(Ecofin Agency) - In the Port of Cape Town, Burgan Cape Terminals has begun the construction of a new independent fuel storage, distribution and loading facility, for the storage and distribution of both locally produced and imported fuels.

The facility was launched on Thursday. It is the first project to be effected under the government’s Operation Phakisa programme. It is anticipated to boost the country’s economy by R650 million.

The Burgan Cape Terminals is a cooperative partnership between Thebe Investment Corporation, Jicaro a local firm and VTTI a Rotterdam-based international thermal operator. It was awarded a 20-year lease by Transnet for the improvement of the fuel storage facility, which will be completed in 18 months.

According to Martijn Van Dam, Netherland’s State Secretary for Economic Affairs and Agriculture Minister, the facility is a key initiative which will further establish cooperation and partnership between Netherland and South Africa.

“It will play an important role in opening up a previously closed market for emerging black-owned independent fuel suppliers. All of this is good news for the country and for the economy and, most especially, for all fuel consumers”, Muziwandile Mseleku, Burgan Cape Terminal’s CEO commented.

The facility is anticipated to create 130 contract jobs in the construction phase over a period of 22 months. On completion, about 20 operational jobs will be created.

Burgan has at present signed long-term, ten-year contracts with oil companies who cooperatively aim for an output rate of  805 000 m³/year. Companies like Gulfstream Energy signed a three-year agreement to store 120-million litres/year and Shell is to be an anchor tenant, Engineering news reports.