Establishment of Petrol Station in South Africa

6 STEPS FOR ESTABLISHMENT OF FILLING STATION IN SOUTH AFRICA

Step 1: Identify a Suitable Piece of Land Identify a suitable and well-located site by looking at the gap (need) to be filled;

• Flow of traffic and developments in the area a key indicators nbsp;
• There is no land size requirements, but property size from 1500m2 to 5000m2 for basic filling stations and 5000m2 or more for Truck stops;
• Acquire land (Buy or lease private land and get permission to occupy for tribal land) nbsp;
• Where possible, consider a feasibility study before the acquisition of the land (Private or Tribal)

Step 2: Conduct Feasibility Study

• A feasibility Study is the assessment of the likelihood of success for the proposed development
• This step will reveal the potential success or failure of the proposed filling station
• This study should advise you whether the site is suitable; or not and if the market is enough for the proposed filling station nbsp;
• The study includes processes to be followed, estimated cost implications, and authorities or stakeholders to be involved nbsp;nbsp;
• Conducting of traffic Count Survey is key to assessing market potential Investigation of similar projects underway in the area of proposed activity and their impact on the proposed filling station nbsp;
• Investigation of other projects and/or developments in the area to support the proposed filling station nbsp;
• Investigation and analysis of performance of existing filling stations in the area (Very critical) nbsp;nbsp;
• There are no distance requirements from the existing filling station, the market determines potential nbsp;nbsp;
• Preparation of Cash flow projects and viability analysis nbsp;
• Market Research Development financial requirements nbsp;
• The results of the feasibility study should be able to advise you if you should proceed with the development or not If happy with the results proceed to

Step 3. Step 3: Check requirements for Road Access Approval (Ingress and egress) nbsp;

• Sites allowing access to vehicles from National Road (e.g N1, N4) require approval from National Road Agency (SANRAL) Sites allowing access of vehicles from Provincial Road (e.g. R566) require approval from Provincial Road Agency (e.g. Gautrans in Gauteng and RAL in Limpopo) nbsp;
• This Step applies only to the Site allowing access of vehicles from National and Provincial Road nbsp;
• Traffic Impact Assessment and Access plan drawings are requirements to Apply for Access Approval with the Road Authority

Step 4: Apply for Land Use Rights and Environmental Authorization nbsp;

• Depending on the current zoning/land use rights of the property (land), Land Use Rights/Property Rezoning applications need to be lodged with the relevant municipality by a Professional Town Planner nbsp;
• Depending on the Petroleum Products (Hydrocarbons Products) storage capacity to be installed on-site and the geographical area of the site, Environmental Authorization needs to be obtained from a competent authority (Provincial Environmental Department) nbsp;
• With the exception of Limpopo Province, if the storage facility is less than 80m3 or 80 000 liters, one can acquire comments from a Competent Authority to confirm that the proposed development is not listed in terms of the National Environmental Management Act (NEMA) Regulations of 2014 and that conducting of Basic Assessment (EIA) is not necessary. nbsp; nbsp
• In Limpopo Province, the threshold is 30m3 or 30 000 liters or more to trigger Basic Assessment (EIA) In other provinces, if the storage facility is more than 80 000 liters (80m3) but less than 500 000 liters (500m3), Basic Assessment (EIA) together with relevant specialists studies needs to be conducted and Record of Decision (Environmental Authorization) will be issued by Competent Authority (Provincial Environmental Department) nbsp;
• The following Specialist studies might be triggered by the proposed development: nbsp; Geotechnical Assessment or Geo-hydrological Assessment (Must study for Filling stations) or/and nbsp; Ecological Study or/and nbsp; nbsp; Heritage Study or/and Traffic Impact Assessment or/and nbsp; Any other study might be suggested during public participation process nbsp; The two processes for Environmental Authorization (EIA) and Land Use Right Application can run concurrently in the interest of time. nbsp; Unlisted Activity Comments (Less than 80m3) normally takes 1 to 2 months to acquire depending on the competent authority nbsp; Basic Assessment (EIA) normally takes between 3 and 6 months depending on the authority nbsp; nbsp; Land Use Rights or Rezoning application normally takes between 3 and 6 months, also depends on Municipalities

