By Levy Masiteng
Energex, an energy company headquartered in the Hamriyah Free Zone in the United Arab Emirates, has become the latest foreign direct investor to establish a South African subsidiary, proposing to invest about R260 million in a bitumen import, storage and distribution terminal in Durban.
The investment was confirmed by eThekwini City Manager Musa Mbhele during the City’s Investor Fridays site visits.
Mbhele said the proposed “Mother Terminal” would significantly strengthen supply chains and infrastructure delivery.
According to the City, the facility is expected to provide storage capacity of between 6 000 and 8 000 tonnes, expandable to 10 000 tonnes, and accommodate vessels carrying between 5 000 and 15 000 tonnes per shipment.
The municipality said the terminal will support South Africa’s national bitumen demand, estimated at between 60 000 and 70 000 tonnes per month. Bitumen is primarily used in the construction industry, particularly for road building.
“This catalytic investment reinforces Durban’s position as a strategic logistics and energy hub while directly supporting national infrastructure programmes,” Mbhele said.
The project is expected to create about 40 local jobs, facilitate annual distribution of bitumen valued at approximately R879 million, and generate an estimated R130 million per year in duties and VAT, according to the City.
Meanwhile, property developer Balwin Properties confirmed its intention to begin construction of around 900 apartments under phase two of the Izinga Eco Estate development outside Umhlanga by June, with first transfers anticipated by February next year.
The development remains subject to final comments from the South African National Roads Agency SOC Limited and the City’s Water and Sanitation Directorate.
Mbhele assured the developer that outstanding matters would receive priority attention.
“This disaster mitigation intervention must be prioritised. It protects existing investments and unlocks further downstream development opportunities,” he said, referring to planned upgrades to Herrwood Drive and the construction of an attenuation tank to address stormwater challenges.
The delegation also visited UPL South Africa, a manufacturer of insecticides and related plant products, where discussions focused on expediting the Water Use Licence Application (WULA) and resolving outstanding by-law approvals to enable demolition and subsequent development to proceed.
“Our responsibility is to ensure that compliance processes are predictable, transparent and responsive so that investment is not unnecessarily delayed,” Mbhele said.
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