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By Wendell Roelf
CAPE TOWN, May 3 (Reuters) - South Africa's state-ownedTransnet National Ports Authority (TNPA) will recommend to itsboard that a tender to build and operate a bulk liquid terminalin Durban be reviewed and possibly cancelled, a senior officialsaid.
The "Lot 100" tender at South Africa's main petrochemicalhub Island View on the east coast aimed to bring more blacksinto the petroleum industry, part of government efforts to openup the economy after the end of white-minority rule.
TNPA, a unit of the state freight logistics holding companyTransnet, launched a tender in 2016 seeking bids for a terminaloperator to finance the design, construction and operation of aterminal for refined products in a 25-year concession.
"For Lot 100 we are recommending that it be reviewed by theboard," Nozipho Mdawe, acting chief executive at TNPA, toldReuters, adding that the board would "make a finaldetermination" on whether the tender should be halted.
In the tender, TNPA had stipulated a minimum 51 percentblack ownership stake for the operator, double the requirementoutlined in other government regulations.
This put it at odds with petroleum industry body SouthAfrican Petroleum Industry Association (SAPIA), which representsrefinery operators such as BP, Royal Dutch Shell, Total and Sasol among others.
"The 51 percent ownership target is out of sync with theLiquid Fuels Charter which requires 25 percent, therefore itcannot be supported by SAPIA," SAPIA Executive DirectorAvhapfani Tshifularo said, adding talks with Transnet werecontinuing.
Transnet said the new terminal was meant to be operationalby 2022 as South Africa's national demand for petrol, diesel andjet fuel is forecast to rise to 83 billion litres a year by 2044from 29 billion litres in 2015.
As part of a broader Island View transformation driveTransnet is renegotiating lease agreements, halving it from thecurrent 50-year contracts and separating cargo owners fromterminal operators. The 51 percent black ownership target isstill applicable.
SAPIA's Tshifularo said leases have been temporarily renewedfor a period of two years, but said changes to the way land isleased from Transnet could affect security of supply in Africa'smost developed economy.(Reporting by Wendell RoelfEditing by Edmund Blair)
