TNPA and Freeport Saldanha sign landmark 25-year port lease deal

Transnet National Ports Authority (TNPA) and Freeport Saldanha have signed a landmark 25-year lease agreement to unlock strategic industrial development opportunities within the Port of Saldanha. The agreement covers approximately 55 hectares in the Southern Precinct of the port, providing long-term certainty to attract investment, enhance South Africa's export competitiveness, and support inclusive economic growth across the country.

The agreement builds upon the Commercial Terms Framework previously concluded between TNPA and Freeport Saldanha. By securing long-term land access, the lease supports the expansion of industrial activities tied directly to South Africa's only port-based Special Economic Zone (SEZ). Freeport Saldanha currently holds a robust investment pipeline valued at approximately R6.9 billion. Projects under consideration encompass several critical growth sectors, including marine and bunkering services, industrial development and manufacturing, and energy infrastructure, such as liquefied natural gas (LNG) import and storage facilities.

Emphasising the importance of securing land for prospective commercial partners, Freeport Saldanha Chief Executive Officer Xola Sithole noted: "Investors commit capital where there is certainty, and this lease provides it. With 25 years of secured port-linked land, Freeport Saldanha can now offer investors one coordinated package of industrial land and TNPA facilitated access to port facilities. Our focus is to turn this agreement into signed investor leases, construction activity and jobs for Saldanha Bay and the wider West Coast."

The collaboration between TNPA and Freeport Saldanha is structured to significantly enhance operational coordination between port activities and industrial development. This integration provides investors with the unique opportunity to leverage a world-class commercial port seamlessly combined with a specialised industrial ecosystem. Ultimately, the development optimises strategic port land, prepares the region for growing freight and logistics demands, and establishes favourable conditions for sustainable industrial expansion.

Underlining the economic impact of the partnership, TNPA Chief Executive Mohammed Abdool stated: "The agreement demonstrates the critical role strategic infrastructure partnerships play in enabling economic growth and supporting South Africa's competitiveness. This agreement is more than the leasing of land. It is about creating the conditions necessary for investment, industrial development and long-term growth. By strengthening the relationship between the Port of Saldanha and the Special Economic Zone, we are creating a platform that will attract investment, support exports and unlock opportunities across the logistics value chain."

This agreement directly aligns with Transnet's overarching Reinvent for Growth Strategy, which focuses on enhancing port efficiencies, optimising infrastructure utilisation, attracting crucial investments, and sustaining long-term business growth to establish South Africa's commercial seaports as premier logistics hubs in Southern Africa. Managed in a landlord capacity under the National Ports Act, TNPA oversees eight commercial seaports nationwide. Meanwhile, Freeport Saldanha, a joint initiative of the Department of Trade, Industry and Competition (dtic), the Western Cape Government's Department of Economic Development and Tourism (DEDAT), and the Saldanha Bay Municipality, continues to provide dedicated infrastructure and land to support key target sectors including green hydrogen, offshore services, manufacturing, engineering, and logistics.