South Africa will start building a giant coastal oil terminal next year which its investors said Thursday will be the largest on the continent, AFP reports.
"We are aiming to start construction by quarter two in 2014," said Gideon Loudon, general manager of Oiltanking Grindrod Calulo Holdings, one of the project's partner companies.
Destined for the western port of Saldanha Bay, 140 kilometres from Cape Town, the commercial crude oil storage and blending terminal will cost around $194 million.
It should be up and running by the end of 2016 or beginning of 2017, Loudon told AFP.
The terminal will have holding capacity for 13.2 million barrels -- the equivalent of twelve tankers.
"I don't think there is a crude blending terminal this size and of this nature in Africa at this stage," said Loudon.
His company, a subsidiary of world number two hydrocarbon storer Marquard & Bhals of Germany, will operate the facility in a joint venture with South African firm Mining, Oil and Gas Services (MOGS).
"Port of Saldanha is an excellent location for a crude oil hub as it is close to strategic tanker routes from key oil producing regions to major oil-consuming markets," the firms said in a statement.
Copyright, AFP, 2013.