Fuels Industry Association of South Africa Presents to Parliament on the Strategic Importance of the Durban Island View Precinct

The Fuels Industry Association of South Africa on Friday, 28 November 2025, briefed the Joint Meeting of the Portfolio Committees on Trade, Industry and Competition; Transport; Minerals and Petroleum Resources; and Electricity and Energy on the strategic importance of the Durban Island View Precinct (IVP), the challenges operators face, and measures required to safeguard South Africa’s fuel supply.

The Association, together with some of its members, provided context on the facilities and operations at
the IVP and the Section 79 Direction issued by the Minister of Transport.

The Association emphasised that the IVP is South Africa’s primary energy gateway and a designated
National Key Point. Operators in the precinct manage 72% of the country’s imported liquid fuels,
including 93% of petrol imports and 71% of diesel imports. They produce and distribute specialised
lubricants for mining, heavy industry and manufacturing, and supply supplemental jet fuel to airports
nationwide. The Association highlighted that the South African economy cannot function without a stable
and fully operational IVP.

Parliament was briefed on the prolonged uncertainty facing operators under Transnet’s proposed Island
View Strategy. The absence of a practical Section 56 implementation plan left long-standing operators
on month-to-month leases whilst still managing tightly integrated infrastructure linking refineries,
pipelines, pump stations, berths and storage facilities. This uncertainty disrupted long-term planning and
slowed investment.

Investment in the precinct declined during this period of uncertainty. Operators that had invested R2.4
billion in 2018, only invested R1.1 billion in 2019 and approximately R500 million in 2021 and 2022.
Despite this decline, sustained operator investment ensured that critical infrastructure remained
functional and that national fuel supply security was maintained.

Given the risks to national supply chains, members instructed the Association to apply for a Section 79
Direction from the Minister of Transport. Section 79 empowers the Minister to intervene where South
Africa’s national security, strategic interests, or economic stability are at risk. The Direction provides the
certainty operators need to maintain and improve infrastructure and therefore uninterrupted supply, while
ensuring that the port authority receives ownership of immovable terminal assets when agreements
expire.

The Association reaffirmed its members’ commitment to NERSA’s Allocation Guidelines for Uncommitted
Capacity, which guarantee transparent and non-discriminatory access to storage and pipeline facilities.

Members continue to make uncommitted capacity available to third parties where feasible and to work
with NERSA to expand access.
Members benefiting from the Minister’s Direction plan to invest R60 billion in operations linked to the IVP
and have already contributed approximately R700 million to SMME and supplier development initiatives
across their value chains.

Board of Governors:
S. Naidoo (Chairperson), A. Museisi, A. Makau, D. Bengu, N. Chili, N. Dlamini, O. Aluko
O. Naidu, P. Indurjeeth, T. Booley, T. Mojapelo,
The Association will continue to work closely with TNPA, NERSA and government to stabilise operations
at the IVP, strengthen investment, security of supply, and local refining capacity, support transformation,
and uphold the national interest.