Tender Summary: Milnerton Tank Farm RFI

Objectives

The primary objective is to identify capable organisations to support the refurbishment, repurposing, and commercial utilisation of the historic Milnerton Tank Farm. The initiative aims to restore the facility’s role in South Africa’s petroleum supply chain, balancing national energy security through strategic fuel stockholding with commercial storage opportunities. This Request for Information (RFI) serves as a non-binding preliminary stage to inform business case development and establish a pre-qualified panel for future project-specific commercial bids.

Scope

Bidders are invited to submit indicative development proposals addressing the following areas:

• Market & Demand Analysis: Evidence of prospective users, product mix preferences, and market demand for finished petroleum products.
• Refurbishment & Repurposing Concept: Proposed conversion strategy, phasing, supporting infrastructure upgrades, and implementation approach.
• Funding & Investment Capacity: Indicative capital and operating costs, equity availability, external funding sources, and financial credibility.
• Logistics & Access: Receiving and dispatch routes, pipeline integration, and necessary modifications to existing port and refinery connections.
• Regulatory & Environmental Compliance: Adherence to environmental standards, safety regulations, and permitting requirements.

Participation does not guarantee contract awards, tank allocations, or financial commitments. Bidders bear their own preparation costs. Successful respondents may be placed on a pre-qualified panel for future tenders over a five-year period.

Technical Requirements

Proposals must demonstrate technical feasibility and compliance with stringent operational standards:

• Asset Condition & Integrity: Address API 653 inspection findings, including planned repairs to tank floors, shells, roofs, piping, and safety systems. Allow for additional condition verification and product-specific engineering assessments prior to recommissioning.
• Strategic Stockholding Integration: Detail indicative capacity, product segregation, stock access protocols, rotation schedules, and operational interfaces between strategic and commercial storage.
• Pipeline & Logistics Modifications: Identify required adjustments to existing connections with the Astron Refinery and Port of Cape Town, including access agreements and capacity validation.
• Project Methodology: Provide a comprehensive, full-life-cycle development programme covering activity sequencing, critical dependencies, realistic timelines, deliverables, and progress monitoring.
• Governance & Ethics: Submit documented governance structures, anti-corruption policies, conflict-of-interest declarations, and oversight mechanisms.

A minimum technical evaluation threshold of 70 out of 100 points is required for panel inclusion. Binding finance, final designs, and priced bids are not required at this stage.

Skills Requirements

Bidding entities must possess proven expertise and qualified personnel across multiple disciplines:

• Industry Experience: Demonstrable track record in petroleum storage terminals, logistics hubs, or comparable hazardous industrial projects, with verifiable client references.
• Technical & Engineering Capability: Access to specialist teams with relevant credentials, CVs, and experience in tank refurbishment, integrity management, and product-specific engineering.
• Financial & Commercial Acumen: Ability to structure indicative funding plans linked to tank numbers, phases, and supporting infrastructure, distinguishing between own-funding and external financing.
• Local Collaboration & Skills Transfer: Implementable plans for local stakeholder engagement, supplier participation, and measurable skills-transfer outcomes with named responsibilities and milestones.
• Market & Strategic Planning: Expertise in aligning refurbishment concepts with national energy objectives, demonstrating credible demand forecasting and phased stockholding strategies.

Key Terms & Clarifications

• API 653: An industry standard governing the inspection, repair, alteration, and reconstruction of above-ground storage tanks. Compliance ensures structural integrity and safe recommissioning after prolonged dormancy.
• Strategic Petroleum Stockholding: Government-mandated fuel reserves designed to ensure national energy security during supply disruptions. Requires strict physical segregation, controlled access, and regulated rotation cycles separate from commercial inventory.
• RFI Panel Establishment: This procurement phase collects indicative proposals to vet and qualify bidders for a future tender list. It does not constitute a binding contract, concession agreement, or guaranteed revenue stream.
• SBD Documentation: Standard South African public procurement forms (e.g., SBD1 for supplier registration, SBD4 for conflict of interest, SBD8 for supply chain management compliance) ensuring adherence to national treasury and competition regulations.