South Africa to Boost East London Port’s Competitiveness with LNG Terminal

East London Port South Africa — South Africa looks to add an LPG termina at its East London port (Transnet)

South Africa is hoping to boost the fortunes and competitiveness of its East London river port. Port operator Transnet has decided to build a liquefied natural gas (LNG) import terminal at the facility.

Located at the mouth of the Buffalo River, the Port of East London is the only commercial river port in South Africa. Though consisting of diversified cargo handling facilities for containers, bulk liquids, dry bulk free-flowing grains, and general breakbulk, the port’s core business has been supporting the region's automotive manufacturing sector as the main export hub.

Last year, Transnet National Ports Authority (TNPA) completed a $3.6 million project to deepen and strengthen the port’s automotive terminal, allowing two new-generation automotive vessels greater than 200 meters (656 feet) in length to berth simultaneously and increasing the port’s capacity to handle 790,000 units annually. In terms of containers, ongoing investments aim to increase the port’s handling capacity to over 100,000 TEU from roughly 30,000 TEU currently.

TNPA wants to further boost the Port of East London’s competitiveness after launching a tender seeking a private operator to invest in a small- to medium-scale LNG terminal. The operator will design, finance, develop, construct, operate, maintain, and transfer the terminal under a 25-year concession agreement. TNPA did not reveal the costs of the project, but stated the facility will be transferred to the state entity upon expiry of the concession.

The terminal will be used for receiving and dispatching LNG via vessels, pipelines, and tankers and will incorporate facilities like storage tanks and other terminal infrastructure. It will be built on a greenfield site of approximately 8,900 square hectares located within the port’s West Bank precinct. Currently, the precinct accommodates the automotive terminal, the dry bulk terminal, and a tanker berth.

TNPA is highlighting that the LNG terminal forms part of its strategic direction to advance the port’s infrastructure development and support diversification for the future energy demand in the Eastern Cape, where demand for natural gas has been on the rise. Specifically, the terminal is expected to provide a reliable energy solution for niche LNG consumers and industrial users while reinforcing the port’s role in enabling industrial growth, job creation, and economic growth.

Of critical importance is that the terminal will help South Africa tackle the perennial challenge of load shedding owing to the country’s dependence on coal-fired power stations. The country has developed a strategy to replace coal with gas-fired and renewable electricity generation sources.

“This initiative represents a significant milestone in unlocking new investment opportunities within the port, further advancing its long-term growth and development objectives,” said Sphiwe Mthembu, East London Port Manager.

Mthembu added that by creating an enabling environment for new industries and emerging trade opportunities, TNPA is positioning the Port of East London to respond to evolving market needs while contributing to regional competitiveness and sustainable development. Interested operators have until the end of February next year to present their bids.