Transnet announces R15.5 billion contract to supply fuel


Transnet on Thursday 5 December announced the awarding of a R15.5-billion contract to nine black and women-owned companies for the supply of fuel for the next five years.

Speaking at the announcement, Public Enterprises Minister Malusi Gigaba said the nine companies will supply Transnet with home-base fuel in tanks installed at Transnet facilities across the country for vehicles and road equipment, diesel traction for all diesel locomotives for fuelling at Transnet sites and marine diesel equipment.

“This day will go down in history where Black Economic Empowerment (BEE) took a big leap forward,” said Gigaba.

As a result of the country’s history, the majority of black people had been excluded from the mainstream economy. Gigaba said the awarding of the contract was an instrument to address the injustices of the past and would assist in getting more black people into the economy.

It was important to get those who had been economically excluded to share in the country’s growth, he said.

The minister said the awarding of contracts to black firms should not just be restricted to companies being given cleaning work at companies such as Transnet.

“This is not what we want to see black people limited to,” he emphasised, adding that the focus should also be on the creation of black industrialists.

The  nine companies awarded the contract are: Afric Oil, Borutho Gas Supply, Gulfstream Energy, KZN Oils, Mzube Oil, NRW Trading, Tlhokaina 21, Women of Africa Fuels and Oils and Yem Yem  Petroleum.

Eight of the nine companies are 100% black-owned, while five of them are more than 80% women-owned, with three being new entrants in the industry.

The successful bidders were assessed on price, supplier development, B-BBBEE and technical ability, among others.

Transnet Group Chief Executive Brian Molefe said that while the state-owned ports and rail operator has awarded the contract (a process which took about 18 months), it will also mentor the companies.

“It won’t just end at buying fuel [from them]. We will be interested in the companies. We are keen to see them succeed,” he said.

Molefe said the awarding of the contract contributes significantly to the entity’s supplier and enterprise development goals, especially in relation to skills development, job creation, technology transfer and rural integration.

It could not yet be quantified how many jobs will be created as a result of the contract, said Molefe.

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