Step 5: Lodge Petroleum Site and Retail License Application

• For one to develop and operate a filling station in South Africa, Petroleum Products Site and Retail Licences must be acquired from the Department of Energy Office of the Petroleum Controller. Licensing of petroleum products started in 2006 to drive economic transformation within the petroleum and liquid fuels industry, to archive the 1998 White Paper on Energy policy objectives. The Department of Energy is mandated amongst others to regulate the petroleum industry at the manufacturing, wholesaling, and retailing levels, through the implementation of the Petroleum Products Act, 1977 (Act No. 120 of 1977) as amended. The above responsibility is carried out by the Controller of Petroleum Products who is appointed in terms of the Act.
• For Site and Retail licenses, an application must be lodged with the Department of Energy's relevant regional offices in 9 Provinces. As Mmadibuke Consulting and Projects – Petroleum and Liquid Fuels Consultants, we facilitate license applications on behalf of our clients, arranging and preparing all necessary documentation and information for licensing purposes in terms of the requirements of the Controller of Petroleum Products (DoE). A week to three weeks can be spend on preparation and arrangement of documents to lodge the applications with Department of Energy, Office of Petroleum Controller, this include arrangement with Oil companies for Supply agreement, franchise agreement or letter of intent to supply The following are documents accompanying the Site and Retail License application forms: Site License Documents Filed Application form (DE29) Title deed or permission to occupy nbsp;Particulars of land owner (ID copies, Trust documents or/and Company documents) Property Zoning certificate (Permitting Public garage) nbsp;Environmental Authorization (Record of Decision or Unlisted Activity Comments) nbsp;Road Access Approval (National Road) nbsp;Motivation for Site Development nbsp;Environmental Management Plan and Site Insurance Policy (Upon Approval) nbsp;nbsp;Site License Fee: R 1 000.00 (payable to Department of Energy upon approval) Retail License Documents Filed Application form (DE29) Company documents, trust documents or/and ID copies Business Plan (Promoting objectives of Licensing) Cash Flow Projections including Net Present Value Calculations Traffic Count Supply agreement, Franchise agreement or letter of intent to supply nbsp;Proof of Funds or loan agreement Motivation for Retailing operations Retail License fee: R 500.00 (payable to Department of Energy upon approval)

Step 6: Construction Phase Upon issuing of Site and Retail License, construction can commence nbsp;

Department of Energy gives you 12 months to commence operation Depending on the viability of the proposed Filling Station development, Oil companies have the following offers: Supply Only nbsp; Branding and Supply nbsp; Pump and Tanks, Branding and Supply Complete Filling Station Development (Construction, Branding, and Supply)

As Mmadibuke and Associates, we facilitate the whole process for the establishment of the filling station from feasibility study to the acquisition of Site and Retail License with the Department of Energy on behalf of our clients, including arrangement of deals with oil companies of their choice. Our fees depend on the project scope; as a result, we don’t have standard fees.

About Us Mmadibuke and Associates is the leading consulting and project management firm specializing in petroleum and liquid fuels infrastructure developments. We are the top consultants in petroleum licensing, environmental authorization, town planning, and road engineering for petroleum and liquid fuels infrastructure projects. We are passionate about assisting new companies venturing in petroleum wholesaling and retailing to thrive by offering full petroleum licensing and environmental consulting solutions and providing the most efficient and cost-effective solutions that new businesses need.

Our Dream A Leading, reputable, and preferred specialist within the petroleum and liquid fuels consulting and project management space, offering quality, efficient, and affordable services

Mmadibuke and Associates was established in 2016 as a specialist petroleum licensing consulting firm. Having managed many projects within the petroleum and liquid fuels industry, Mmadibuke and Associates became the leading specialist in the sector. Mmadibuke Consulting and Projects emerged to cater to other solutions that go together with petroleum and liquid fuels infrastructure development, such as environmental impact assessments, town planning, road engineering, and feasibility studies.

We are proud to have assisted over 200 clients all over South Africa with the acquisition of licenses and permits for petroleum and liquid fuels infrastructure development, with many of the projects being fuel filling stations Our working experience within the petroleum and liquid fuels industry and build environment, as well as our continued involvement in the petroleum and liquid fuels industry nbsp; and build environment industry regulatory forums and events position us to cater our clients with up to date and correct processes and procedures for acquisitions of licenses and permits.

Teddy Mmadibuke Mothapo

[email protected]