TNPA, Freeport Saldanha sign 25-year lease for 55-hectare port precinct
The Port of Saldanha is South Africa’s primary gateway for iron ore exports and handles bulk commodities, including manganese.
SOUTH AFRICA – Transnet National Ports Authority and Freeport Saldanha have signed a 25-year lease agreement covering about 55 hectares in the Port of Saldanha’s Southern Precinct, according to a joint statement.
The agreement follows the Commercial Terms Framework the two parties previously agreed to and provides long-term land security to attract industrial investment linked to South Africa’s only port-based Special Economic Zone.
Investment pipeline and target sectors
First, Freeport Saldanha has an investment pipeline valued at approximately R6.9 billion (US$399 million).
Projects under consideration span marine and bunkering services, industrial development and manufacturing, and energy infrastructure, including liquefied natural gas import and storage facilities.
The lease structure provides investors with access to port-linked industrial land and TNPA-facilitated access to port facilities, addressing a recurring constraint in South African port development: industrial tenants have historically faced uncertainty over long-term land tenure.
Freeport Saldanha Chief Executive Officer Xola Sithole said: “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.”
Strategic alignment and port context
The agreement aligns with Transnet’s Reinvent for Growth strategy, which targets improved port efficiency, optimized infrastructure utilization and the attraction of private investment.
TNPA Chief Executive Mohammed Abdool said: “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.”
The Port of Saldanha is South Africa’s primary gateway for iron ore exports and handles bulk commodities, including manganese. Its West Coast location puts it near Atlantic shipping routes, while the SEZ framework offers incentives for manufacturing and energy projects that require port access.
For logistics operators, the practical significance hinges on whether the lease translates into operational capacity and whether the port’s bulk-oriented infrastructure would need to be adapted for containerized or breakbulk industrial cargo.
Lastly, if developed, the LNG import component would be the Western Cape’s first and could reshape regional energy logistics.
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