The contracts were granted subsequent to a competitive process and are valued at just over 15.5 billion rand.
“When the president announced Transnet’s Market Demand Strategy in his state of the nation address in 2012, he said it was intended to revitalise South Africa’s transport and logistics infrastructure, which Transnet has custody of,” said public enterprises minister, Malusi Gigaba.
“Further, he challenged us to use programmes like these to create employment, develop skills and pioneer the creation of a new class of industrialists – especially among black people. Transnet has successfully met the challenge.”
The nine companies tasked with covering Transnet’s fuel requirements are Afric Oil, Borutho Gas Supply, Gulfstream Energy, KZN Oils, Mzumbe Oil, NRW Trading and Logistics, Tlhokaina 21, Women of Africa Fuels and Oils and Yem Yem Petroleum.
They will supply Transnet with fuel in tanks installed in Transnet facilities across the country for vehicles and road equipment, diesel traction for all diesel locomotives for fuelling at Transnet sites nationally, and marine diesel for port equipment like dredgers and tug boats.
“Over the next seven years, including the current year, Transnet is spending 307 billion rand on its infrastructure – building ports and expanding them, buying locomotives, wagon and other rail assets and infrastructure and assets while at the same time spending almost a similar amount on its operational expenditure. Not even a cent will be spent without taking into consideration this government’s developmental goals,” Gigaba said.
Transnet group chief executive, Brian Molefe said, “Given the size and the quantum of the contract, and the central role fuel plays in Transnet’s operations, this assessment meant we could comfortably award the contract knowing that security of supply for the company is assured.”