Oil depot to surface in Zululand

PORT Durnford has been selected to become home to a new R19-billion tank farm storing and distributing crude oil, biofuels, ethanol, liquid petroleum gas (LPG) and chemicals.

The extensive project, spearheaded by Phangela Holding, will see the construction of a two million cubic metre liquid bulk storage hub and throughput facility approximately 25km south-east of the Port of Richards Bay.

Two single buoy mooring (SBM) units and deep-water berths will receive imported bulk liquid product and a reversible off-shore pipeline will connect the facility to three major oil refineries in Durban.

Phangela Holding Executive Project Manager Mike van Croonenburg said the facility will also connect with the country’s existing pipeline infrastructures to create ‘a distribution hub in the South African region via seagoing and railway logistics’.

‘The Phangela Storage Tank Farm, when operational, will be the most modern and sophisticated bulk liquid storage and throughput facility on the African Continent and most likely the most modern facility in the World,’ said Van Croonenburg.

‘This project will be highly beneficial for the region.

‘It will create a significant number of jobs, during construction and when operational, and all vacancies will be filled by local employment.

‘Not unimportant to mention is that it will create additional economic streams for the local region owing to the supply of provisions for unloading vessels for their onwards journey.’

Petrol Storage Broker, an oil terminal real estate consultant from the Netherlands, was contracted to formulate the overall work required after feasibility studies were performed between 2009 and 2012.

In 2012, the contract for all construction work was awarded to American Tank and Vessel, which said it will support 97% local employment.

The selection process for a bulk liquid terminal operator is still in process from last year.

‘A state-of-the-art terminal requires an operator with a ‘triple A’ track-record and more than good reputation,’ said Van Croonenburg.

In December last year, Phangela appointed Fendercare Marine, headquartered in the United Kingdom, as the Marine Facilities Operator.

This month, Phangela Holding ‘kicked off international sales’ to its potential customers.

‘The international sales team is based in the Netherlands, Switzerland, United Kingdom and United States,’ said Van Croonenburg.