SALDANHA – Transnet National Ports Authority (TNPA) and Freeport Saldanha celebrated the signing of a landmark 25-year land lease agreement on Thursday, 8 October.

The lease unlocks approximately 55 hectares in the Southern Precinct of the Port of Saldanha for industrial development and paves the way for an estimated R6.9 billion investment pipeline.

The ceremonial signing brought together national, provincial and local government stakeholders to celebrate an agreement that promises to transform Saldanha Bay into a hub for port-led industrialisation, job creation and economic growth.

Stieneke Jensma, Board Chair of Freeport Saldanha, emphasised that the lease represents far more than a transaction. “This demonstrates that national, provincial and local government, alongside a state-owned enterprise, can align behind a single investment proposition,” she said. “Success will not be measured by photographs at signing ceremonies, but by delivery such as investor leases, construction, cranes operating, and real, full-time jobs.”

Jensma stressed that Freeport Saldanha, as South Africa’s first and only special economic zone (SEZ) located inside a working port, has a responsibility to deliver tangible benefits.

“This board commits to disciplined, transparent stewardship of this land to advance national development goals. We have clean audits and a strong management team, and now we must convert this lease into construction activity and employment for Saldanha and the wider West Coast region.”

She called on local businesses, SMEs, organised labour and communities to hold the project accountable to its promises, ensuring that economic benefits spread beyond the port into neighbouring coastal towns.

Xola Sithole, CEO of Freeport Saldanha, outlined the immediate priorities. “This agreement provides a governance and institutional framework to implement projects. It creates certainty for investors by clarifying risks, mitigation and returns,” he said.

Sithole announced that Freeport Saldanha is now focused on attracting funded investment quickly, with the aim of breaking ground on at least one catalytic project in the near term. He proposed developing Saldanha as a rail manufacturing hub, leveraging local steel, fabrication capacity, port access and existing industrial partners. “We have land ready inside the port-SEZ. What we need now are investors with funded proposals who can move from agreement to delivery.”

Dr Ivan Meyer, Western Cape Minister of Agriculture, Economic Development and Tourism, hailed the lease as a strategic provincial asset. “This is South Africa’s only SEZ inside a port, and it links port infrastructure and land to give investors 25 years of certainty,” he said.

Meyer highlighted the R6.9 billion investment pipeline across marine and offshore services, energy infrastructure, logistics and advanced manufacturing, as well as Saldanha’s ambition to become a green hydrogen production and export hub.

“The Western Cape government is a shareholder in Freeport Saldanha, and we are committed to working with TNPA, national departments and local municipalities to convert this lease into investor agreements, construction and real jobs. We are open for business, and Saldanha Bay is positioned as a prime site for industrial growth.”

Mthunzi Madiya, Maritime Deputy Director-General for the Department of Transport, said the agreement advances the seventh administration’s priority of inclusive economic growth and job creation. “This enables infrastructure-led re-industrialisation and labour-intensive opportunities. It positions Saldanha as a strategic hub for the oceans economy and the oil and gas value chain – ship repair, offshore supply base, dedicated port infrastructure – creating opportunities for South Africa to capture maintenance and service markets across western Africa.”

Solly Letsoalo, Group Chief Operating Officer of Transnet, emphasised the agreement’s strategic importance for the state-owned enterprise.

“This deal unlocks investment, expands capacity and positions our port assets as catalysts for industrial development,” he said. Letsoalo noted that the lease should broaden Transnet’s customer base, improve asset utilisation and generate additional demand for freight and logistics services, supporting the company’s Reinvent for Growth strategy.

The investment pipeline includes the Namdi project, marine and bunkering services, a proposed floating LNG hub, and broader growth across marine, logistics, manufacturing, energy, and green industries – with associated jobs, skills development, and local supply chain benefits for the West Coast region.

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