Transport Minister Barbara Creecy has said that South Africa’s logistics recovery and long-term energy security would depend on the closer collaboration between government and the fuels industry, as the country works to reclaim its position as a leading regional transport and logistics hub.

Addressing delegates on the second day of this year’s Fuels Industry Imbizo, hosted by industry organisation the Fuels Industry Association of South Africa (FIASA), the Minister described the fuels sector as one of the country’s most strategic industries owing to its role in enabling mobility, supporting trade and logistics and underpinning economic activity.

She said government recognised that a resilient and efficient fuel supply chain were key to the functioning of the economy, particularly as South Africa sought to reverse the decline in the logistics performance following the Covid-19 period.

“Our primary position as a logistics hub on the subcontinent is now open to competition from our neighbours, who aim to capitalise on our vulnerabilities.

“In this context, we can’t afford to be complacent, and we must ensure that our transport sector has reliable and secure energy reserves that will assist us in resuming our role as the gateway to the continent,” Creecy said.

She added that the Department of Transport was pursuing an ambitious reform programme aligned with the priorities of the Seventh administration, including infrastructure development, improved policy certainty and a stronger oversight of State-owned entities operating in the transport and logistics sectors.

A key focus area is the strengthening of South Africa’s ports and liquid fuels logistics infrastructure, particularly the Island View precinct in the Port of Durban, which serves as the country’s primary liquid bulk handling hub.

Government, together with State-owned rail logistics company Transnet and Transnet National ports Authority (TNPA) is advancing several initiatives aimed at improving infrastructure planning, operational efficiency and long-term investments within this precinct.

Creecy also reported that significant progress was being made in implementing the Section 79 directive issued under the National Ports Act, with all terminal operator agreements now concluded.

She said the agreements were intended to enhance energy security, promote transformation, increase competition and improve access to strategic liquid bulk infrastructure.

Additionally, Creecy highlighted developments linked to the government’s broader energy security strategy, including progress on liquified natural gas (LNG) infrastructure projects.

She noted the recent signing ceremony between TNPA and the Vopak Terminal Durban-linked Ukwanda LNG project at the Port of Ngqura, describing it as the beginning of a new chapter in the evolution of South Africa’s energy and logistics sectors.

“It demonstrates confidence in the strategic value of this initiative and in the capability of our institutions to deliver infrastructure that meet national needs,” Creecy said.

She further pointed to the progress being made at the Richards Bay LNG Terminal project, including an agreement between special purpose vehicle Zululand Energy Terminal and State-owned power utility Eskom to support the country’s gas-to-power programme.

She said the planned terminal, targeted for commercial operation by the middle of 2030, could play a key role in addressing the country’s anticipated “gas cliff”.

Beyond LNG, Creecy said government is also examining opportunities linked to sustainable aviation fuels as part of broader decarbonisation efforts in the transport sector.

She revealed that a business implementation study developed through the International Civil Aviation Organisation focused on using domestically produced sugar as a feedstock for sustainable aviation fuels and also assessed the feasibility of using the Mossel Bay refinery for fuel production.

“The draft study has been well received by my counterparts at Agriculture and Minerals and Petroleum, and this is the type of cross-sector collaboration that will help to secure our energy leads as we adjust to meeting our energy emissions obligations,” Creecy explained.

She concluded by reaffirming government’s commitment to working with industry to create a transport and logistics environment that is efficient, competitive and sustainable.