Lease history and state ownership 

The original leases were signed with oil majors in 1959 for 25 years, with a final 25-year renewal option. The initial leases expired on 31 October 1984 and the renewal leases expired on 31 October 2009. At termination, buildings, features and improvements became state property without compensation, while machinery, plant and tank installations could be removed subject to restoring the ground. EPTC therefore presents Island View as a state-owned strategic asset rather than an opportunity to extend the status quo indefinitely. 

S 79 directive and transformation 

EPTC argues that the S 79 directive, although presented as balancing transformation and supply security, risks solidifying oil-major dominance for another 25 years. The directive allocates CEF an initial 15% capacity that may increase to 30%, but EPTC says there is no clear implementation mechanism and that TNPA is better placed to manage access for Black entrants. Access to Island View is described as the Government’s key catalyst for comprehensive transformation. 

Island View infrastructure 

The presentation records a leased area of 1,230,847 m², 15 tenants, 81 berths, installed berth capacity of 221 billion litres, 656 tanks, tank capacity of 1,776,846 m³ and annual throughput at IV2 of 13.5 billion litres based on 2022 data. EPTC’s position is that there is room for transformation without a negative impact on security of supply. 

EPTC’s 25% proposal 

EPTC proposes to establish a Pty entity to hold 25% of the Island View Precinct, with TNPA acting as aggregator of EPTC entities and shareholders. Members would hold shares based on pre-agreed criteria, while authorised but unissued shares would accommodate later entrants in line with the EPTC constitution. EPTC would define its scope of operations beyond allocated leases. 

Resolve the disputed leases 

The leases between two companies, remain at different stages of legal process. Following the 15 January 2026 meeting attended by Transnet, the Minister of Transport recommended resolving the disputes around the signed leases.  The two entities await Transnet’s approach to implement that directive. EPTC supports an urgent, negotiated resolution and the finalisation of lease addenda so the sites can contribute to a coherent storage strategy. 

Storage allocation and ownership  

EPTC’s priority is to secure a fair allocation of the 38 hectares of undisputed space remaining available within the 74-hectare Ambrose Park precinct. The allocation should support member-led strategic-stock, storage and liquid-bulk infrastructure, with a consortium structure developed for new projects. The leases in dispute are treated separately: their bankable projects remain subject to ongoing legal and administrative processes with Transnet, which EPTC continues to support toward resolution. 

A directive shaped by exclusion 

The original directive of 28 August 2025 renewed Island View leases for eleven companies while applications from individual EPTC members were declined. Following parliamentary and bilateral engagements, the supplementary directive of 12 May 2026 reserved capacity for new entrants. EPTC regards this intervention as the basis for correcting the continued exclusion of Black-owned enterprises from strategic storage infrastructure. 

EPTC’s expectation  

EPTC expects the amended directive to expressly formalise Black trader inclusion in storage allocation and identify EPTC’s member-owned vehicle, South African Fuels Terminals (SAFT), as the direct beneficiary of the reserved capacity. The framework should recognise the legitimate expectation created through engagements with the Minister and Transnet/TNPA, rather than reopening the allocation through a competitive public SPV process. 

Correcting the historical monopoly 

EPTC’s submission records that the Liquid Fuels Charter’s 25% ownership and direct operational-control objective was not achieved by 2010. Regulatory silos between the Petroleum Products Act, National Ports Act and GIAMA enabled multinational oil majors to retain 100% control of Island View bulk-liquid terminal storage until 2025, entrenching a generational monopoly instead of transforming strategic state infrastructure. 

Transnet as a procuring institution 

EPTC submits that the Public Procurement Act No. 28 of 2024 prevails in procurement matters and that TNPA is a procuring institution under the draft regulations. Because procurement includes income-generating contracts, commercial concessions and the leasing of state assets, 25-year Island View lease renewals should be treated as public procurement subject to open, competitive and transformative bidding. 

Three preferential gates 

The submission supports mandatory set-asides for strategic port logistics zones for 100% Black-owned enterprises, pre-qualification requiring at least 51% direct Black equity ownership, and enforcement of the statutory transformation threshold. EPTC rejects a 15% to 30% CEF SPV allocation where public procurement policy requires meaningful direction of state spend and asset allocations to Black-owned companies. 

Closing the 15% SPV loophole 

EPTC identifies Transnet’s internal policy as misaligned with B-BBEE, the PFMA and the PPPFA when international bidders can establish local SPVs with only a 15% Black equity slice. The submission calls for direct ownership and voting rights that support genuine transformation, not nominal participation. 

Why the Tribunal is needed 

EPTC points to the Section 79(1) Island View directive, which initially renewed incumbent leases without consulting affected Black traders; Company A’s reported biased vessel scheduling and approximately $12 million in demurrage; and the seven-year Ambrose Park access dispute, where members exhausted internal avenues despite bankable leases. Parliamentary intervention was needed before meaningful talks began, illustrating the need for an independent forum with effective remedies and no conflict where institutions may act as both competitor and aggregator. 

EPTC recommendation 

EPTC recommends extending the draft complaint-filing period from 10 days to at least 21 days, preferably 30 days, so affected parties can gather evidence, obtain advice and prepare a meaningful complaint. The Tribunal should provide independent dispute resolution, standstill protection, timely relief and expert enforcement of procurement compliance, with the framework aligned to equity, access and genuine economic transformation. 

Energy sovereignty and strategic reserves 

EPTC says the state cannot finance the required midstream infrastructure alone. The submission calls for direct infrastructure allocations and partnerships with established Black traders, manufacturers and logistics operators so strategic storage, port infrastructure and supply chains are not left under historically foreign-controlled monopolies. 

The Doctrine of Legal Parity 

EPTC highlights the disparity between the 30% direct Black ownership floor applied to upstream extraction under the MPRDA and the inadequate 9% downstream refining baseline. It calls for a mandatory minimum 25% direct Black operational equity threshold across manufacturing, processing, port limits and storage grids. 

Asset-backed finance and the Section 79 SPC

EPTC proposes that the SANPC recognise and support the Section 79 Special Purpose Company developed with DBSA transaction advisers. The vehicle can manage approximately 27.8% of rationalised Island View capacity through long-term TNPA terminal agreements, secure take-or-pay offtake and bankable project finance. 

Local beneficiation and partner criteria 

The Bill should prioritise majority Black-owned partners with physical assets, commercial, logistical and technical competence, and local manufacturing capability. EPTC calls for local crude sourcing, biofuel blending, additive injection and downstream value addition linked to the Island View and Sapref network.