream petroleum companies, consortiums or joint ventures that can fund required upgrades, keep the sites safe and meet all regulatory requirements.
Kresen Naicker, head of business development at Transnet Pipelines, highlighted that the lease offers “access to established fuel storage infrastructure in strategically located inland markets” and that successful operators will need to bring market expertise and a clear focus on customer needs.
Proposals must be submitted by 4 December 2026, after mandatory site-briefing sessions at each facility. The long-term lease agreements will obligate lessees to maintain operational and environmental safety standards and to ensure full compliance with relevant regulations.
Transnet Pipelines currently manages 3 114 km of high-pressure liquid fuel and gas pipelines, moving roughly 16 billion litres of refined petroleum products, crude oil and gas each year across South Africa. By monetising the five depots, the state-owned entity hopes to add a steady income stream to its balance sheet while allowing private operators to expand their footprint in inland fuel markets.
The tender comes as Transnet’s rail and port divisions stabilise after a period of financial strain, leaving the company’s debt profile as the next challenge to address.
Interested parties can find the full RFP documentation on the Transnet Pipelines website. The outcome could reshape the supply chain for fuel distributors operating in the country’s interior, potentially affecting pricing and availability for downstream businesses.
Source: Moneyweb
