Andre Klynsmith

Shipping and Logistics

Cape Town's Liquid Bulk Reset: What FFS Tank Terminals' 25-Year Edible Oils Concession Means for SADC Liquid Cargo Logistics

Transnet National Ports Authority has appointed FFS Tank Terminals as the preferred bidder to refurbish and operate a liquid bulk terminal at the Port of Cape Town under a 25-year concession — the latest in a series of private sector handovers accelerating the reform of South Africa's port infrastructure in 2026.

Shipping and Logistics

5 April 2026 • 4 min read

The Cape Town liquid bulk terminal has long been underutilised and overdue for private sector investment. With FFS Tank Terminals now locked into a 25-year deal covering edible oils and compatible agri-chemicals, SADC importers of food-grade liquid cargo gain a more reliable and better-equipped western gateway — at a moment when Cape Town's port is fast becoming a strategic alternative to the East Coast.

A Brownfield Deal with a Big Mandate

The TNPA concession award to FFS Tank Terminals covers a brownfield site of approximately 6,289 square metres within Cape Town's Liquid Bulk Precinct, linked to the Eastern Mole and Tanker Basin berths. The investment scope — estimated at R102 million in capital and maintenance costs — includes upgrading storage tanks for structural integrity, repurposing the existing import pipeline used for vegetable and edible oils, refurbishing the Nautilus facility, and overhauling gantry and receiving systems.

FFS Tank Terminals brings over two decades of liquid bulk terminal experience to the concession, with operations at Cape Town and Durban already in its portfolio. Under a Finance, Build, Operate and Transfer (FBOT) structure, the company will invest, operate and maintain the terminal for 25 years before handing it back to TNPA. The arrangement mirrors the concessioning model TNPA has been applying systematically across Transnet's Reinvent for Growth programme throughout 2025 and into 2026.

Why Liquid Bulk at Cape Town Matters to SADC

Cape Town handles a significant share of South Africa's liquid bulk imports and exports — from petroleum products and chemicals to the edible oils that underpin food manufacturing across the country and into landlocked SADC markets such as Zimbabwe, Zambia and Botswana. However, the terminal has for years suffered from ageing infrastructure, limited private sector investment, and operational constraints that pushed liquid bulk cargo toward Durban and Richards Bay even when Cape Town offered geographic advantages for Atlantic-origin shipments.

The FFS concession changes the equation for importers of food-grade oils, agri-chemicals, and compatible liquid cargo. A refurbished, privately operated terminal with upgraded gantry systems and a reconditioning pipeline will reduce dwell times, improve cargo integrity, and unlock handling capacity that the market has been unable to access under public-sector management. For freight forwarders routing food manufacturing inputs into the Western Cape and beyond, this represents a meaningful upgrade in service certainty.

Cape Town's Growing Role on the Cape Route

The FFS announcement arrives as the Port of Cape Town is experiencing its most significant series of private sector investments in years. TNPA has simultaneously tendered a break-bulk and fish terminal for private operation, while container throughput at Cape Town has been benefiting from the ongoing Cape Route diversion effect driven by Red Sea and Strait of Hormuz disruptions. Total TEU throughput at Cape Town has been running at approximately 980,000 units annually, with bunkering volumes and vessel calls also picking up as global carriers favour the southern routing.

The liquid bulk concession extends this momentum into a segment that has long been neglected. For chemical tanker operators and liquid bulk freight forwarders, a modernised Cape Town terminal offers an alternative to Durban's congested port environment — and one with direct Atlantic access for tanker routes from Europe, North America and South America. The SADC agri-food supply chain, which relies on imported edible oils for biscuit, bread, margarine and soap manufacturing throughout the region, stands to benefit from more competitive handling rates and improved turnaround times.

About the Author
	Andre Klynsmith Entrepreneur & Technology Enthusiast Andre's expertise spans technology, blockchain, transport, and logistics — with a passion for innovation and driving positive change across industries. info@laaimylorrie.com | laaimylorrie.com