Namport tenders close for oil and gas port expansion

CHAMWE KAIRA

Namport has closed tenders for new berths and upgrades at Walvis Bay’s South Port to support the development of the Venus oil field, with construction scheduled to start in early 2027.

In response to questions by Observer Money, the Namibian Ports Authority said that bids for the project had closed, with evaluation and contract awards expected to follow soon.

The project forms part of a phased expansion programme aimed at preparing Walvis Bay and Lüderitz for increased oil and gas activity, with Namport saying the assessment that the two ports can accommodate only two oil developers reflects their current capacity and does not account for planned expansions.

Namport is also developing plans for two dedicated oil and gas supply bases, one at each port. Both will be greenfield developments undertaken by the private sector and are currently at tender or concession-negotiation stage.

The authority said the Lüderitz supply-base tender closed on 26 October 2026, with bids received now due for evaluation.

The developments are intended to provide additional capacity for offshore supply vessels, equipment storage and logistics services as oil and gas projects advance.

Namport said its expansion programme was designed around timelines provided by oil and gas operators, including TotalEnergies, with discussions on their infrastructure requirements having taken place over several years.

The authority said the planned investments would increase capacity at both ports to accommodate future demand from the sector.

The Walvis Bay South Port project will add new berths and upgrade existing facilities. This is expected to address capacity requirements as offshore exploration and development activities increase.

Namport’s response comes amid questions about whether existing port infrastructure can accommodate multiple oil developers operating offshore Namibia.

The authority said its port expansion plans would be implemented in phases, with short-, medium- and long-term projects aligned with the expected requirements of oil and gas operators.

In 2025 financial year, company said the financial performance saw operating profit increased significantly by N$245 million, or 45%, to N$793 million (2024: N$548 million), driven by sustained cargo and marine service volumes, as well as the addition of concession revenue totalling N$143 million during the year.

At the group level, total revenue increased by 12%, from N$2.56 billion in 2024 to N$2.88 billion in 2025.

Group operating profit strengthened to N$967 million, up from N$793 million in 2024, with an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of 42%.

Namport stated in the 2025 annual profitability ratios improved markedly, with the authority’s return on assets increasing to 8.22% (2024: 4.96%) and the group’s to 9.20% (2024: 7.53%).

Container volumes have shown a generally upward trajectory, increasing from 155,980 TEUs in 2020/21 to 171,151 Twenty-foot Equivalent Unit (TEUs) in 2023/24, despite a brief dip in 2023.

In 2024/25, performance accelerated sharply with concessioning, culminating in a 48% year-on-year increase to 253,996 TEUs.

Cross-border cargo volumes increased by 13% in 2024/25, recovering from the decline recorded in the previous year.

Growth was primarily driven by a rebound in the Democratic Republic of the Congo (DRC) and Botswana volumes, supported by increased mining output and stronger return cargo flows from Zambia.