South African Public Enterprises Minister Alec Erwin has promised that he will intervene in the matter of the relocation of a tank farm operated by petroleum companies at the Port Elizabeth harbour.
Erwin has indicated that while the National Port Authority would not pay for relocation, it would provide land at the new multi-billion Coega port industrial development zone.
Erwin was replying to a question from Democratic Alliance MP Eddie Trent, a veteran Eastern Cape politician. Trent asked whether any negotiations had taken place between Portnet and the petroleum companies which operated the tank farm situated in the “old” harbour with a view to relocation to Coega ahead of the expiry of the current lease agreements and whether he intended intervening in this regard.
Erwin said while no negotiations had taken place to relocate the oil companies to Ngqura (at Coega), the leases would expire between 2012 and 2014.
“If the National Port Authority of South Africa (NPA) were to be approached by the oil companies with a request to relocate earlier, land would be made available to them.”
Nevertheless, the minister said he would intervene, as the relocation of the tank farms presented “an opportunity for a clean port and development of tourism-related activities in the area, including the development of the waterfront”.
The minister noted that preliminary discussions had taken place to indicate to the oil companies that because of port planning principles, the Port Authority would not renew leases at Port Elizabeth and would prefer the tank farms to be relocated to Ngqura.
The lessees raised questions of whether or not the NPA would compensate them and “if a phased approach would be taken”.
Their contention was that they were aware of the NPA’s intention to move them prior to expiry of the legal lease agreement and argued that the relocation costs would have to be borne by the NPA.
But Erwin emphasised that the NPA “is of the view that if it allowed the leases to expire, it would not be required to compensate the oil companies, the cost of which would prove exorbitant”.
According to Trent, among the companies involved in the tank farm are Shell, Engen and Caltex.
Welcoming Erwin’s pledge, Trent said: “This is fantastic. The whole development of the old harbour much like the Cape Town Waterfront development will be a major tourism boost. This, however, is dependent on linking the harbour with the central business district and the redevelopment of the inner city.” – I-Net Bridge